Businesses that fail to report overclaims in coronavirus job retention scheme grants run the risk of personal liability, HMRC action and potential criminal proceedings, warns Nexa Law’s Steven Mather
While the government’s financial schemes have been a real help to many businesses during the coronavirus pandemic, fraudsters are quick to find ways to take advantage. The Coronavirus Job Retention Scheme (CJRS), known as the furlough scheme, is no exception and along with other financial support such as the Business Bounce Back Loan Scheme (BBLS), is opening up a whole new risk of prosecution to business owners.
It was recently reported that HMRC arrested a West Midlands businessman as part of an investigation into a suspected £495,000 CJRS fraud. Although he was also arrested on the basis of tax fraud and money laundering offences, HMRC said it was the first arrest in respect of furlough fraud.
