Commons Committee: HMRC is ‘soft on furlough fraud’ but ‘raids’ pensioners

Political Decisions

A Financial Times editorial reports that due to the loss of billions in taxpayers’ money government has been under increasing scrutiny.

MP Meg Hillier, PAC chair

The House of Commons public accounts committee (PAC) criticised HM Revenue & Customs in a recent report which set out concerns with “HMRC’s fulfilment of its most basic remit of collecting tax owed”.

MPs on the committee said HMRC was potentially “writing off” £4bn lost because of fraud and mistakes in relation to Covid support packages, concluding:

“Such inaction risks rewarding the unscrupulous and sending a message that HMRC is soft on fraud”.

Easy targets – the low hanging fruit

A tougher approach is taken with pensioners who don’t employ a team of lawyers and accountants

For five years HMRC has vigorously pursued pensioners for relatively small sums – sometimes due to faulty algorithms, data entry mistakes or even failure to add up six…

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