Two people have been arrested over a suspected £3.4m furlough scheme fraud.
Both were held on suspicion of cheating the public revenue, VAT evasion and money laundering. They have since have been released under investigation.
It covers up to 80% of an employee’s salary for the hours they cannot work, up to a maximum of £2,500 per month.
Janet Alexander, director of the HMRC’s Taxpayer Protection Taskforce, said the vast majority of employers had used the scheme responsibly.
She said anyone concerned their employer may be abusing the scheme should report it.
More than £61bn has been claimed through the CJRS, supporting 1.3 million employers and 11.5 million furloughed jobs.