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Protect seeks reassurance from HMRC whistleblowers reporting furlough fraud will not be penalised

Protect is seeking reassurance from HMRC that whistleblowers who contact the tax authority over furlough fraud will not be faced with paying back their employers’ fraud, or face prosecution if their employer forces them to work while on the scheme.

Calls to Protect’s Advice Line have seen record-high levels, with  more than 250 calls related to furlough fraud – the single biggest issue Protect has dealt with in its 27-year history. During the three-month lockdown, from March 23-June 23, our Advice Line has handled more than 1,120 calls.

Protect has recently responded to a HMRC consultation giving new powers to HMRC under the Finance Bill.

Head of Policy Andrew Pepper-Parsons said, “Our concern is the powers could be turned against whistleblowers and should be reserved for use against those who sign off the fraud. Whistleblowers have no say, let alone any power over the decision to be furloughed and face the prospect of dismissal if they then refuse to work while being on the scheme  If the Government can reassure directors that genuine mistakes over applying for the scheme will not be prosecuted whistleblowers should be given a similar commitment.

Many calls to Protect’s Advice Line on furlough fraud have been around whistleblowers own liability in relation to the fraud.  Much like the assurances given to directors that mistakes won’t be punished, we’d like to see this extended to whistleblowers.”

Protect statistics (as of June 15)

Top three industries (92% of which are from private sector)  are from :

Hospitality (20%)

Manufacturing (12%)

Retail (12%).

Of the furlough cases received -66% – have been from organisations with less than 50 staff.

Protect has also raised with HMRC officials concerns over the closure of HMRC’s fraudand if an alternative – such as a secure live chat option – could and will be provided for people who seek reassurance about reporting fraud. We appreciate some modest changes have been made to the website since Protect’s conversation but we would like more to be done.

“The other reassurance we seek-  and it is a big unknown – with so many reports being made to HMRC we would like to know a firm plan is in place to investigate the thousands of fraud reports received by HMRC” said Andrew Pepper-Parsons.

 

What a concerned worker can do if concerned:

Check the Government Guidance

Though the guidance has changed many times it is a good resource to look at what the Government have produced for workers, and what they expect from employers. This will give any concerned worker an idea of whether what the employer is doing breaches this or not.

Consider raising it first internally

Raising the concerns externally

If you do not feel that internal channels will be effective, or if you have already raised the concern internally, you can contact HMRC on their Fraud Reporting via their online form.  You can also contact Protect for advice through our online form or by calling 020 3117 2520