Coronavirus Job Retention Scheme
(asked on 1st June 2020) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what penalties are in place for people who have been found to have misused the Coronavirus Job Retention Scheme.
Those who submit claims to HMRC for payment under CJRS are required to state that any money paid by HMRC will be used for the specified purposes. Any claimant who states that the payment will be used for the proper purposes when this is not the case is likely to have committed a criminal offence.
In England and Wales, and in Northern Ireland, it is a crime of fraud, contrary to the Fraud Act 2006, dishonestly to make a false representation with intent to make a gain. Those who dishonestly state in their claims to HMRC that any money they receive under CJRS will be used for the specified purposes, when this is not the case, are likely to have committed fraud. Those who encourage or assist the commission of a crime can also be found guilty of the offence. Those who aid and abet another’s crime can also be convicted.
In Scotland, those who engage in a false pretence with an intention to deceive HMRC will commit a common law fraud. Such a false pretence could include saying that the payment under CJRS will be used for the specified purposes when this is not the case. Those who act in concert with the perpetrator of such crimes can also be convicted and punished.
In all parts of the UK, where claimants obtain payments from HMRC through fraudulent claims to the CJRS scheme, any money obtained would be the proceeds of crime. Any dealing with this fraudulent obtained money could amount to the offence of money laundering, contrary to the Proceeds of Crime Act 2002. The money laundering offences contrary to the Proceeds of Crime Act 2002 are punishable with a sentence of imprisonment of up to 14 years, a fine without limit, or both. Fraudulently obtained payments can also be recovered through the provisions of the Proceeds of Crime Act dealing with summary forfeiture of assets representing the proceeds of crime.
HMRC will subject CJRS claims to scrutiny and use their usual compliance tools to carry out proportionate risk-based compliance checks before and after payment to test the veracity of CJRS claims. HMRC will take robust steps to prevent fraudulent claims being paid, to recover any payments made to those who are not eligible, and to respond to those to make fraudulent claims. In doing so HMRC will protect essential public services and the livelihoods at risk during these challenging times.
In addition to the fraud powers outlined above, the Government has published for external views draft legislation that will enable HMRC to undertake civil investigations with appropriate powers and sanctions. These powers include compliance powers and proposed penalties for deliberate non-compliance, where appropriate. The draft legislation can be found at