The National Audit Office’s audit of HMRC found material levels of error and fraud in the COVID-19 support schemes, tax credits, corporation tax research and development reliefs: https://orlo.uk/iPkJF
The impact of the pandemic meant the amount of tax paid to HMRC dropped by £27.9 billion (4.4%) in 2020-2021.
HMRC needs to recover money paid through fraudulent furlough claims and restore tax compliance to pre-pandemic levels, says the NAO’s report..
Key findings:
• Error and fraud in the COVID-19 support schemes cost £5.8 billion.
• £5.3 billion of this relates to the furlough scheme.
• Error and fraud in corporation tax research and development reliefs cost £336 million.
