UK businesses told to review COVID-19 claims as UK cracks down on fraud

LONDON, March 3 (Reuters) - British businesses were on
Wednesday urged to review how they claimed for government
support during the coronavirus pandemic as the country launched
a 100 million pound ($140 million) taskforce to tackle fraud.

Britain's spending watchdog said last October that companies
may have fraudulently claimed up to 3.9 billion pounds in public
money by accepting funds from schemes such as salary support
packages while ordering furloughed staff to continue working
during national lockdowns.

Unveiling the Taxpayer Protection Taskforce in Wednesday's
budget, Finance Minister Rishi Sunak said the new body would
investigate, prosecute and recover unlawfully claimed payments
through schemes such as furlough and the Self-Employment Income
Support Scheme (SEISS).

"Businesses concerned they are in the 'mistake' category
should review those claims as a matter of urgency...," said
Sarah Wallace, a partner at Constantine Law.

Dawn Register, head of tax dispute resolution at
professional services group BDO, said catching tax cheats was a
key part of the government's plan to repair public finances as
the economy has seen its biggest crash in over 300 years.

"This is a serious ramping up of resource and will add
important credibility to (tax authority) HMRC's role as tsar of
furlough fraud," said Nicola Finnerty, a partner at law firm
Kingsley Napley.

"Those who think these (discrepancies) will most likely fall
under the radar should perhaps think again. There may be civil
or criminal consequences."

The government said its taskforce would have 1,265 HMRC
staff. It also plans to strengthen rules around its "bounce back
loan" programme, aimed at helping businesses survive the
pandemic.
(Reporting by Kirstin Ridley; Editing by Nick Macfie)