HMRC accused of ‘ignorance and inaction’ over £6bn Covid fraud

Public accounts committee chair Rachel Reeves condemns tax authority after billions written off

HM Revenue & Customs has been accused by an influential group of MPs of “ignorance and inaction” on recouping £6bn of fraudulent Covid-19 support payments, drawing an angry backlash from the tax authority.

The public accounts committee (PAC), which monitors state spending, issued a litany of criticisms of HMRC, warning that money surrendered to fraudsters would ultimately add to the cost of living crisis engulfing Britain.

HMRC has effectively “written off” £4bn of Covid-related fraud.

Plans to recover fraudulent payments are “unambitious”.

This risks “rewarding the unscrupulous”.

Customer service at the tax authority has “collapsed”.

HMRC is not doing enough to crack down on tax avoidance.

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