Billions Lost in Taxpayer Money Due to Fraud and Errors
Government Schemes Under Scrutiny
Tax schemes intended to stimulate economic growth have resulted in significant losses due to fraud and errors. The UK tax authority, Her Majesty's Revenue and Customs (HMRC), has disclosed that £41 billion has been lost in business tax schemes since 2020.
COVID-19 Support Fraud
Furthermore, an estimated £45 billion in COVID-19 support has been fraudulently claimed or lost to errors since 2020. This revelation underscores the challenges faced by tax authorities in preventing and detecting fraudulent activities.
Government Response
The government has expressed concern over these losses. The Labour government has acknowledged that its goal of increasing economic growth to 2.5% is unlikely to be met due to the significant financial losses incurred by these schemes.
Research and Development Schemes
One particular scheme, designed to encourage research and development, has lost billions to fraud and errors. HMRC has attributed this to insufficient oversight and inadequate safeguards against abuse.
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