First arrest for furlough fraud
As we recently reported, the commission of furlough fraud was to be expected given the circumstances and timeframe in which the Coronavirus Job Retention Scheme (Scheme) was introduced, and HMRC have made no secret of the fact that they will be looking very closely at claims made under the Scheme for evidence of abuse.
However, it was reported last week that that even before the Scheme has come to a close, HMRC has already made an arrest in respect of an alleged furlough fraud worth £495,000.
Apparently the arrest of an individual from the West Midlands, during which computers were seized and bank accounts subsequently frozen, was part of a wider investigation into a multi-million pound fraud. However, this sends a strong message to employers that HMRC is taking furlough fraud seriously and will take action where fraud is suspected.
Current figures indicate that approximately £27 billion has been paid out to employers via the scheme so it is understandable that HMRC is keen to claw back any sums that have been obtained fraudulently.
The arrest is yet another stark warning to employers using the Scheme to make sure that their claims are accurate.
If you have any questions about furlough fraud, please email or call our Employment Law team today on 0113 207 0000.
Partner and Head of Employment
Employment Law
PKelly@LawBlacks.com
0113 227 9249
@PaulLawBlacks
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Paul Kelly
