Official HMRC tax receipts data shows that penalties from compliance work dropped significantly in 2020 as HMRC diverted resources to coronavirus support schemes. Receipts from penalties fell from £59m in January to a low of £21m in May, before picking up again in November.
Professional fee insurance firm PfP notes that, with HMRC’s own estimates suggesting up to £3.5bn may have been fraudulently claimed or paid in error via the job retention scheme, HMRC is now targeting potential cases of fraud, alongside its increased focus on core areas of tax investigation work. With the furlough scheme extended to April 2021, PfP says there is likely to be an increase in the number of businesses that are investigated for potentially fraudulent claims.
Official HMRC tax receipts data shows that penalties from compliance work dropped significantly in 2020 as HMRC diverted resources to coronavirus support schemes. Receipts from penalties fell from £59m in January to a low of £21m in May, before picking up again in November.
Professional fee insurance firm PfP notes that, with HMRC’s own estimates suggesting up to £3.5bn may have been fraudulently claimed or paid in error via the job retention scheme, HMRC is now targeting potential cases of fraud, alongside its increased focus on core areas of tax investigation work. With the furlough scheme extended to April 2021, PfP says there is likely to be an increase in the number of businesses that are investigated for potentially fraudulent claims.
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