Cost of COVID | Furlough scheme 'open to abuse', says HMRC

Furlough scheme 'open to abuse', says HMRC

The latest data revealed by the British Chambers of Commerce earlier this month confirmed that the current estimation of companies utilising – or planning to utilise – the Government’s furlough scheme could well total 50%, meaning up to 9million of the UK’s employees may well be on the scheme, which guarantees up to 80% of wages will be paid by the Government as part of its Job Retention Scheme, before the coronavirus pandemic ends. The current cost the to the taxpayer as a result of the scheme is estimated to total £30-40billion.

However, HMRC Chief Executive Jim Harra this week admitted that, after much media speculation on the subject, in its current form the scheme was indeed vulnerable to abuse at the hands of companies still asking professionals to work, despite being put on furlough.

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