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AIBU?

Furlough fraud

11 replies

ivegotdreadfulpmttoday · 26/05/2020 11:16

A 80+ year old I know who is employed by his son's company in a grace and favour role (does no work at any time) has been furloughed. Both men are very well off (many millions, country pile etc).
AIBU to think this is taking the piss and wish I had a way to report it.

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TerrapinStation · 26/05/2020 11:25

Please do report although I'm not sure what rule has been broken, furlough fraud could potentially cost the taxpayers billion

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ivegotdreadfulpmttoday · 26/05/2020 11:31

I'm not sure a rule had been broken. But he usually does no work and he is still doing no work so his role hasn't been affected by Covid19.

Mainly it's just morally repugnant.

These people employ over 100 local workers many of whom are paid so badly they anyway have to rely on in work benefits to make ends meet in even in normal times.

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AvoidingRealHumans · 26/05/2020 11:34

Surely to receive the 80% of his usual salary there had to have been a salary in the 1st place along with proof of this?

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ivegotdreadfulpmttoday · 26/05/2020 11:34

I'm worried that if I report it then all the genuinely furloughed people who work there could suffer (e.g be made redundant now rather than at the end of furlough).

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GoatyGoatyMingeMinge · 26/05/2020 11:41

I doubt there's any fraud here if he has a job with the company, even one in which he does nothing.

As an aside, I don't really see what the advantage would be of the company paying him a salary to do nothing. Beyond the annual personal allowance (about £12k?) which the old man almost certainly has used up with income from other sources, salaries are not a very tax-efficient way of getting money out of a company. But I stand ready to be corrected.

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TeeBee · 26/05/2020 11:49

I don't see how you'll prove any wrong doing has taken place...if it has.
For whatever reason and whatever their agreement is, he is on the payroll. It could have been for past input into the company, or some random or minor thing that he does for them, who knows? Are you aware of the ins and outs of the agreement? He'll only be receiving up to £2500/month; do you think that is likely to fall short of what he usually receives? It may be turpitudinous but then a lot of tax law is.

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TeeBee · 26/05/2020 11:53

...and no doubt they'll argue he has to shield if he's over 80.

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Haffiana · 26/05/2020 11:56

A 80+ year old I know who is employed by his son's company in a grace and favour role (does no work at any time) has been furloughed. Both men are very well off (many millions, country pile etc).

You want to report them because they are rich. That makes you a bigot, doesn't it?

Good luck on finding the law that they have broken.

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FunnyInjury · 26/05/2020 12:08

Plenty of companies doing this atm. Partners/parents/children on payroll for tax reduction purposes and now on furlough.
They are all on either ni or tax threshold usually so not high salaries, but a definite tax avoidance tactic.

It is morally wrong imo, but no rules being broken 🤷‍♀️

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ivegotdreadfulpmttoday · 26/05/2020 13:42

I don't have anything against rich people but these ones in particular conduct themselves in a very greed is good thatcheresque way. They have never knowingly been generous and screw the wages of the staff to the penny.

I love the word turpitudinous.

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