Brewster Partners Sheffield: HMRC asked to investigate city firm for alleged furlough fraud

A Sheffield-based recruitment firm could be investigated by HMRC over allegations furloughed staff were told to carry on working and lie about it.

Tuesday, 9th November 2021, 1:55 pm

Brewster Partners has been accused of encouraging staff to “voluntarily work” despite being on the furlough scheme in the early months of the first lockdown.

If they did, it would be in breach of the scheme’s rules, which at the time did not allow furloughed employees to work while claims to supplement their salaries were made.

The company’s managing partner, Nigel Brewster, also serves as vice-chair on Sheffield’s Local Enterprise Partnership.

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Brewster Partners could face an investigation by HMRC over allegedly encouraging staff to carry on working during furlough in breach of rules.

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Now, the former chairwoman of the public accounts committee, Dame Margaret Hodge, has written to HMRC asking them to investigate the company.

It comes after joint investigation by The Times newspaper and BBC File On 4 into the allegations.

Brewster Partners reportedly received at least £70,000 in furlough between December 2020 and June 2021.

Sheffield City Region LEP vice-chair and managing partner of Brewster Partners Nigel Brewster.

It is estimated that based on the number of people working at the company last year, it could have claimed as much as £500,000.

A spokesperson for the company said it “categorically denies any wrongdoing”.

The Government’s furlough scheme funded 80 per cent of normal salaries when employees could not work.

It is feared that the job protection scheme was widely abused, with HMRC estimating that up to £3.5 billion could have been lost to furlough fraud up to August last year.

Sir Nigel Knowles. Picture by Shaun Flannery/shaunflanneryphotography.com.

The Times reported today (November 9) that it had seen records of meetings that appear to show staff being asked to delete LinkedIn posts and to lie if asked by external parties whether they were being furloughed.

Senior staff at Brewster Partners, a company of around 40 people with offices in Doncaster, Sheffield, Leeds and London, allegedly told staff on Zoom calls they could “choose to work” while furloughed, and did not want to “cut people adrift” by not letting them work.

The Times reports that staff were allegedly to delete LinkedIn posts and lie to others about working.

A spokesperson for the company said the allegations had been made by disgruntled former staff and it had commissioned legal firm Knights PLC to investigate the matter.

The company said letters had been sent out in April instructing furloughed staff not to work.

Editor’s note: A previous version of this story said Brewster Partners chairman, Sir Nigel Knowles, was also a senior member of Sheffield’s LEP. Sir Knowles stepped down from this role in 2019. This article has been updated to reflect this.