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JRS and Single Director just finished contract

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    JRS and Single Director just finished contract

    Hi there, this is a question about JRS in relation to me and the fact that I am the single director and employee of a LTD company. Mid march the last client decided due to the virus and IR35 that they were terminating all contracts based on a 48hr notice period. This leaves me in the position on having little chance of finding another contractor until the virus situation and cleared up somewhat.

    My accountant has sent some information about JSR in relation to single company directors and are basically saying I should think long and hard before makign myself furloughed.

    My understanding is that I will get 80% of my PAYE which is currently £719. I assume I would have to stop any payment of this £719 from the company in order to make use of the JSR. I also assume I would be required to specify a period of time, say 8 weeks for example. Would I have to apply again after this period ?

    I usually take a short break between contracts anyway but the quick descision of the client to terminate and also the lockdown means that I wouldn't really be planning to take a break in the current situation.

    Are there any other pitfalls ?

    Thanks
    When a man says his word is as good as his bond take his bond.

    #2
    Originally posted by swebb View Post
    Hi there, this is a question about JRS in relation to me and the fact that I am the single director and employee of a LTD company. Mid march the last client decided due to the virus and IR35 that they were terminating all contracts based on a 48hr notice period. This leaves me in the position on having little chance of finding another contractor until the virus situation and cleared up somewhat.

    My accountant has sent some information about JSR in relation to single company directors and are basically saying I should think long and hard before makign myself furloughed.

    My understanding is that I will get 80% of my PAYE which is currently £719. I assume I would have to stop any payment of this £719 from the company in order to make use of the JSR. I also assume I would be required to specify a period of time, say 8 weeks for example. Would I have to apply again after this period ?

    I usually take a short break between contracts anyway but the quick descision of the client to terminate and also the lockdown means that I wouldn't really be planning to take a break in the current situation.

    Are there any other pitfalls ?

    Thanks
    There are plenty of answers in https://www.contractoruk.com/forums/...us-assistance/

    Short answer is that no body knows - I suspect you furlough yourself and continue to pay yourself with the company claiming the money back but this is all being done in a hurry so it may take a while.

    As for pitfalls - not a clue this is being done on the fly and pitfalls will only be revealed far later when HMRC trying to fix the newly created mess.
    merely at clientco for the entertainment

    Comment


      #3
      Can you not support yourself for a month of two while you look for other work?
      Blog? What blog...?

      Comment


        #4
        Originally posted by malvolio View Post
        Can you not support yourself for a month of two while you look for other work?
        NLUK and myself argued that earlier this week.

        1) Given the way we work being furloughed isn't that much of an issue - when we find work we decide how to work and only after getting a contract would you yourself from the company and start work (if it's inside IR35 just resign and use an umbrella).
        2) these payments may only last 3 months - what happens if the market recovers, the furlough payments stop and you still can't find work. You would be turning down a few grand for nothing and creating a problem for yourself later...

        So yes you could turn it down and support yourself but I'm not sure how wise that decision would actually be. These are not normal times as 105,000 Universal Credit claims in a single day last week show..
        Last edited by eek; 31 March 2020, 10:40.
        merely at clientco for the entertainment

        Comment


          #5
          Originally posted by swebb View Post
          My accountant has sent some information about JSR in relation to single company directors and are basically saying I should think long and hard before makign myself furloughed.
          My accountant has done something similar. When I asked they sent me a standard response email with lots of stuff about self-employment (they know I'm not a sole trader) and a little bit about LTD companies pointing me to go and look at the government website instead of answering my question.

          They probably don't want the extra admin and want to keep it nice and easy for them.

          Comment


            #6
            Originally posted by malvolio View Post
            Can you not support yourself for a month of two while you look for other work?
            You need to think longer term than that... Although the answer might be yes what about month 3,4 and 18...

            Its sensible to plan as if you won't find work for 18 months and anything else is a bonus I feel. Yesterdays world doesn't apply anymore - we practical have no economy - this is beyond a recession.

            Comment


              #7
              Originally posted by CheeseSlice View Post
              My accountant has done something similar. When I asked they sent me a standard response email with lots of stuff about self-employment (they know I'm not a sole trader) and a little bit about LTD companies pointing me to go and look at the government website instead of answering my question.

              They probably don't want the extra admin and want to keep it nice and easy for them.
              Because it's not for them to advise you how to run your business. If they tell you to do the wrong thing and you lose out you could come after them. They can tell you how the finances work. The rest is up to you.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by eek View Post
                NLUK and myself argued that earlier this week..
                Errr. I would have said healthy discussion to be fair
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by northernladuk View Post
                  Because it's not for them to advise you how to run your business. If they tell you to do the wrong thing and you lose out you could come after them. They can tell you how the finances work. The rest is up to you.
                  Exactly, I asked them what options I had. I outsource payroll and PAYE admin to my accountant, its their job is to understand all of this and be ready if I request it.

                  I think this is just going to be headache to them as they've already set up the payrolls for 2020/21.

                  Comment


                    #10
                    Originally posted by malvolio View Post
                    Can you not support yourself for a month of two while you look for other work?
                    Yes easy to be honest, I could go a few years if really needed however I've just been through major headaches with IR35, feel like I've been taxed to the hilt the last few years ..... personally I feel like the gov and hmrc have been take take take so if there is a way of me getting some back I want to take it.
                    When a man says his word is as good as his bond take his bond.

                    Comment

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