Surge in whistleblower reports to HMRC from company employees

Whistleblower reports by employees to HMRC over suspected tax evasion and fraud by their employers have increased by 11% over the past year from 13 600 in 2020-21 to 15 100 in 2021-22 says multinational law firm Pinsent Masons. This is an even more significant rise when compared with 2019-20 when 8 900 reports were recorded. Pinsent Masons says this increase is likely to be largely attributable to the number of cases of furlough fraud reported by employees and former employees since the start of the pandemic.

Some 5 800 (38%) of the reports made this year were deemed serious enough to warrant further action by HMRC.

Andrew Sackey tax fraud investigations partner at Pinsent Masons recommended that any business which discovers workers may have been persuaded or permitted to work while furloughed should take legal advice immediately about reporting this to HMRC. Directors who have been party...