We are directors and want to furlough as not a penny coming in.

p00hsticks

patch1969 said:

Why is it unlikely to be the case just because you are a director ? If there's no work, there's no work !

I think the reasoning is that the government job retention scheme for employees requires those on furlough to do no work at all for the company. But at the very least there needs to be one person still working within the company to actually handle the admin relating to the furlough application, and there are also  other legal obligations around being a director that means they may have to perform some admin tasks such as processing payroll, filing company accounts etc. So a one man limited company wouldn't be eligible for that scheme. But let's see what's announced today

neilmcl

Maybe you guys should have a look at the following - https://www.contractoruk.com/news/0014487coronavirus_job_retention_scheme_what_limited_company_contractors_need_know.html

Luvoj

calcotti said:

GILL1993 said: Our accountant says because we  are directors we are not entitled but this seems very unfair and I’m not entirely sure he knows that to be correct, does anyone have anymore information on this please ?

To be a furloughed employee you have to do no work for the business - as a director this is unlikely to be the case.

I am a director of a small, independant retail store selling, or at least trying to until recent days, fashion items. It is not a business that has any online activity, as we pride oureslves on offering a bespoke, made to measure service.

I employ 3 members of staff to assist me in our store.

I have been ordered to close our doors until further notice which I was in the process of doing anyway for the health and safety not only of customers but of me and my staff.

I have laid off my 3 staff on full pay. I don't know how long I can continue to do this, nor how long the pandemic will last - it's a developing situation. Hopefully I will be able to retain them through this difficult time, but I informed my staff of the situation and assured them I would do everything I could to retain them. They have one and all provided me great long term service and now I feel obliged to return that loyalty and hard work they have shown me. Furthermore, I really don't know how or if I would survive if I had to let them go.

But I'm also curently sat at home twiddling my thumbs at present, hence why I have joined this forum.

Pray, please help me run my business and tell me what else I should be doing at this time as it beats me. Seems some people think they know more about my business and how to run it than I do with my many, many years experience.

Luvoj

neilmcl said:

patch1969 said:

calcotti said:

GILL1993 said: Our accountant says because we  are directors we are not entitled but this seems very unfair and I’m not entirely sure he knows that to be correct, does anyone have anymore information on this please ?

To be a furloughed employee you have to do no work for the business - as a director this is unlikely to be the case.

Why is it unlikely to be the case just because you are a director ? If there's no work, there's no work !

GILL1993 myself and my wife are in exactly the same position as you with around £9000 each in our accounts each year as wages. How do we access the help for employees?  TIA

As mentioned, as directors of your company you are not classed as an employee even though you may take a salary. You have no contract of employment, you cannot be sacked or made redundant and you cannot be furloughed. Even though the work has dried up you still need to be there to administer your company.

I am classed as am employee. Not only am I paid as an employee under the PAYE scheme, not only do I receive a P60 every year that states I am employee, but our company accounts include me as an employee of the company.

It is certainly the case that there are some directors who are not employees of their company, but many, many are.

patch1969

neilmcl said:

GILL1993 said:

Myself and my husband are both directors of our small ltd company, on our tax returns it’s shows we take £8424.00 in wages and the rest is made up in dividends , we are employees of our company so can we take get Coronavirus virus Job Retention salary ? Our accountant says because we  are directors we are not entitled but this seems very unfair and I’m not entirely sure he knows that to be correct, does anyone have anymore information on this please ?

Thanks

That's the thing though, you're not employees.

Thank you Neilmcl, so as directors if we're not employees or self employed does anyone know what are we please?

Andrewrg1

I agree with AdeJ and reading through prowla comments:

Unfortunately, in choosing to pay a minimal salary and take the rest as dividends, they're not covered.

As an employee of a Limited company, you are not self-employed.

I don't have an answer to your predicament, but it is one of the pitfalls of going down the Ltd Co. rule and is a clear demonstration of the iniquities of IR35, whereby the taxman wants to pretend you are an employee for tax purposes but the benefits systems says you're not when you need help.

I work for the NHS as an interim - however, because I'm an interim, I cant work remotely - due to IT and virtual server issues, and given that most NHS IT Dept are overwhelmed that won't change. There are also issues with patient data and confidentiality and no allowing this data to be shared across networks. (Which we all understand)

I had no choice to set up as a Limited Company (currently outside IR35) due to the rules of the contract. My contract, that was due to carry on for a few more months, has been stopped. I have no more income coming in. OK it's going to be tough. Like others here, I have paid myself a minimal salary as advised. 
I know it a probably too early to ask what do next, but I am glad I have found a site discussion and others who are in the same boat as me, so Thank you sharing, at least I don't feel so alone now . . .
Many thanks

Andrewrg1

Does this forum update you, if others post too?

neilmcl

Luvoj said:

neilmcl said:

patch1969 said:

calcotti said:

GILL1993 said: Our accountant says because we  are directors we are not entitled but this seems very unfair and I’m not entirely sure he knows that to be correct, does anyone have anymore information on this please ?

To be a furloughed employee you have to do no work for the business - as a director this is unlikely to be the case.

Why is it unlikely to be the case just because you are a director ? If there's no work, there's no work !

GILL1993 myself and my wife are in exactly the same position as you with around £9000 each in our accounts each year as wages. How do we access the help for employees?  TIA

As mentioned, as directors of your company you are not classed as an employee even though you may take a salary. You have no contract of employment, you cannot be sacked or made redundant and you cannot be furloughed. Even though the work has dried up you still need to be there to administer your company.

I am classed as am employee. Not only am I paid as an employee under the PAYE scheme, not only do I receive a P60 every year that states I am employee, but our company accounts include me as an employee of the company.

It is certainly the case that there are some directors who are not employees of their company, but many, many are.

None of the above makes you an employee. Have your read the article I linked?

neilmcl

patch1969 said:

neilmcl said:

GILL1993 said:

Myself and my husband are both directors of our small ltd company, on our tax returns it’s shows we take £8424.00 in wages and the rest is made up in dividends , we are employees of our company so can we take get Coronavirus virus Job Retention salary ? Our accountant says because we  are directors we are not entitled but this seems very unfair and I’m not entirely sure he knows that to be correct, does anyone have anymore information on this please ?

Thanks

That's the thing though, you're not employees.

Thank you Neilmcl, so as directors if we're not employees or self employed does anyone know what are we please?

For this you will be classed as self-employed and as such the announcement tonight will reveal what or if you can get anything.

Luvoj

Under the Coronavirus Job Retention Scheme, all UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis.

This applies to employees who have been asked to stop working, but who are being kept on the pay roll, otherwise described as ‘furloughed workers’. HMRC will reimburse 80% of their wages, up to £2,500 per month. This is to safeguard workers from being made redundant.

If I am unable to access the scheme, I will make myself redundant. That will also mean winding up the business, thereby making my 3 employees also redundant.

I can assure you I will move heaven & earth to prevent that happening to any of us.