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Sole Director Limited Company- how do I manage redundancy/lay off linked to Covid 19?
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pleasedelete
Posts: 2,291 Forumite


I am the sole director and sole fee earner. I have 1 employee and I am an employee. Work has completely dried up today and this is likely to be for at least 12 weeks.There may be an odd remote access job after Easter and a 3 day job next week has not been cancelled yet but I will find out this afternoon.
Employee and I have both worked for the company for 9 years. Looking at the cash flow I can keep my employee on for this period as it will be roughly the same amount as their redundancy entitlement. If I end up having to make them redundant anyway after 12 weeks the business is unlikely to have the cash to do this unless I pay personally through loaning the company the money. I will need to stop paying myself this week in order to preserve the money to pay them. I do have corporation tax and VAT set aside as it has just been the year end. I have chased all those who owe me money today, they are public sector and so they will pay.
Am I likely to be able to sign on? £73 a week is better than nothing.
Is there something else I could do that I haven't thought of?
Any advice?
Employee and I have both worked for the company for 9 years. Looking at the cash flow I can keep my employee on for this period as it will be roughly the same amount as their redundancy entitlement. If I end up having to make them redundant anyway after 12 weeks the business is unlikely to have the cash to do this unless I pay personally through loaning the company the money. I will need to stop paying myself this week in order to preserve the money to pay them. I do have corporation tax and VAT set aside as it has just been the year end. I have chased all those who owe me money today, they are public sector and so they will pay.
Am I likely to be able to sign on? £73 a week is better than nothing.
Is there something else I could do that I haven't thought of?
Any advice?
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Comments
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If you have a layoff clause in your employee's contract, you could consider doing that. Even if you don't have a layoff clause, you could talk to them about whether they'd agree to a temporary layoff.If you can hold on for a few days, that might be worth doing. The government is making IMO encouraging noises about support for small businesses, and the picture on that will hopefully become clearer soon.0
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Annisele said:If you have a layoff clause in your employee's contract, you could consider doing that. Even if you don't have a layoff clause, you could talk to them about whether they'd agree to a temporary layoff.If you can hold on for a few days, that might be worth doing. The government is making IMO encouraging noises about support for small businesses, and the picture on that will hopefully become clearer soon.0
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pleasedelete said:I am the sole director and sole fee earner. I have 1 employee and I am an employee.
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I will need to stop paying myself this week in order to preserve the money to pay them.
...
Am I likely to be able to sign on? £73 a week is better than nothing.0 -
Can you organise your reduced workload so that your employee could be furloughed in three week blocks, returning for as long as required in between, this would give you a refund of some of their wages?
Directors can also furlough their PAYE element if they too can fit the three week no work rule.0
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