Furlough scheme abuse

L’étranger

Well-known member
I’ve learnt today that a certain local businessman is putting staff on furlough and claiming the 80% grant whilst simultaneously employing them under a new contract in a related business.
It may be within the rules (?) but certainly against the spirit of them. Let’s hope such immoral characters get their comeuppance !
 
If that's within the rules then they've been drawn up very badly. 😖

Karma works, as all Seasiders know, and one day it will come and kick him up the arse.
 
I’ve learnt today that a certain local businessman is putting staff on furlough and claiming the 80% grant whilst simultaneously employing them under a new contract in a related business.
It may be within the rules (?) but certainly against the spirit of them. Let’s hope such immoral characters get their comeuppance !
Without knowing the full circumstances and HMG conditions, he may be committing criminal deception.
The reason the government have generously opened this scheme is to prevent individuals who would otherwise be laid off (furlough is an American name for it) from having no money etc. Hence if he's diverting staff to another business of his and they are therefore not in need of HMG support, it isn't honest and it isn't right.
The scheme is run via HMRC and therefore they'll be paying the 80% to companies based on the NI details and whatever other detail are required to be provided; therefore I would have thought HMRC would identify that are paying an individual who is also earning an income from within the same group of companies.
He'd be pretty naive if he hasn't checked all the conditions, but in any event it's against the spirit of the scheme.
We need to remember that today's young workers, the youth and their children (& beyond) will be paying this debt off and the UK doesn't have a money forest!
 
I’ve learnt today that a certain local businessman is putting staff on furlough and claiming the 80% grant whilst simultaneously employing them under a new contract in a related business.
It may be within the rules (?) but certainly against the spirit of them. Let’s hope such immoral characters get their comeuppance !
I wouldn’t have thought the rules allow you to furlough staff and re-employ the same staff at the same time under a new contract or not. Fraud.
 
...I would have thought HMRC would identify that are paying an individual who is also earning an income from within the same group of companies....

Not if he is paying them cash in hand (which might be an incentive for those workers not to blow the whistle). This feels very wrong.

I do like your point about this debt being handed down to our kids. So true. It will take a long time to recover.
 
I wouldn’t have thought the rules allow you to furlough staff and re-employ the same staff at the same time under a new contract or not. Fraud.
I understand they are being employed through a different, newly set up company, whose ownership is no doubt deliberately opaque, doing a similar job with little doubt over who has ultimate control.
 
I’ve learnt today that a certain local businessman is putting staff on furlough and claiming the 80% grant whilst simultaneously employing them under a new contract in a related business.
It may be within the rules (?) but certainly against the spirit of them. Let’s hope such immoral characters get their comeuppance !
If I were you I would get in touch with a decent newspaper and let them ask some questions. If this is true twats like this need exposing.
 
I’ve learnt today that a certain local businessman is putting staff on furlough and claiming the 80% grant whilst simultaneously employing them under a new contract in a related business.
It may be within the rules (?) but certainly against the spirit of them. Let’s hope such immoral characters get their comeuppance !

Mayhap you should let people know who the local "Business Man" is. This needs reporting if it's happening.
 
Pretty sure furloughed people are allowed to take work as certain key workers ie helping farmers/ growers fruit picking . If the company set up has key worker status it could be within the legislation.
 
Pretty sure furloughed people are allowed to take work as certain key workers ie helping farmers/ growers fruit picking . If the company set up has key worker status it could be within the legislation.
Furloughed workers can take any job they like
 
I understand they are being employed through a different, newly set up company, whose ownership is no doubt deliberately opaque, doing a similar job with little doubt over who has ultimate control.
Totally fraudulent activity then and should be reported.
 
You can’t work for same employer although you can work for another one. Receive salary from new employer plus your 80% from old one . Seems nuts. Whole point was to prevent redundancy. What happens after end of furlough, who do they work for ?

I’m sure when the origjnal rules came out you could only do voluntary work if on furlough.
 
I’ve learnt today that a certain local businessman is putting staff on furlough and claiming the 80% grant whilst simultaneously employing them under a new contract in a related business.
It may be within the rules (?) but certainly against the spirit of them. Let’s hope such immoral characters get their comeuppance !

HMRC hotline: 0800 788 887 or fill out the form online anonymously or name them on here and the Civil Service workers on here will.

If this is true, they will find out and action will be taken. Afterall, he's not defrauding the workers, he's defrauding all us taxpayers which we will have to make up for.
 
We have a Jobkeeper scheme here in Oz which is already being abused.
The employee gets $1500 a fortnight regardless of what they USED to earn and this is paid to them from their employer who then reclaims it back from the tax office.
Typically, with Australian politics, not a lot of thought went into this scheme. A number of, ahem, fraudulent actions have already been sussed out including;
1) Mates getting together and one of them being self employed and claiming that his/her mates are working for them. They claim the money from the tax office and split the proceeds.
2) Employers ringing up PAST employees and getting them to agree that are still employed by them and splitting the money with them.

Where there's an illegal way/loophole, an Aussie will find a way.
Bloody penal colony!
 
A furloughed worker can take any employment elsewhere as long as the income is declared. They can not do any work whatsoever for the employer who has furloughed them.
 
The way these (generous but necessary) schemes have been rolled out, and at the speed they've been rolled out, many are going to take advantage of them for fraudulent means - because they can.

The Bounce Back Loan goes live on Monday for small businesses.... 100% guaranteed by the Government... fill yer boots 🤦‍♀️
 
I’ve learnt today that a certain local businessman is putting staff on furlough and claiming the 80% grant whilst simultaneously employing them under a new contract in a related business.
It may be within the rules (?) but certainly against the spirit of them. Let’s hope such immoral characters get their comeuppance !
So if you’ve “learnt today” and you have hard evidence of this businessman committing an offence then shop him plain and simple.

I wouldn’t come on here telling the world as your playing a very dangerous game.
 
Last edited:
You can’t work for same employer although you can work for another one. Receive salary from new employer plus your 80% from old one . Seems nuts. Whole point was to prevent redundancy. What happens after end of furlough, who do they work for ?

I’m sure when the origjnal rules came out you could only do voluntary work if on furlough.
That's the rule if work undertaking work for the same company - and even that is limited
 
I’ve learnt today that a certain local businessman is putting staff on furlough and claiming the 80% grant whilst simultaneously employing them under a new contract in a related business.
It may be within the rules (?) but certainly against the spirit of them. Let’s hope such immoral characters get their comeuppance !
The facts can be reported anonymously to the HMRC confidential information line and they'll do the rest. I too believe reporting this greedy individual is morally the right thing to do. As I've said in the thread - our children, their children and their children will be paying this debt off.
 
Back
Top