Has anybody here furloughed themselves yet? Has anybody here furloughed themselves yet? - Page 2
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  1. #11

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    Quote Originally Posted by jamesbrown View Post
    Makes sense.

    I think anyone using this scheme should be aware that its use is likely to be scrutinised down the line.

    So, for example, if you have several tens of thousands in company reserves and you're using this scheme instead of paying from those reserves, I think there are going to be questions later. Remember, this scheme was put together very quickly with a view to helping those that really need it. For those that don't, I'm sure there will be few questions now but many later.

    For example:

    Firms should only use furlough scheme if they absolutely have to, says Dowden
    What a selective quote as the article title, just looks like clickbait. Here is another selective quote that gives the exact opposite impression from the same article you provided:

    All employers are eligible to claim under the scheme and the government recognises different businesses will face different impacts from coronavirus.
    I am not an accountant so am not giving any sort of professional accounting or legal advice but from a moral and ethical standpoint when the government is just printing money to pay for these aid programs that is devaluing any money you hold in your business. It's not different than the government taxing your business an extra 2000 and then providing a 2000 subsidy, that's bad business to turn down that subsidy you are paying for.

    I am pretty sure what was meant in what you posted is that you shouldn't shut down a revenue generating line of business and furlough employees just so your employees can get a paid holiday. That would be unethical and bordering on fraud. In no way is taking government money that your business legitimately qualifies for any sort of ethical or moral issue, even if you have money in the bank. You don't know how your business will be doing in 6 months.

  2. #12

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    Quote Originally Posted by jayn200 View Post
    What a selective quote as the article title, just looks like clickbait. Here is another selective quote that gives the exact opposite impression from the same article you provided:



    I am not an accountant so am not giving any sort of professional accounting or legal advice but from a moral and ethical standpoint when the government is just printing money to pay for these aid programs that is devaluing any money you hold in your business. It's not different than the government taxing your business an extra 2000 and then providing a 2000 subsidy, that's bad business to turn down that subsidy you are paying for.

    I am pretty sure what was meant in what you posted is that you shouldn't shut down a revenue generating line of business and furlough employees just so your employees can get a paid holiday. That would be unethical and boarding on fraud. In no way is taking government money that your business legitimately qualifies for any sort of ethical or moral issue, even if you have money in the bank. You don't know how your business will be doing in 6 months.
    A selective quote from a 200 word article that I also linked

    Read the article.

    Your "pretty sure" speculation is also nothing more than speculation.

    I'm "pretty sure" that contractor ltd companies with a material warchest claiming against this scheme are not "morally or ethically" the target of this scheme.

    OTOH, contractors that really need this money are the target of this scheme, along with many others.

    Good luck to those that think otherwise.

  3. #13

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    Quote Originally Posted by jamesbrown View Post
    Makes sense.

    I think anyone using this scheme should be aware that its use is likely to be scrutinised down the line.

    So, for example, if you have several tens of thousands in company reserves and you're using this scheme instead of paying from those reserves, I think there are going to be questions later. Remember, this scheme was put together very quickly with a view to helping those that really need it. For those that don't, I'm sure there will be few questions now but many later.
    I suspect this could happen too.

    I see posts from people who were out of contract long before Covid happened, but are now looking to furlough themselves (and potentially could since they might still be paying themselves a salary from their retained profit).

    I wonder if HMRC could come after these people in future and they'll point the finger at their accountants.

    After this is all over, there is going to be one massive look at how the government get all this money back.

  4. #14

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    I've claimed.

    Remember we're not just claiming for April pay - we could be 6,12 months into this at one point, so you'll have wanted to claim from the earliest opportunity.

    These are extraoadinary circumstances - where companies are being paid off, mortgages are on hold, and SA/PAYE income is being offered by the government.

    It is not the time for 'warchest for a month or two of quiet market', IMO.

    Plus it's been confirmed over and over again that contractors can use this. We'll still be running at a loss, just the Gov has offered to take some of the edge off it. Those not running at a loss are permies on 100% pay. Don't burn all of your reserves willingly when the government and independent experts have so clearly stated that you're eligible.

  5. #15

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    Quote Originally Posted by OneManBand View Post
    Anybody knows how to sign the company up to Government Gateway? The PAYE Online link on this page took me to the Government Gateway signin page, but there is no link for new registration!

    I have a Government Gateway account for personal taxes, but not for the company.
    Do you manage your own PAYE or does your accountant do it ? If the latter then they'll probably have the logon.

  6. #16

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    Quote Originally Posted by Paralytic View Post
    I suspect this could happen too.

    I see posts from people who were out of contract long before Covid happened, but are now looking to furlough themselves (and potentially could since they might still be paying themselves a salary from their retained profit).

    I wonder if HMRC could come after these people in future and they'll point the finger at their accountants.

    After this is all over, there is going to be one massive look at how the government get all this money back.
    Because IR35 changes basically killed the market just before Coronavirus came along. Whether it's Coronavirus Job Retention Scheme or IR35 Job Retention Scheme I couldn't really care. The government killed the market either way. If you need the money because IR35 killed the market and you can use Corona as an excuse, claim it.

  7. #17

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    Quote Originally Posted by oliverson View Post
    Because IR35 changes basically killed the market just before Coronavirus came along. Whether it's Coronavirus Job Retention Scheme or IR35 Job Retention Scheme I couldn't really care. The government killed the market either way. If you need the money because IR35 killed the market and you can use Corona as an excuse, claim it.
    IR35 certainly didn't help matters, but as my usual clients don't now have functional offices or outlets (e.g. retail) or have a severe reduction in their own custom, I'm entirely comfortable demonstrating the material event that justifies the claim.

  8. #18

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    Quote Originally Posted by oliverson View Post
    Because IR35 changes basically killed the market just before Coronavirus came along. Whether it's Coronavirus Job Retention Scheme or IR35 Job Retention Scheme I couldn't really care. The government killed the market either way. If you need the money because IR35 killed the market and you can use Corona as an excuse, claim it.
    Yes, so long people people realise they are (ab)using the scheme to gain income they're not really entitled to (as per the design of the scheme), that's their choice. There's a chance HMRC could come asking for proof, but I suspect the risk is low.
    Last edited by Paralytic; 21st April 2020 at 11:13.

  9. #19

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    I have just furloughed myself too.

    My last contract ended on 21st Feb - have had 3 different offers after - all 3 were dropped due to Covid impact.

    It's far from ideal situation but this scheme was put in place for a reason... the economy is screwed and none knows for how long.

  10. #20

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    Quote Originally Posted by PerfectStorm View Post
    IR35 certainly didn't help matters, but as my usual clients don't now have functional offices or outlets (e.g. retail) or have a severe reduction in their own custom, I'm entirely comfortable demonstrating the material event that justifies the claim.
    Did you contract end because of Covid, or is it that you can't find new contracts because of Covid?

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