HMRC has published a briefing document outlining measures that were put in place to minimise the risk of error and fraud in relation to the UK government’s covid-19 support schemes. The document also sets out HMRC’s subsequent work to address non-compliance, which has included the following:
Claims were risk-assessed against various criteria before payment (e.g. lists of ‘known suspect organisations’) and HMRC blocked more than 65,000 claims in this way.
As at July 2022, HMRC estimates that the total amount of money ‘either blocked from being paid out or recovered through our compliance work sits at more than £1.2 billion, with compliance activity still ongoing’.
HMRC’s Taxpayer Protection Taskforce has prioritised tackling fraud in the covid support schemes, having so far opened 41,000 individual cases.
The ‘most likely estimate’ for the value of errors in the main support schemes is now £3.9bn, according to HMRC (down from the previous estimate of £5.8bn). HMRC expects to publish final data on the job retention scheme alongside its 2022/23 annual report and accounts.
The briefing also sets out the context – that the support schemes were introduced quickly and supported millions of individuals, with a total cost to the exchequer of nearly £100bn. HMRC also briefly addresses media criticism, noting: ‘We are absolutely dedicated to tackling error and fraud in the Covid support schemes. We are not writing anything off and will continue to prioritise the most serious cases of abuse.’
Separately, the UK government has responded to Public Accounts Committee criticism over its management of the covid bounce back loan scheme, which the Department for Business, Energy and Industrial Strategy estimated could expose the taxpayer to a £17bn loss (Annual Report and Accounts 2020/21). The government agrees with most of Committee’s recommendations, which focus on managing the legacy of the scheme, minimising fraud and maximising recoveries.
HMRC has published a briefing document outlining measures that were put in place to minimise the risk of error and fraud in relation to the UK government’s covid-19 support schemes. The document also sets out HMRC’s subsequent work to address non-compliance, which has included the following:
Claims were risk-assessed against various criteria before payment (e.g. lists of ‘known suspect organisations’) and HMRC blocked more than 65,000 claims in this way.
As at July 2022, HMRC estimates that the total amount of money ‘either blocked from being paid out or recovered through our compliance work sits at more than £1.2 billion, with compliance activity still ongoing’.
HMRC’s Taxpayer Protection Taskforce has prioritised tackling fraud in the covid support schemes, having so far opened 41,000 individual cases.
The ‘most likely estimate’ for the value of errors in the main support schemes is now £3.9bn, according to HMRC (down from the previous estimate of £5.8bn). HMRC expects to publish final data on the job retention scheme alongside its 2022/23 annual report and accounts.
The briefing also sets out the context – that the support schemes were introduced quickly and supported millions of individuals, with a total cost to the exchequer of nearly £100bn. HMRC also briefly addresses media criticism, noting: ‘We are absolutely dedicated to tackling error and fraud in the Covid support schemes. We are not writing anything off and will continue to prioritise the most serious cases of abuse.’
Separately, the UK government has responded to Public Accounts Committee criticism over its management of the covid bounce back loan scheme, which the Department for Business, Energy and Industrial Strategy estimated could expose the taxpayer to a £17bn loss (Annual Report and Accounts 2020/21). The government agrees with most of Committee’s recommendations, which focus on managing the legacy of the scheme, minimising fraud and maximising recoveries.
