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
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
HMRC has issued 11,000 people with letters questioning their claims for self-employment support grants. Last year, the UK’s tax authority sent 24,000 similar letters to claimants who said they had stopped trading. Letters have been sent to those who said they had stopped trading either on their 2019/20 self-assessment tax return or by amending their
HMRC has lost the long-running tax case involving the employment status of TV presenter, Kaye Adams. The decision was finalised following an Upper Tribunal, which stated that she was not an employee for the BBC and therefore IR35 rules do not apply. The BBC required Adams’ services as a presenter on the Kaye Adams Programme,
Over the past year, HMRC’s investigations into online sellers using platforms such as Amazon and eBay, decreased drastically amid concerns over tax evasion. Tax evasion from online sellers has been a concern for HMRC as VAT evasion by overseas sellers on online platforms has cost HMRC up to £1.5billion in lost tax revenue in 2015/16
Five international tax enforcement leaders known as the Joint Chiefs of Global Tax Enforcement or J5, have formed an alliance to combat tax evasion. The J5 includes, the UK, the US, Australia, Canada and the Netherlands. The leaders meet on a yearly basis to collaborate on tackling common tax evasion issues. This year the meeting
Off-payroll working (IR35) rules will be changing on 6th April 2021. From this date the rules will change regarding how companies engage with individuals through personal service companies. Under the new IR35 rules it will be the employer’s responsibility to assess the individual’s employment status. This change will affect all medium and large sized businesses,
HMRC has recently published a list of employers who have made a claim under the Coronavirus Job Retention Scheme. The list represents those employers who have claimed for periods in December 2020. As of February 2021, HMRC will publish a list of employers claiming under the scheme along with an indication of the value being
HMRC have increased the number of investigations into families who claim child benefits. Introduced in 2013, the High Income Child Benefit Charge, requires higher earners, of more than £50,000, to pay back a percentage of their child support payments. For those who earn over £60,000, the entire amount must be repaid. This is based on
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.
HMRC has published a list of 139 employers who failed to pay their employee’s minimum wage. During 2016 to 2018, HMRC discovered 139 companies had failed to pay a total of £6.7 million to over 95,000 employees. The most common reason for minimum wage breaches was employers expecting low paid staff to cover work costs,
HMRC are investigating large companies who they believe could be wrongly paying less UK tax, due to their cross-border financial arrangements. HMRC have started a criminal investigation into businesses that allocate their profits between different countries, in connection with transfer pricing. Transfer pricing can legally allow for connected companies to minimise their tax liabilities by
In recent months, HMRC has been investigating fraudulent Research and Development (R&D) tax relief claims. In November 2020, HMRC arrested three men involved in a fraudulent tax relief claim for £29.5 million. Through one of the individual’s companies, the three men tried to acquire tax relief on £137 million, for the purposes of developing a
