HMRC told MP’s on the Public Accounts Committee it estimates that 5-10% of furlough has been wrongly awarded, with the latest data showing the programme has cost the Government £35.4bn so far.
So far, 8,000 calls have been received to HMRC’s fraud hotline.
The furlough scheme had paid 80% of wages for the workers placed on leave since March due to the coronavirus outbreak.
Employers are being urged to check their claims and repay any excess amount back to HMRC.
As it stands HMRC are now looking into 27,000 ‘high risk’ cases where they believe a serious error has been made in the amount an employer has claimed.
A government spokesman said: “In Covid-19, we are using every tool and piece of intelligence to prevent, detect and disrupt fraud. Where it still gets through, we are finding and pursuing those who commit it.”
He added the government had committed to “extensive post payment reviews of stimulus and support payments, to find fraud and recover money for the taxpayer”.
HMRC is writing to employers to root out fraudulent CJRS claims and those abusing the system. The first letters landed on employers’ doormats on 18 August.
Source: BBC News