Coronavirus: Furlough will be a great scam for many businesses

The government pays 80% of a monthly salary (up to £2,500) [LINK].

While most businesses will one suspects be honest, one suspects many will not be.

For instance, a family business could very easily put most of the family on Furlough and get the government to pay them up to £3,500, while in fact the whole family carries on working and bringing in a big income.

So a family gardening business may still be going out, looking after gardens, and claim that only one member of the family is working, while everybody could be working.

So too we may find small businesses keep staff on working, but get the government to pay the wages. It is unlikely any employer will report there business as they will not want to get the sack. And even if they did, the business could simply say they were not telling the truth, and without evidence, there may be little that can be done.

HMRC launches furlough abuse hotline after companies exposed for abusing system [LINK].

The government is issuing grants of 80 percent of the salary of retained workers, up to a total of £2,500 a month.

However, there have been some reports which suggest certain employers are taking advantage of the scheme.

HMRC has acknowledged there are some people on furlough who are still being asked to work by their employers.

The non-ministerial department has warned companies caught attempting to cheat the system will be asked to repay any money owed.

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