2021 is expected to show a huge increase in fraudulent offences, a sad knock-on effect of the pandemic. This is not only being committed by organised crime gangs but by seemingly legitimate companies.
The UK government has seen a further increase in business fraud, especially with the introduction of the job retention scheme (JRS), furlough scheme and the scheme for the self-employed income support scheme (SEISS).
In September last year, HMRC stated that an estimated £3.5 billion – with the number ever-increasing – may have been fraudulently claimed or paid out in error. The true cost of this activity will not be known until at least the end of 2021.
Investigations have revealed the extent of fraudulent claims from employers such as companies that claimed on behalf of staff that no longer worked for the company. These included those on maternity leave or in receipt of statutory sick payments. The remittances were not passed on to staff as they continued to work, not knowing that their employer had submitted JRS claims for them.
HMRC has come under criticism for not publishing a list of employers who have claimed JRS. Pressure has been mounting from both employees and the press to name and shame companies. This would help to prevent any further cases of false claims.
