Furloughing from limited company and seeking alternative employment Furloughing from limited company and seeking alternative employment
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  1. #1

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    Post Furloughing from limited company and seeking alternative employment

    A few contractor friends are going to be furloughing themselves from their newly repurposed contracting limited companies (i.e. now a real estate purchase and sale SIC) the impact from COVID are obvious, drops in property appetite close to zero.

    The potential challenge is, these same people also have another job as permanent employees. Technically speaking it looks like they can still claim being furloughed from one particular employee, is this correct?

    It seems the overarching intent of the scheme is a) to prevent people from being made redundnant, but b) also a form of quantitative easing, injecting cash into individuals rather than the traditional banking global markets systems.

    Thoughts?

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    What do they pay themselves from the LTDs. Can't be very efficient if they do and have a full time job as well?

    I don't see what is stopping them working if they sell and buy property.

    Sounds like a bit of a piss take to me.
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    Quote Originally Posted by northernladuk View Post
    What do they pay themselves from the LTDs. Can't be very efficient if they do and have a full time job as well?

    I don't see what is stopping them working if they sell and buy property.

    Sounds like a bit of a piss take to me.
    I have no idea, but I suspect around the £12k mark so its tax efficient. Ignoring the subjectivity judgement, technically furloughing themselves from their limited looks legal and in line with HMRC guidance i.e. its perfectly ok to have other employment. Has anyone come across material to prove otherwise?

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    Quote Originally Posted by 94bb View Post
    I have no idea, but I suspect around the £12k mark so its tax efficient. Ignoring the subjectivity judgement, technically furloughing themselves from their limited looks legal and in line with HMRC guidance i.e. its perfectly ok to have other employment. Has anyone come across material to prove otherwise?
    Not so sure that's right....
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    Quote Originally Posted by northernladuk View Post
    Not so sure that's right....
    Anyone else have any thoughts, I’ve heard a tax lawyer on LBC this afternoon confirm this is ok. There is no legal prevention on being employed elsewhere whilst on furlough

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    Quote Originally Posted by 94bb View Post
    Anyone else have any thoughts, I’ve heard a tax lawyer on LBC this afternoon confirm this is ok. There is no legal prevention on being employed elsewhere whilst on furlough
    That is correct. I'm wondering more about his assumption they are paying themselves 12k to be efficient when they've also got a full time job.
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