Has anybody here furloughed themselves yet?

[simes]

SJD seems to be of the opinion that you can't search for a new contract while furloughed. Here's a few excerpts from their advice:

If you wish to claim for the Coronavirus Job Retention Scheme, you must meet the following criteria:

• Not be completing any work for your limited company, including searching for a new contract/networking (except for completing statutory filings such as bookkeeping, VAT returns and accounts),

Your claim can be backdated to 1 March 2020, as long as you meet the criteria as above, which includes not searching for a new contract since this date.

They are also suggesting that if you can afford it, wait until the end of the furlough and make your claim for several months at once.
It's a shame they are saying I can't look for a new contract, that's pretty restrictive. Not sure how I feel about ignoring their advice and claiming anyway, including March.

For what it's worth, this concurred with my understanding / belief / interpretation in respect of promoting and scouting for business being in and of itself, Work.

[jamed]

I can't see anything stating this obviously in the guidance. They are probably taking the most conservative approach to limit the risk and effort for them.

I don't see it being possible for Gov to know if you've been going on interviews and at the end of the day it benefits both the Gov and yourself to find a new role ASAP and stop relying on them for handouts. Otherwise they are basically "forcing" you to stay furloughed for the next 4 months at 600 a month...

"While you’re on furlough
Once you are on furlough you will not be able to work for your employer. You can undertake training or volunteer subject to public health guidance, as long as you’re not:

making money for your employer or a company linked or associated to your employer
providing services to your employer or a company linked or associated to your employer
If workers are required to, for example, complete training courses whilst they are furloughed, then they must be paid at least their appropriate minimum wage (NLW/NMW/AMW) for the time spent training, even if this is more than the 80% of their wage that will be subsidised.

Whilst furloughed your employer cannot ask you to do work for another linked or associated company."

[Scoooby]

What's the thoughts on a one off passive income coming into the business from annual interest (paid once a year) from a business savings account? Different to a regular passive income received every month.

This interest payment is £1700, which is more than the monthly salary.

If not working due to coronoviris should my company still claim for the month in which this interest income payment is received?

Thanks

[pr1]

What's the thoughts on a one off passive income coming into the business from annual interest (paid once a year) from a business savings account? Different to a regular passive income received every month.

This interest payment is £1700, which is more than the monthly salary.

If not working due to coronoviris should my company still claim for the month in which this interest income payment is received?

Thanks

Yes, it's not about what money is coming into the company it's about whether the employee has work to do

[Paralytic]

What's the thoughts on a one off passive income coming into the business from annual interest (paid once a year) from a business savings account? Different to a regular passive income received every month.

This interest payment is £1700, which is more than the monthly salary.

If not working due to coronoviris should my company still claim for the month in which this interest income payment is received?

Thanks

I can't see how the guidelines could show that you can't claim. Its not as if you're actively doing anything to earn that interest and its just coincidence that it happens to fall this month.

[jamed]

What's the thoughts on a one off passive income coming into the business from annual interest (paid once a year) from a business savings account? Different to a regular passive income received every month.

This interest payment is £1700, which is more than the monthly salary.

If not working due to coronoviris should my company still claim for the month in which this interest income payment is received?

Thanks

Definitely eligible to claim.

I think the confusion might have arisen from a previous poster stating he was told he cannot claim as he had rental income coming in. This advice may or may not have been correct depending on the circumstances. If the rentals were "hands-off" like they often are for long periods of time with stable tenants then I definitely think he would be able to furlough himself. I know my rentals all have debit orders set up and unless there is an issue I have zero contact or involvement with the tenants most months. Even more so if you have an agency managing it.

Money coming in means nothing in determining if you can furlough or not. If you would be contracting through the ltd at the moment and earning revenue, but are not due to the economy, then it's perfectly valid to furlough the "employee".

[Scoooby]

My accountant will be putting in a CJRS application from me. Contract finished 2nd April (a few days earlier than contact end date), I am now shielding for 12 weeks. Accountant will make April’s application over the next week or so...busy processing those with March claims.

I have reserves, but that is because in uncertain times (Brexit, IR35 and now Coronavirus) I didn’t use things like pension allowances as I wanted a safety net. I’d like to still do that if things ever get back to normal. I see no reason why just because I have reserves that I shouldn’t apply to the CJRS.

If you are shielding (for 12 weeks) because you are in the identified vulnerable group of people, are you not supposed to claim the (lower amount) sick pay amount instead (approx £94 per week)?

I don't think that would be fair or makes sense to penalise the shielding population who could be considered on furlough as well, but I have read that this might be what is expected elsewhere.

Be interested to know what other people are doing in this situation as well?

[hairymouse]

Video from Martin Lewis about company directors furloughing themselves and how much work they can do.

YouTube

It really seems like this is a massive grey area and SJD is being overly cautious about saying you can't look for new contracts. If you interpret what the video says generously, you could furlough yourself and then take an outside IR35 contract or permie job and continue to pay the furlough wages at the same time.

Has anyone else received advice about this from their accountant?

[andydd68]

Video from Martin Lewis about company directors furloughing themselves and how much work they can do.

YouTube

It really seems like this is a massive grey area and SJD is being overly cautious about saying you can't look for new contracts. If you interpret what the video says generously, you could furlough yourself and then take an outside IR35 contract or permie job and continue to pay the furlough wages at the same time.

Has anyone else received advice about this from their accountant?

Or even create another Ltd Co. and work through that ?

I certainly dont believe even HMRC are stupid enough to come chased after people who looked for another contract whilst furloughed..it makes no sense.

[jamed]

Or even create another Ltd Co. and work through that ?

I certainly dont believe even HMRC are stupid enough to come chased after people who looked for another contract whilst furloughed..it makes no sense.

I think his quote on creating another Ltd Co or just providing the same services via self-employment is definitely taking a risk and could very well be fraud. Especially if it's the same services to the same clients as you were providing through the Ltd.

But as you say there is no logic in them coming after furloughed Ltd employees which have been attempting to find new outside IR35 contracts. To sit unemployed for possibly 4 months and not furlough yourself because you have unsuccessfully been searching for new roles is nonsensical IMO. If you find a new contract then from that point onwards just un-furlough yourself and everyone wins.