HMRC's use of account freezing orders rises 177% in 2019-20

HMRC has ramped up its use of new account freezing orders (AFOs) and forfeiture orders (FOs) to tackle suspected criminal behaviour according to law firm RPC.

Figures from a freedom of information request obtained by the firm show that HMRC issued 166 orders to freeze accounts in 2019-20 up 177% from 60 the previous year. In addition the total amount forfeited and the number of forfeiture applications have increased fourfold from the previous year.

The firm expects HMRC to use AFOs and FOs to seize money in accounts of suspected fraudsters relating to the government’s £350bn coronavirus stimulus package. Businesses suspected of abusing the coronavirus job retention scheme could have accounts frozen for up to two years.

RPC says that AFOs and FOs are powerful weapons in HMRC’s arsenal and enable it to seize the funds of suspected criminals and their associates. AFOs can be used for...