Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Regarding the COVID-19 support schemes, we asked HMRC whether it had estimated the level of...
Conclusion
Regarding the COVID-19 support schemes, we asked HMRC whether it had estimated the level of fraud and error in the Eat Out to Help Out scheme considering the scheme had ended at the end of August. HMRC confirmed to us that it did not yet have an estimate of the level of fraud and error.75 It explained to us that, while it had made three arrests so far for fraud, its compliance work had been affected by the fact that restaurants had to go back into a lockdown. It has identified high-risk cases, for investigation, where the amounts of the received claims have not been in proportion to the information the Department holds on the businesses.76 In the case of the CJRS measure, HMRC has made a planning assumption for its compliance work that there could be 5% to 10% of fraud and error. It has yet to determine the actual level of fraud and error.77 73 Qq 97, 99; HM Revenue & Customs Annual Report and Accounts 2019–20, The Resource Accounts: Certificate and Report of the Comptroller and Auditor General to the House of Commons, HC 891, 5 November 2020 74 Qq 92–93 75 Qq 31, 33 76 Qq 28, 34 77 Q 43; C&AG’s Report, Implementing employment support schemes in response to the COVID-19 pandemic, Session 2019–2021, HC 862, 23 October 2020, paragraph 19 HMRC performance 2019–20 19
Government Response
Acknowledged
HM Government
Acknowledged
6.6 The government agrees with the Committee’s recommendation. Recommendation implemented 6.7 The department will not have a complete assessment of the total fraud and error for the CJRS until the end of 2021 at the earliest. This is because the department requires most of the cases selected for CJRS random enquiry to be closed before a final assessment can be made. 6.8 For the SEISS, the department requires the 2020-21 Self-Assessment returns to be filed in order to produce a firmed-up estimate for the current phases of the scheme. 6.9 The department’s plans to recover funds from those who have abused CJRS and SEISS are set out in its post-payment compliance approach – identifying cases via risk profiling, contacting many via one to many approaches and following up on those who do not respond, or whose response needs further investigation. This approach will be kept under review and adapted as necessary to effectively address fraud whilst not over burdening compliant claimants.