The Coronavirus pandemic saw the introduction of various measures by the UK government to support businesses. In March 2020, the Chancellor announced the Coronavirus Job Retentions Scheme. This allowed all UK employers with employees on PAYE to retain them with furlough. Millions of people across the UK benefited from this, with 1.9 million jobs still furloughed by the end of June 2021. However, around 27,000 cases of fraud were reported to HMRC by April 2021, which is now under investigation.
If you are being investigated by HMRC, Evan Moore Solicitors can assist. We can provide advice and representation from the outset. For information about our legal representation, call us on 0208 0900 806.
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What is Furlough Fraud?
Furlough fraud is a form of payroll fraud that happens when a business overclaims from the furlough scheme. This may or may not have been intentional. Best case scenario, employers who can demonstrate that they have made a genuine error may only be required to repay any overpayment to HMRC.
Examples of furlough fraud include:
Employers making claims under the Scheme for a non-existent employee.
An employer making claims on behalf of an employee without the employee’s knowledge whilst they continue to work as normal.
An employer misrepresenting the hours an employee has worked to maximise the amount recoverable under the scheme.
During furlough fraud investigation, HMRC have a wide range of powers. They may request business records, including emails to verify if an employee exists and if they have continued to work whilst on furlough. HMRC may also conduct searches at the business premises and interview suspects under the Police and Criminal Evidence Act 1984. Additionally, they may claw back payments and enforce financial penalties for fraudulent and wrongful claims.
Is Furlough Fraud A Criminal Offence?
Yes. Furlough fraud is a criminal offence. Under legislation, companies who have dishonestly claimed furlough will face penalties or criminal action. The civil penalty is 100% of the amount not used for employees’ costs.
You are also required to notify HMRC within 90 days of the non-entitlement to the COVID-19 payment. Furthermore, you will face a separate penalty for failure to notify if the individual knew that they were not entitled to payment.
How Can Evan Moore Solicitors Help?
If you or your company are facing a HMRC furlough fraud investigation, Evan Moore Solicitors can help. We can offer advice and specialist legal expertise.
As soon as you become aware of any potential investigation or prosecution, you must seek professional advice. Fraud is a serious matter and carries serious consequences. If you require emergency assistance, call 07498 058 138.
If You Need Legal Help Contact Evan Moore Solicitors
Contact us to find out more or to arrange a consultation with an experienced solicitor.
Contact Evan Moore Solicitors
For further information regarding furlough fraud investigations, please contact Evan Moore Solicitors. Call us on 0208 0900 806. Alternatively, send us a message via our contact form and we will be in touch. We are based in West London and cover a wide range of areas.
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