Furloughed - Company Activity

[dx4100]

Coronavirus Job Retention Scheme. I see it quite simple. I'm tempted to lay myself off as an employee of my Ltd because the impact of the Coronavirus on the contracting market and wider economy is such that there is **** all out there and isn't likely to be for the foreseeable. The scheme could stop me doing that. But the issue I see is that if I were to be furloughed, how the hell can I pitch for business? When the lockdown is eased, am I allowed to jump on a train to London for those face-to-face meetings that could lead to coming off the scheme?

Simply don’t pitch for business...

It wouldn’t stop you looking for a perm job or inside ir35 via umbrella.

I don’t agree with many comments made by others on this thread. All this “in the spirit” stuff is all personal interpretation. I agree with your view that your Ltd is current affected by there basically being zero chance of landing a gig during lockdown.

All that matters is the legislation and the application form. We won’t have clarity until then if it’s a goer or not.

[dx4100]

You both think doing that is in the spirit of the scheme? Furloughing yourself, getting 80% of your Ltd company salary from the government, and then taking on another gig via another vehicle?

Really?

Why not go one step further and create another Ltd company any put the new work through that (assuming the engagement allows PSC's) and bask in loverly those dividends.

It’s actually in the rules you can do that. Why not give them a read.

If your employee has more than one job
If your employee has more than one employer they can be furloughed for each job. Each job is separate, and the cap applies to each employer individually.

Employees can be furloughed in one job and receive a furloughed payment but continue working for another employer and receive their normal wages.

Claim for your employees' wages through the Coronavirus Job Retention Scheme - GOV.UK

I have no doubt more details will come, this page keeps growing, but this indicates it’s a possibility.

[oliverson]

Someone put it rather nicely. You look for work for yourself. Once you've got it then you decide whether to introduce the company depending on the circumstances. Your next gig might be sole trader or brolly so not company business until contracts drawn up between the business and the hiring body.

I originally thought gig hunting was part of the sales and marketing of your company but looking at it as per the above is totally feasible.

So, you're telling me I can charge an introduction fee to my Limited company? I like it a lot!

I'm also the director of another Limited company that is currently dormant. Might be worth putting the next contract through that one and milking the CJRS for the furlough on my original Ltd.

[northernladuk]

So, you're telling me I can charge an introduction fee to my Limited company? I like it a lot!

I'm also the director of another Limited company that is currently dormant. Might be worth putting the next contract through that one and milking the CJRS for the furlough on my original Ltd.

Yep that's gonna work...

[Batcher]

Got an email from HMRC tonight:

Dear customer,

We want to help you get ready to make a claim under the Coronavirus Job Retention Scheme.

If you’re eligible for the scheme, there are things that you can do now to be ready when the system is up and running later this month.

You’ll need to provide the following to make a claim:

The bank account number and sort code you’d like us to use when we pay your claim.
The name and phone number of the person in your business for us to call with any questions.
Your Self-Assessment UTR (Unique Tax Reference), Company UTR or CRN (Company Registration Number).
The name, employee number and National Insurance number for each of your furloughed employees.
The total amount being claimed for all employees and the total furlough period.
If you use an agent who is authorised to act for you for PAYE purposes, they will be able to make a claim on your behalf, so please speak to them now.

However, if you use a file-only agent (files your RTI return but doesn’t act for you in other matters), they won’t be able to make a claim for you and you’ll need the information listed above from them to make the claim yourself.

For more detailed advice, please visit GOV.UK. This guidance is being regularly updated, so please review it frequently.

You may also find this recorded webinar helpful, 'Coronavirus (COVID-19) Job Retention Scheme', available on HMRC’s YouTube channel.

We’ll email you again in the next few days with more details on how and when to access the online system – please do not try to do this until we let you know it is available.

We wish you all the best at this challenging time,

HMRC Customer Services

[electronicfur]

Can a furloughed director be paid a dividend?

My company's income has stopped due to COVID, but still have some outstanding income due end of May that I'd want to take as a dividend.

[northernladuk]

Can a furloughed director be paid a dividend?

My company's income has stopped due to COVID, but still have some outstanding income due end of May that I'd want to take as a dividend.

A couple of points to go through but having a proper understanding of exactly how your company works etc would have helped.

Firstly. You can't furlough a director. If the company exists the director had legal responsibilities. The employee is furloughed. It's still you but a key distinction. You can carry on with your director responsibilities but can't do any work.

Share holding has nothing to do with being a director or an employee. I have shares in Microsoft but naff all to do with them. If the company is issuing a divided you get it if you are furloghed or not.

Dividend declaration is within the directors responsibilities so thets fine as well. I believe if want to be uber pedantic you could argue the transfer of funds from company to personal could be considered company activity so not allowed during furlough but that's getting a bit silly so don't think it's an issue.

Just be careful if things get right though. You must make sure you are only declaring dividends from profit. You can't divi out your tax money just because you are running out. That would be an illegal dividend.

[electronicfur]

A couple of points to go through but having a proper understanding of exactly how your company works etc would have helped.

Well yes, I understand exactly how it works. I obviously meant furloughed employee.

I was wondering if there are restrictions on the dividend payments companies can make to employees they have furloughed. In the same way they forced banks to forgo dividend payments to their shareholders.

[northernladuk]

Well yes, I understand exactly how it works. I obviously meant furloughed employee.

I was wondering if there are restrictions on the dividend payments companies can make to employees they have furloughed. In the same way they forced banks to forgo dividend payments to their shareholders.

So it appears you don't. Dividends don't go to employees, they go to shareholders. If you can understand that you will know the answer.

BTW there is new guidance just come out that contradicts what I said. It appears they are using the term furlough directors

https://www.contractoruk.com/forums/...st2758742.html

But that would have confused you more so keep it in your head a directors activities can continue where a worker cant.

[electronicfur]

So it appears you don't. Dividends don't go to employees, they go to shareholders. If you can understand that you will know the answer.

BTW there is new guidance just come out that contradicts what I said. It appears they are using the term furlough directors

https://www.contractoruk.com/forums/...st2758742.html

But that would have confused you more so keep it in your head a directors activities can continue where a worker cant.

I do. It appears you seem intent on thinking I don't...

Employees can be shareholders. The government could easily object to supporting companies who are furloughing employees but paying out dividends to them. Hence my question.