Ltd Company - Problem with furloughing myself

leeevers

Hi there
I have an Ltd company, I don't have any employees so it's just me.
My accountant has been dealing with the accounts for the past few years. When the whole Covid situation started I asked him for his advise straight away and he said he will investigate my options. When furlough was a possible option, he said HMRC wouldn't allow it as I'm on a different pay scheme, an annual scheme - so I get paid once per year rather than 12 times

 - Under this HMRC intentionally misread the situation that you pay yourself once per annum in March.

- We are now aiming to make an online posting for you on 15th June to try and work round the situation – if successful, we will aim to get a backdate on the claim 

Luckily I had a few days of work in May but my accountant says that automatically cancels out the furlough payments if there's any - but I'm speaking to a friend who has a 12 month pay scheme and he's managed to furlough himself no problems, and he's been able to backdate for months he's not worked. 

So ideally it be nice to get something back for March and April where I've had nothing, also June looks like there's no work either.

It be nice to know if you think I have a chance getting any payments as I really need the help. Also, is my accountant being fair? still invoicing me as normal considering it sounds like this is their error for putting me on a 12 month payment scheme.

Thanks

silvercar

I don't think you can blame your accountant for this one. There is no way that they could have known the details of any furlough scheme the government may have introduced in the future, or when the cut offs were.
Had you accountant completed PAYE tax returns for you each month instead of annually, they would probably have charged you a lot more.
Your accountant is correct that you can't do any work while on furlough, so the claim would have had to stop when you had your first day of work.

Grumpy_chap

Did you make a RTI submission in 2019-20 tax year before 20th March?
If not, then you will not be eligible for furlough.
I don't understand the references to an on-line posting 15th June to work around the claim.

sharpe106

Hardly the accountant fault nobody knew this was going to happen. I also assumed when he set it up he gave you the options and that is the one that you chose as it suited you best. 
Surely you best bet is to ask your friend what he did as it sounds like he is in a similar position to you. 

dunstonh

When furlough was a possible option, he said HMRC wouldn't allow it as I'm on a different pay scheme, an annual scheme - so I get paid once per year rather than 12 times

That is correct.   

Luckily I had a few days of work in May but my accountant says that automatically cancels out the furlough payments if there's any

If you furlough yourself then you cannot work.    Only regulatory duties or official capacity duties of being a director.

but I'm speaking to a friend who has a 12 month pay scheme and he's managed to furlough himself no problems, and he's been able to backdate for months he's not worked.

Those on monthly payroll have no problem as they have a monthly income.  And as he hasnt worked, he hasnt broken any rules.

Also, is my accountant being fair? still invoicing me as normal considering it sounds like this is their error for putting me on a 12 month payment scheme.

HMRC set the rules.  Not the accountant.    And it was your choice to be on an annual payroll rather than a monthly one.  The accountant would earn more if you were on a monthly payroll.   Annual payroll is cheaper than monthly payroll.    Something in the region of £30 a year for annual payroll vs £360 a year for monthly.  

As you can only claim 80% of £719pm under furlough on monthly payroll (assuming you being to the primary threshold), that is £575.20.     If you claimed 3 months furlough, that is  £1725.     However, if you assume the above payroll costs and have been trading for more than 5 years, then you would have paid more in payroll costs than the amount received on furlough.

If you think about it logically, furlough is to help in respect of cashflow paying monthly income.  You don't have a monthly income on paper.  You chose to have an annual income and your annual salary isn't due at this time.  So, no support is needed.

pleasedelete

*If you furlough yourself then you cannot work.    Only regulatory duties or official capacity duties of being a director.

But you can unfurlough and work- each furlough period needs to be a minimum of 21 days.