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Furloughed - Company Activity

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    Furloughed - Company Activity

    Quick background. I'm a director of a Ltd co and due to this virus a lot of the work for this year has dried up (I do a lot of work for the 'events' industry).
    I have a 'float' of cash in the business which will enable me to run PAYE for a couple of months, however this will run out at some point.

    I've been told I can 'furlough' myself and collect the 80% of PAYE, however during this period the company must remain dormant i.e. not collecting money nor settling expenses.

    My company has several revenue streams that are autonomous and also settles its expenses via DD ie. hosting costs, software licences etc etc. Can the company continue to rumble on without paying PAYE but otherwise operating by itself ??

    confused.com

    #2
    Tough time to be in events. The Edinburgh festivals have just been cancelled for this year. Bodes ill for the rest of the UK.
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    Former member of IPSE.


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    Many a mickle makes a muckle.

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    Comment


      #3
      You are allowed to carry out your director responsibilities. You aren't allowed to do work as an 'employee'. Only you will really know the distinction between them for your purposes but shouldn't be too hard to work out the difference. Interesting article that even tweeting can be considered 'employee' type work so you've got be pretty honest with yourself when making that distinction.

      Looking at the example below, doing anything around making sure these payments come in, everything is running smoothly, dealing with issues would be considered work.

      ‘Don’t Tweet if you want your director salary paid during furloughed periods’
      Last edited by northernladuk; 1 April 2020, 11:36.
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        I think anything other the fulfilling your mandatory requirements as a director (Companies House info etc) and possibly paying any bills that are due should probably be avoided.

        Comment


          #5
          Originally posted by dx4100 View Post
          I think anything other the fulfilling your mandatory requirements as a director (Companies House info etc) and possibly paying any bills that are due should probably be avoided.
          +1

          If its just paying hosting fees, updating software licenses, then I 'd consider that ok. But, if you administer servers, apply security patches etc, then that sounds like employee type work to me. Basically, anything that is driving income should be considered work.

          Perhaps furlough yourself and employ someone else to do any such work on an ad-hoc basis?
          Last edited by Paralytic; 1 April 2020, 13:02.

          Comment


            #6
            Presumably looking for work counts as proper work in this context? As a freelancer with a couple of retained clients who are not sending in any new work at the moment, if they did come in with a request for something I wouldn't even be able to clarify the requirement in order to judge whether it would be worth coming out of furlough or not?

            Comment


              #7
              Originally posted by Paralytic View Post
              +1

              If its just paying hosting fees, updating software licenses, then I 'd consider that ok. But, if you administer servers, apply security patches etc, then that sounds like employee type work to me. Basically, anything that is driving income should be considered work.

              Perhaps furlough yourself and employ someone else to do any such work on an ad-hoc basis?
              Isn't updating software licenses similar enough to applying security patches to be construed as work? I don't see updating licenses as part of any directors responsibilities.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by ittony View Post
                Presumably looking for work counts as proper work in this context? As a freelancer with a couple of retained clients who are not sending in any new work at the moment, if they did come in with a request for something I wouldn't even be able to clarify the requirement in order to judge whether it would be worth coming out of furlough or not?
                Interesting one that but yes it appears it is. In the article it says

                [Remember], statutory duties are really limited so if as a director you are still talking to customers; you are still talking to suppliers; you are still busting a gut to keep your business going; you’re still marketing your business to keep your business going and you’re still posting on social media; unfortunately you won’t be able to claim”.
                The only activities a director can do is in the second paragraph which says
                The accountant was referring to HMT specifying that statutory and administrative duties can be carried out by PSC directors who furlough themselves, “so long as that is all they are doing,” Claer Barrett of the Financial Times clarified in a Q&A yesterday.
                Still leaves a grey area but going job hunting and interviewing isn't statutory or administrative.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by northernladuk View Post
                  Isn't updating software licenses similar enough to applying security patches to be construed as work? I don't see updating licenses as part of any directors responsibilities.
                  I meant renewing. eg. pay for the annual subscription. I suspect even that is a grey areas as to whether it is a statutory duty.

                  Comment


                    #10
                    Originally posted by northernladuk View Post
                    Interesting one that but yes it appears it is. In the article it says



                    The only activities a director can do is in the second paragraph which says


                    Still leaves a grey area but going job hunting and interviewing isn't statutory or administrative.
                    But for most contractors it is an individual attending an interview for a contract, not a salesman trying to sell a piece of work. I think any contractor here could argue that the company only gets involved when you see the contract and have confirmation that using a company would be a suitable way of processing the work.

                    After all what is sent to the agent is it a CV or a business proposition?
                    merely at clientco for the entertainment

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