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Suspect fraud re Rental Income and furlough

Client claims that he employs spouse to collect rent

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A client who rents out 4 properties is claiming that he pays his wife £12500 a year and ofcourse now has to lay her off .

No chance of him getting the money as no paye scheme and clearly he will soon be an ex client but do I need to make a MLR.?

Hope that this will be an isolated case.

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By SXGuy
28th Mar 2020 08:20

I smell bs.

As you say she isn't eligible anyway.

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By Martin Schneider
28th Mar 2020 09:05

I don't think you need to do an MLR report just yet. You just need to explain he's not eligible as it only applies to PAYE salaries. If he then asks you to set up and backdate a PAYE scheme, different story.

Sounds like a good client to ditch anyway.

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By bernard michael
28th Mar 2020 09:09

Are you sure he's not indulging in the what -if scenario seeing what the system will allow ??

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By jcace
28th Mar 2020 10:31

You need to explain to the client that IF he's paying his wife £12,500 per year then he should have a PAYE scheme and be deducting NICs. Further, to take advantage of the CJRS the PAYE scheme needed to be in operation at 28 February with his wife also reported as an employee at that date and the salary to that date forming the basis for any claim.
His assertion falls down on so many levels.

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David Winch
By David Winch
28th Mar 2020 10:41

The client has not obtained any benefit (yet) from his (proposed) dishonesty. So no Suspicious Activity Report required (at present).

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By Anonymous.
28th Mar 2020 11:58


A client who rents out 4 properties is claiming that he pays his wife £12500 a year and ofcourse now has to lay her off .

Is this a new client? If it's an existing client, presumably you have seen the £12,500 pa being paid. If there are only 4 properties, it seems like the pay vastly exceeds a reasonable amount for managing/helping to manage 4 properties.

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By Tosie
28th Mar 2020 12:55

Could renting just four properties even be considered a business ? Pleased pubs are closed as no doubt our man in the pub will have an accountant who knows how to get around these silly little regulations.

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