Furlough for staff on payroll who don't actually do any work for the company?

wjm.bobo

Can the Wife and Partner of the two company directors who were on the company payroll before Covid be Furloughed?  
Are they allowed to be on the payroll as it is obvious to me that they are their purely to reduce the amount of personal tax the directors pay.
Would they be entitled to the £1,000 job retention payment due next year?

Grumpy_chap

Odd to ask this question so late.
Any individual that is on the payroll at the qualifying date in March and had to have been furloughed by June at the latest.  If that is met, then the employees can remain on furlough and, if they are kept in employment, then assume the retention payment will be available.

wjm.bobo

I was just wondering if it was legal, they were furloughed but don't do any work for company.  It doesn't seem right claiming tax payers money in my opinion but wondered if company directors can have members of their family on payroll to offset their own tax.  They were on payroll last year so wasn't implemented as a result of Furlough scheme? 

Thrugelmir

It's none of your business how the owners run their company. 

wjm.bobo

True point taken but, if I'm expected to process the payroll on their instruction, where does that leave me.  I don't feel comfortable that's all.  I've questioned it and been told its fine!!  I'm just trying to protect myself.

Grumpy_chap

wjm.bobo said:

I'm expected to process the payroll on their instruction

This seems like a normal instruction that would be given by a boss to an employee in the normal course of running a business.  So long as the instruction is not illegal or immoral, you will be reasonably expected to follow the instruction.  Process the payroll in the same way as you have always done.  It is quite possible that the individuals, while they may not be present at the office, deliver very valuable and needed services to the business from another location.  It is your job to process payroll and not to manage the output or performance of other employees.

wjm.bobo

thank you, I just wanted to make sure I wasn't doing anything wrong.

silvercar

Can the Wife and Partner of the two company directors who were on the company payroll before Covid be Furloughed?  

Yes they can. The simple rule is that they did no work while furloughed. That you couldn't see them doing any work before covid is irrelevant. 

Are they allowed to be on the payroll as it is obvious to me that they are their purely to reduce the amount of personal tax the directors pay.

That is your opinion, it may be that they work from home and you have no sight of their work.

epm-84

silvercar said:

Can the Wife and Partner of the two company directors who were on the company payroll before Covid be Furloughed?  

Are they allowed to be on the payroll as it is obvious to me that they are their purely to reduce the amount of personal tax the directors pay.

That is your opinion, it may be that they work from home and you have no sight of their work.

It might be his/her opinion but I'm aware of accountants telling company directors how they can employ their wives to work 0 hours per week and reduce their own pay to take them below the 40% tax threshold and I know someone close to George Osborne did precisely that with their business.  His wife had a small business selling handbags which was struggling to even break even so she wasn't even using her tax free personal allowance.  The reality was she then got over £30,000 for doing no more than occasionally giving her husband a lift to the station and turning up for a Christmas party.

Grumpy_chap

epm-84 said:

silvercar said:

Can the Wife and Partner of the two company directors who were on the company payroll before Covid be Furloughed?  

Are they allowed to be on the payroll as it is obvious to me that they are their purely to reduce the amount of personal tax the directors pay.

That is your opinion, it may be that they work from home and you have no sight of their work.

It might be his/her opinion but I'm aware of accountants telling company directors how they can employ their wives to work 0 hours per week and reduce their own pay to take them below the 40% tax threshold and I know someone close to George Osborne did precisely that with their business.  His wife had a small business selling handbags which was struggling to even break even so she wasn't even using her tax free personal allowance.  The reality was she then got over £30,000 for doing no more than occasionally giving her husband a lift to the station and turning up for a Christmas party.

Surely, it is for the Company Directors to assess the appropriate reward package for a chauffeur and providing the service of accompanying the Director to the Christmas Party.  Maybe the Director is a right ogre and they can't get anyone else to bear his company for the evening for less?

Thrugelmir

Over the years I've seen Xmas and birthday presents,  housekeepers,  mooring fees for a boat in Monaco, dredging of a 400 yard lake (so the Director concerned could go jet skiing), insurance and storage for a collection of vintage tractors paid through a Company books.  People are people. Always will be. That's the bottom line.