HMRC | Furlough-related fraud cases leap to 7,000

In June, research conducted by Crossland Employment Solicitors revealed that a third of furloughed staff members were asked to continue doing their job as normal, while 29% were asked to carry out more administrative tasks.

In addition, the data found that one in five have been asked to cover a colleague’s job or to work for a firm linked to their employer whilst on the Coronavirus Job Retention Scheme (CJRS). As a result of such cases, referred to as ‘furlough fraud’, HMRC confirmed the first arrest had been made in July in relation to alleged abuse of the scheme.

The unnamed man from the West Midlands, according to details obtained by The Revenue, was arrested on July 8, in connection with claims of a £495,000 case of abuse. 

Now, HMRC has launched its main investigation into employers it suspects to have abused the scheme. Data collected by the body shows that cases of furlough-related fraud have risen to almost 7,000.

Investigations are focussed on businesses that deliberately, or inadvertently, allowed staff to work whilst on furlough and are in advance of new legislation that will introduce a 90-day amnesty for businesses.