Whistleblower reports to HM Revenue and Customs (HMRC) have hit their highest level in five years as lawyers suggest the rise can be linked to a broadening sense of “public outrage”.
According to a freedom of information request from HMRC, fraud reports have surged by 47 per cent in the past year, jumping from 106,920 in 2021/22 to 157,270 in 2022/23. Overall, this year’s figure is the highest number reported in the FOI, which dates back to 2018.
Steven Porter, partner at Pinsent Mason states that the increase may be driven by the fact that “people’s own pockets are being stretched thin at the moment”. He thinks this may lead people to pick up the phone to “try and find justice” against those committing some sort of tax fraud.
“We are seeing more inquiries, more questions being raised and just a slightly more aggressive approach from HMRC to chasing things down,” Porter concluded.
Adam Craggs, a partner at City firm RPC added: “The furlough scheme was a magnet for fraudsters with significant sums lost in the public purse.”
“The general public is understandably outraged by that, and this sense of outrage may be a driver in this large increase in reports of suspected fraud to HMRC,” Craggs added.
It is estimated that between 3.2bn- 6.4bn was mistakenly given out through the UK’s Covid support schemes – either due to error or fraud.
John Barnett, partner at Burges Salmon explained that HMRC has been pushing their fraud hotline which is looking to be very “effective”.
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