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Furloughed - Company Activity

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    #41
    Originally posted by electronicfur View Post
    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.

    OK, let's try again:
    Companies can have directors. Companies can have employees. Companies can have shareholders.

    Shareholders get pay dividends.

    Employees get paid salaries.

    Employees can be furloughed.

    Shareholders might receive a different value of dividend, or could change the number of shares they own. You can't "furlough" shares or shareholders.
    …Maybe we ain’t that young anymore

    Comment


      #42
      I skimmed through this thread and didn't notice if anyone else had posted the HMRC webinar:

      Coronavirus (COVID-19) Job Retention Scheme

      Apologies if it's a duplicate.

      Comment


        #43
        Originally posted by WTFH View Post
        Shareholders might receive a different value of dividend, or could change the number of shares they own. You can't "furlough" shares or shareholders.
        The government could state companies who pay more than x% of their dividends to furloughed employees must suspend dividend payments. They forced banks to suspend dividend payments, so I wouldn't put it past them.

        But rather than rely on the condescending replies here, I've found the official guidance here:

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

        Note there is a whole section about furloughing company directors...

        No mention of dividends, so appears there are no restrictions.

        Comment


          #44
          Originally posted by Paralytic View Post

          I'd be interested in seeing what "proof" needs to be provided (if any) that the employee was furloughed due to Covid-19. In my view, there seems to be a lot of talk that it'll just be an simple application and the grant will be paid, but I'd expect there to be some level of proof required (although the page above really only mentions the chance of a retrospective audit).

          We've already seen multiple people who were out of contract prior to March (perhaps due to IR35?) and are hoping to jump on the Covid-19 bandwagon. It seems to me that the grant is for those employees who are out of a job due to Covid, whereas many contractors are hoping it will also apply to those that can't get a contract due to Covid. I'm not convinced it is intended to cover those latter cases.
          I'm about to test that out. I'm through an umbrella, and my contract ends Apr 17. The org is right in the middle of a major piece of work. I was asked to put together a work package for the next 4 months to underpin an extension until August. That got kicked back with the reason "we are not extending contracts at this point due to Coronavirus" The kicker is that part of my work is going to a contractor who was hired two weeks before lockdown (albeit to do something else) and part to a permie. I'm getting them to write that down as the umbrella seem willing to go down the line that it was a natural end to the contract and so what? Their argument presumably is that they have to front the 80% with no guarantee of getting it back.

          Comment


            #45
            Interesting point on chasing bills and so on. It would therefore mean you should chase any bills then "shut up shop" - if you need to remind about a bill you are (technically) un-furloughed sending a single email.
            Would running payroll also be in that category i.e. you want to make sure everything is no a standing order?

            Now, isn't this all a case where having someone else (e.g. spouse) as company secretary or unpaid director is actually quite beneficial? They could do all these sorts of things living you no requirement to do anything (officially).
            Originally posted by MaryPoppins
            I'd still not breastfeed a nazi
            Originally posted by vetran
            Urine is quite nourishing

            Comment


              #46
              Attention seeking headline.

              It's not a grey area: tweeting is minimal effort and can increase awareness of any company brand in the interim period before networking and economic progression ticks upwards again - hopefully soon.

              Any Scottish judge would throw a case relying on that out of the window and quite rightly so.

              Tweety away but don't actually work, as is the whole premise of the legislation in the first place.

              Comment


                #47
                Isn't creating awareness of your company brand called marketing?
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #48
                  Originally posted by electronicfur View Post
                  The government could state companies who pay more than x% of their dividends to furloughed employees must suspend dividend payments. They forced banks to suspend dividend payments, so I wouldn't put it past them.

                  But rather than rely on the condescending replies here, I've found the official guidance here:

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

                  Note there is a whole section about furloughing company directors...

                  No mention of dividends, so appears there are no restrictions.
                  They forced banks to suspend dividend payments because in the 2008 Gordon Brown Financial Crash, they government became a major shareholder in lots of banks. Therefore it had the voting capacity to actually reject dividend motions to pay dividends in many banks

                  Comment


                    #49
                    Originally posted by oilboil View Post
                    They forced banks to suspend dividend payments because in the 2008 Gordon Brown Financial Crash, they government became a major shareholder in lots of banks. Therefore it had the voting capacity to actually reject dividend motions to pay dividends in many banks
                    No that's incorrect, the government are not shareholders in lots of banks. They only have shareholdings in RBS and hold some run-off elements of B&B and Northern Rock.

                    On the 31st of March 2020 banks were ordered not to pay dividends. This is why banks have cancelled their dividends until the end of the year. The regulator said the banks are not likely to need the extra money that they save from scrapping dividends, but the extra headroom is to allow them to support the economy this year.

                    Comment


                      #50
                      Originally posted by oilboil View Post
                      in the 2008 Gordon Brown Financial Crash,
                      OK Donald.
                      Originally posted by MaryPoppins
                      I'd still not breastfeed a nazi
                      Originally posted by vetran
                      Urine is quite nourishing

                      Comment

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