Business

gazpeace

Hi I was wondering if you could help. 

Me and my business partner are electricians and are a ltd company. because of the convid19 we don’t have any work now as we work in customers houses. We have virtually nothing in the bank about 4K and have wholesaler bills to pay at the beginning of next month which is about 3k that’s basically all our money gone. Then we also have work vehicles which are £360 a month each.

If we end up having to fold the business because we have no more money will this effect our credit for the future for either business or personal? Just because of the current situation? Hope you can help with is question. Thanks

Jeremy535897

Did you get paid salaries through a registered payroll? Could one of you be furloughed for a month and then swap to the other?

neilmcl

Jeremy535897 said:

Did you get paid salaries through a registered payroll? Could one of you be furloughed for a month and then swap to the other?

There's no reason why the both of them can't be furloughed and receive the 80% grant if they're both take a salary.

Jeremy535897

It's a practical problem in that anyone furloughed will not be able to do nothing at all for the company except routine directors' duties. It might be difficult for both to be furloughed at the same time for this reason.

whizzywoo

According to the Martin Lewis briefing lone company directors are allowed to furlough themselves under the Job Retention Scheme.
They are allowed to carry out minimal admin duties such as statutory filings etc during the furlough period.  I would think that running payroll and completing VAT returns would count as statutory filing.  However they are NOT allowed to carry out any income generating duties. 
The Job Retention Scheme does NOT cover company dividends paid only salary paid through a proper PAYE scheme.
See Martin's comments here:
https://www.moneysavingexpert.com/news/2020/03/coronavirus-self-employed-and-employment-help/?utm_source=MSE_Newsletter&utm_medium=email&utm_term=31-Mar-20-50599902-1684&utm_campaign=nt-hiya&utm_content=15#limited

Jeremy535897

Which is why I suggested the more practical option of one on, one off, which is much less likely to fall foul of the rules, but it is OP's choice.

gazpeace

Yes but you still have to have money in your bank to pay your self and bills before the furlough money comes in right?
still need to know what is the affects if we need to shut the company down? Will we get black listed?

Jeremy535897

It depends on whether, when shutting down, it is insolvent and does not pay all its bills. If it pays all its bills, there should be no formal effect. You need to pay all suppliers and inform them you are closing the accounts with them. If you start up again and seek new accounts, you will have to go through the suppliers' vetting process again.