AIBU to report my company to HMRC?

[leftonmytodd]

Used an old one off name for this as my regular names have outing posts.

My company has been submitting fraudulent furlough claims for clients - I am intending to report them and they will know it's me but as I am intending to leave soon should I wait until I have left (could be another month or so) or report now?

If it makes any difference the amount fraudulently claimed will be in the region of 2 million pounds (a lot of clients fudging their February payroll).

YABU - wait until I leave

YANBU - report now

I have handed in my notice due to the dubious practices of the company & made sure that I took copies of evidence before I handed that in just in case they revoked my access.

It’s a bookkeeping company who also do payroll - I’m not even sure who the governing body would be. I know they’re not members of CIPP or AAT & no one in the company has any professional qualification in payroll or bookkeeping.

I will definitely report - will do some more investigation into where to report tomorrow (today).

Report directly to HMRC, they'll know what to do and good for you for doing the right thing

Report it.

How do you know the claims are fraudulent? I have worked at a payroll bureau - I had no idea of the inner workings of my clients. I just received figures.

Good for you for taking such a strong stance. I will reiterate my advice about contacting protect-advice.org.uk/ - they have a phone helpline. You are doing absolutely the right thing.

(Posted too soon) I have been in your shoes, and after much agonising and trying to get my organisation to rectify a wrongdoing, I had to report them to the regulator. I ended up leaving as well, as i felt my MH was suffering as the regulator took a long time to deal with the issue - but I never had any doubts that I'd done the right thing.

@Merryoldgoat there are clients with employees who are furloughed & not with furloughed employees sending me emails regarding payroll for non furloughed employees as they usually do as part of their role.

I have emails which clearly state "please increase wages to £3,125 as of 1st February in order to maximise/take full advantage of furlough claim" when the employee is question was on barely more than NMW in January.

I've had to amend various payrolls & send additional RTI's for February due to over 150 clients requesting changes to be made as soon as the maximum amounts were announced.

I have asked my employer to advise these clients that they cannot do this but the attitude I get is "oh well it's their problem if they get caught".

I get a lot more information than just figures.

You always get someone who thinks up a bloody scam
No wonder the uk is in a mess financially, with greedy people

I’d bloody do it, you could do it anonymous
HRMC have a special section for fraud
Compliance

Goodness me - that’s outrageous! Definitely report. To be honest I suspect the RTI changes will flag something.

I did our furlough claim and we have been so careful; told people they can’t work, maintained spreadsheets of when people are on and off and only claiming retrospectively to ensure nothing incorrect is put through.

Please do report. You are definitely doing the right thing.

I have heard many stories from other accountants whose clients have tried to do this. It is plain fraudulent.

Thankfully none of my clients have tried it but they would get short shrift if they did.

Well done OP.

I've just had Protect's (the whistleblowing charity's) monthly e-newsletter and they have had their busiest month in terms of calls to their support line... the main reason people are calling is abuse of the furlough scheme. I hope you reported OP, this scheme is amazing, but I am so disappointed that it is being taken advantage of.

Just an update

I have reported but they have independently had requests from HMRC for the documentation relating to a few clients furlough claims (3 of which are definitely fraudulent) which have been flagged for spot checks as the amounts seem higher than expected. And one of their largest clients have given notice to terminate their contract due to the way this has been handled & the incorrect/fraudulent advice they have been given.

I have now left but start a new job in 2 weeks with a salary increase of £10,000 so it has worked out ok for me.

It’s not just employers deliberately misleading HMRC though is it? My employer (for example) puts in the furlough claim every 3 weeks as we were instructed to and in the fourth week the furlough pay comes in but the amount is more than double what we’re clamining for. Boss doesn’t know why it’s happening but said as long as HMRC are stupid enough to make these mistakes he will keep accepting their money 😐😕 I have tried telling him about furlough fraud etc but he’s completely unbothered.

Report it - don’t be complicit in a crime. I suspect genetally once redundancies start to be made in various companies, HMRC are going to be inundated with information about such frauds, which I think have been very common.

Sorry just seen your update. Great -good luck in new job

@Clevererthanyou

It’s not just employers deliberately misleading HMRC though is it? My employer (for example) puts in the furlough claim every 3 weeks as we were instructed to and in the fourth week the furlough pay comes in but the amount is more than double what we’re clamining for. Boss doesn’t know why it’s happening but said as long as HMRC are stupid enough to make these mistakes he will keep accepting their money 😐😕 I have tried telling him about furlough fraud etc but he’s completely unbothered.

From July they're suggesting claims are made in the same cycle as your payroll.

You also need to show the incoming amounts on your accounts & obviously the outgoing wages, PAYE & pensions - I think it's at this point many employers will be caught out if they're claiming more than they are paying out.