It has been recently reported that the Government is set to hand tax officials draconian new powers to pursue the claw back of hundreds of millions of pounds representing falsely claimed furlough and Covid-19 business grant payments.

These new powers to be exercised by HMRC could result in Directors and Companies facing Criminal Prosecution.

Kangs Solicitors has a specialist Tax Team possessing a wealth of experience in representing Companies, Directors and other Individuals in respect of both civil tax investigations and criminal tax investigations and prosecutions.

We are well recognised by the leading law directories, the Legal 500 and Chambers & Partners, for our work in relation to financial fraud.

For an initial no obligation discussion, please call our Team at any of our offices detailed below:

HMRC and the Treasury’s Job Retention Scheme (JRS) | White Collar Fraud Solicitors

JRS was first launched in April to assist employers pay the wages of staff who would otherwise face redundancy. This scheme involved the Government subsidising up to 80 per cent of an employee’s wages, capped at £2,500 a month.

Amongst other requirements, employers are required to ensure that employees placed on the scheme are instructed to cease all work related to their employment.

New Tax Penalty for Companies | Tax Solicitors

It would appear that HMRC believes that some Companies may be usurping JRS and have breached the rules of the scheme.

Draft legislation, which will afford HRMC new powers, is expected to receive Royal Assent next month. Once passed any business or individual that has received money from the JRS, will have thirty days to submit a declaration confirming a mistaken application. That company or individual will then be required to refund the furlough money and, in so doing, a financial penalty will be avoided.

If, however, HMRC, having considered filed accounts, suspects that an incorrect claim has been made that has not been declared, it will launch an investigation into that Company or Individual who will be required to prove that Covid-19 support payment rules have not been breached.

Failure to satisfy HMRC, will result in HMRC requesting the refund of the monies PLUS a tax charge of 100% on those payments.

Fraudulent Furlough Payments | Furlough Criminal Defence Solicitors

If HMRC concludes that a Company or Individual has breached the rules of JRS and have thereafter failed to refund the money and pay the penalty, Criminal Prosecution against the Company, and possibly the Director(s), for false and/or misleading applications may be pursued.

How to Contact us | Kangs Solicitors

Hamraj Kang leads an award-winning team of solicitors nationally reputed for its excellence in fraud related work.

We welcome new enquiries by telephone or email.

Our team of lawyers is available to meet at our offices in London, Birmingham or Manchester or, alternatively, we are happy to arrange an initial no obligation meeting via telephone or video conferencing.

For initial enquires please contact:

Hamraj Kang
07976 258171 | 020 7936 6396 | 0121 449 9888

Helen Holder
020 7936 6396 | 0121 449 9888

Tim Thompson
0161 817 5020 | 0121 449 9888