HMRC must do more to recover overpaid support cash

The Treasury and HMRC acted quickly to put the Covid-19 employment support schemes in place but were too slow to target more accurately support to those in genuine need and tackle error and fraud says a new report from the House of Commons Public Accounts Committee.

MPs say that levels of unrecovered error and fraud are far too high and note that HMRC has had little success in recouping the £2.3bn incorrectly paid to employers claiming furlough for employees who continued to work. Further it is winding up the taxpayer protection taskforce without recovering the money expected.

The committee says HMRC must send a clear message that it is committed to recovering fraud on these schemes through its tax compliance enquires and urgently increase the rate of repayments from those who overclaimed including pursuing and penalising those who made fraudulent claims.

It...