What is the community’s view on a director of three residential property investment companies, and a small trading company managing residential property claiming furlough payments in the following circumstances? The director (being the only employee) claimed furlough for his salary in each of the investment companies despite the businesses not having been impacted by Covid. The management company continues to pay a salary and the three investment companies are my clients. I accept directors are able to claim furlough but on the basis that, in simple terms, the day-to-day business is no longer able to function or, for large businesses, runs at reduced capacity (without going into childcare or illness etc eligibility, none of which apply). However, in this case rent collection may have reduced if a tenant is struggling but overall I can’t see an impact to the business. I shall be grateful for readers’ views whether I should advise my client to repay the furlough money as my client believes that he has not breached the eligibility criteria.
4th Feb 2021
Furlough receipts by investment company director
Should I advise my director client to repay money claimed under the furlough scheme?
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