UK tax officials have seized £26.5m from non-existent businesses run by an ‘entrepreneur’ who used the Coronavirus Job Retention Scheme to make fraudulent claims. According to the Financial Times, the ‘entrepreneur’ who is believed to be a 44-year-old man, used four companies to create seven fake employees to gain access to furlough funds. To
With most restrictions ending in England, the furlough scheme continues to phase out from 1 August 2021. From this date, employers will be required to contribute more towards their employee’s wages for hours not worked. How much will employers contribute from 1 August? From 1 August to 30 September 2021, employers will be required to
The Financial Times has obtained data through a freedom of information act (FOI) request, which states that companies have repaid £709m from furlough claims that have been made under the Coronavirus Job Retention Scheme (CJRS). According to the data, an additional £319m has been reclaimed from companies that had mistakenly claimed the incorrect amount. As
Since the introduction of the furlough scheme back in March 2020, more than £60 billion has been claimed through the furlough scheme. Whilst the furlough scheme has been used to protect over 11 million jobs, there have been instances where the scheme has been exploited. Last month a couple from Yorkshire were arrested as part
Furlough Scheme – When do employers need to contribute? The furlough scheme was announced in 2020 as a means for employers to retain their staff during COVID-19. Under the furlough scheme, employees currently receive 80% of wages for hours not worked, up to a total of £2,500 a month. However, this is set to change
Earlier this month, HMRC launched a new taskforce of 1,250 staff to investigate fraudulent furlough claims and Eat Out to Help Out claims. Investigators will be cross-referencing claims under the furlough scheme with other records, such as the Eat Out to Help Out scheme. As part of HMRC’s investigations, a number of businesses have been
The furlough scheme has been a lifeline for businesses of all sizes throughout the coronavirus pandemic. However, many have exploited the furlough scheme by making fraudulent claims or failing to review their initial claim. According to HMRC data, mid-sized businesses claimed £9.49 billion through the furlough scheme, as of 31st January 2021. Research has found
Last year, the government introduced the official Coronavirus Job Retention Scheme (CJRS) to offer support for those businesses who have been forced to close during the pandemic. The scheme allows for employers to claim for 80% of employee’s wages for hours not worked. Unfortunately, furlough fraud has proven to be a widespread issue over the
Chancellor Rishi Sunak is said to be considering increasing corporation tax in the March Budget. Following the devastating impact from the coronavirus pandemic, the government now has an estimated £400bn deficit to pay off. The government has spent billions trying to support businesses and prevent job losses by introducing the Furlough Scheme and Business Support Grants.
The furlough scheme was launched in March 2020 in an effort to minimise job losses during the coronavirus pandemic. Under the scheme, employees will receive 80% of their wages, up to a total of £2,500 a month, off the government. At its peak in May last year, the furlough scheme was supporting 8.9 million jobs.
The UK Government has confirmed the Coronavirus Job Retention Scheme will be extended until the end of April 2021. The scheme was set to expire at the end of March 2021 but has now been extended for another month. Under the scheme, the government will continue to pay employees 80% of wages for hours not
HMRC has updated its guidance on the information published for employers who make a claim under the Coronavirus Job Retention Scheme (CJRS) from 1st December 2020. HMRC is providing this information in the hope that it will deter fraudulent claims. The new guidance includes the information that HMRC will publish on employers who claim under
Coronavirus Job Support Extended by Chancellor On 5th November 2020, the Chancellor announced in the House of Commons that he would be extending the Furlough Scheme and the Self-Employed Income Support Scheme, following the news of a second national lockdown for England. The Furlough Scheme was set to end in December 2020 however, it has
England is preparing to face another national lockdown following Boris Johnson’s announcement over the weekend (31st October ). The PM addressed the nation telling people they must stay at home from 5th November until 2nd December, when rules will be reviewed. All non-essential shops along with bars and restaurants will have to close however, schools
HM Revenue and Customs (HMRC) have told MP’s on the Public Account Committee it estimates that between 5-10% of furlough cash has been wrongly awarded, with the latest government figures indicating around £35.4bn having been paid out through the scheme, already the upper end of this estimate would leave £3.5bn having been paid out incorrectly.
From today (September 1) there will be changes to the way that the Coronavirus Job Retention Scheme (CJRS) makes payments to employers. What is changing? For the period from 1 September to 30 September the schemes grant will reduce from the previous 80% down to 70% of employees’ pay up to a cap of £2,187.50
Whenever any financial incentive or support is made available, scammers and fraudsters try their best to infiltrate the scheme and cheat the system in order to receive funds designed only for those in need of them. The Coronavirus Job Retention Scheme (CJRS) or ‘Furlough Scheme’ is no exception. The Coronavirus Job Retention Scheme The Coronavirus
