HMRC launches 'Covid benefits' hotline to turn people in 'no questions asked'

HMRC has launched a new hotline to tackle Covid fraud including benefits, loans and grants given out during the pandemic which were claimed illegally.

The tax office has set up the whistle blowing website and phone number to allow people to dob in anyone they know who claimed Covid payments that they weren't entitled to.

HMRC says it's part of an amnesty which will also allow anyone to hand back the money they took without any repercussions, 'no questions asked'.

But if anyone who did take Covid cash illegally fails to turn the money back in during the voluntary repayment scheme, they could face prosecution next year when the government's new 'investigatory powers' are made law.

Anyone who took Covid benefits, loans, grants, social security or tax benefits they weren't entitled to has until December 2025 to hand the money back with no punishment.

HMRC said: "A voluntary repayment scheme will provide Covid scheme recipients with a 'no questions asked' window to repay outstanding money they were not entitled to or did not need.

"The move comes as the government continues to do everything in its power to recoup money lost to Covid fraud.

"Individuals who don't take this last chance to come forward and repay any outstanding money could face prosecution when the government receives additional investigatory powers next year.

"A Covid fraud reporting website is also being launched to allow members of the public to report suspected fraud."

All Covid schemes, including loans, grants, social security and tax benefits fall under the voluntary repayment scheme.

The Covid Fraud reporting website says: "Use this service to tell us if you suspect an individual or organisation may have committed fraud related to COVID-19 funds. Y

"You can choose to submit your report anonymously. There are no personal or legal repercussions if we find that no fraud was committed. Please answer the questions to the best of your knowledge, but do not put yourself at risk by attempting to gather further information. For your own safety and protection, only provide details you already know and avoid engaging with the individuals or organisations you are reporting."

The Government has been "dangerously flat-footed" in its approach to recovering nearly £2 billion in estimated taxpayer losses from the Covid bounce back loan scheme, one of the elements of Covid payments covered by this scheme, MPs warned in June.

The Public Accounts Committee (PAC) - comprised of cross-party MPs - criticised the lack of incentive for lenders to recover the money.

The bounce back loan scheme was set up in the early days of the Covid-19 lockdowns when businesses across the country were forced to close or faced a drop-off in demand.

It provided loans of up to £50,000 per business, and were available to most UK firms without the usual credit and affordability checks in order to be issued more quickly.

However, the Department for Business and Trade (DBT) estimated that total losses due to fraud on the bounce back loan scheme will be at least £1.9 billion - with the figure likely to be higher as not all fraudulent cases had been identified.