As the UK is now gradually easing out of lockdown and (hopefully) with the end of the Covid-19 pandemic in sight, it is inevitable that the Government will now turn its focus towards clawing back the funds expended in the course of its various Support Schemes.
As part of this year's budget in March 2021, the Government announced that it will be deploying £100m in the creation of a new Taxpayer Protection Taskforce to investigate individuals and businesses who wrongfully claimed under the Government Support Schemes. The taskforce will consist of approximately 1250 HMRC officials who will target those who have fraudulently claimed under the following schemes:
- Coronavirus Job Retention Scheme (otherwise known as the Furlough Scheme);
- Self Employed Income Support Scheme;
- Bounce Back Loan Scheme;
- Coronavirus Business Interruption Loan Scheme;
- Coronavirus Large Business Interruption Loan Scheme; and
- Eat Out to Help Out Scheme.
As of March 2021, the taskforce had already made 10,000 enquiries into wrongful claims. The taskforce are choosing which claims to investigate based on payment data, PAYE records and tip-offs from members of the public. It is anticipated that there will be more enquiries made by the taskforce.
If an individual or business has been found to have wrongfully claimed taxpayer funds during the pandemic, they may be liable to civil and/or criminal penalties. HMRC's investigations are not solely limited to fraudulent claims, they are also investigating individuals and businesses who have mistakenly claimed funds when they were not entitled to do so under the scheme's criteria. In some instances, individuals may not even be aware of assistance their employers claimed, either inadvertently or fraudulently.
It is therefore essential that all individuals and businesses that claimed taxpayer funds during the pandemic review their paperwork and records to ensure that they did so correctly and in accordance with the criteria in force at that time. If it transpires that a mistake was made, then it is essential to seek independent legal advice at the earliest opportunity.
Our Litigation team provides specialist, tailored and commercially focused advice to suit your needs and objectives. We have considerable experience in advising on a wide variety of disputes including Tax Disputes and Litigation.
To find out more or discuss your individual circumstances in further detail, contact us on 01603 693500 or email us using the 'Make an Enquiry' form on our website.
We can carry out telephone or video appointments, reducing the need for face-to-face meetings in accordance with social distancing guidelines. Face-to-face meetings are available strictly by appointment only at our Norwich, North Walsham, and Sheringham offices
*This article is provided for general information purposes only and does not constitute legal advice or other professional advice.
