Although the government has been praised for the actions taken to support businesses and individuals through the Covid19 pandemic, (there being no real doubt that millions have benefitted), the BBC has today again reported on the scale of fraud and losses perpetrated by those seeking to take advantage of the situation for their own ends.
As previously discussed, the scale of cost and fraud to the Treasury is huge, it being estimated that
• up to £27bn could be lost as a result of fraud and credit losses on the Bounce Back Loan Scheme
• between 35% and 60% of Bounce Back Loans might not be repaid
• HMRC may not have a valid estimate of the cost of fraud and error in the furlough scheme until December of this year, almost 2 years since it began.
• more than £25bn was spent on the Self Employed Income Support and Eat Out to Help Out Schemes- an estimate of losses to fraud to be published in the HMRC Annual Report later in the year.
It is to be hoped that HMRC and other agencies take strong action to recover the monies so that they can be used to pay some of the horrendous costs to be funded over the coming months. After all, it is ordinary business owners and individuals who have borne the brunt of Covid19 and it is they who will continue to pay for years ahead.
All our news stories relating to the financial effects, including insolvencies and consequent debt are on our website: www.thfr.co.uk
Source: BBC News
At THFR we provide advice and services to business owners, Directors and sole traders, to help them resolve financial problems and stress. We assist and act in Creditor Voluntary Liquidations, Administrations – including Pre Packs, Company and Individual Voluntary Arrangements. We provide free consultations (not limited to the first meeting) to discuss your options and find the way forward that suits your needs. Call Jonathan on 01282 332222 for an initial chat or email info@thfr.co.uk