Furloughing from limited company and seeking alternative employment

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northernladuk replied

18 April 2020, 21:00
Originally posted by 94bb View Post

Anyone else have any thoughts, I’ve heard a tax lawyer on LBC this afternoon confirm this is ok. There is no legal prevention on being employed elsewhere whilst on furlough

That is correct. I'm wondering more about his assumption they are paying themselves 12k to be efficient when they've also got a full time job.
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94bb replied

18 April 2020, 20:54
Originally posted by northernladuk View Post

Not so sure that's right....

Anyone else have any thoughts, I’ve heard a tax lawyer on LBC this afternoon confirm this is ok. There is no legal prevention on being employed elsewhere whilst on furlough
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northernladuk replied

17 April 2020, 19:45
Originally posted by 94bb View Post

I have no idea, but I suspect around the £12k mark so its tax efficient. Ignoring the subjectivity judgement, technically furloughing themselves from their limited looks legal and in line with HMRC guidance i.e. its perfectly ok to have other employment. Has anyone come across material to prove otherwise?

Not so sure that's right....
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94bb replied

17 April 2020, 19:24
Originally posted by northernladuk View Post

What do they pay themselves from the LTDs. Can't be very efficient if they do and have a full time job as well?

I don't see what is stopping them working if they sell and buy property.

Sounds like a bit of a piss take to me.

I have no idea, but I suspect around the £12k mark so its tax efficient. Ignoring the subjectivity judgement, technically furloughing themselves from their limited looks legal and in line with HMRC guidance i.e. its perfectly ok to have other employment. Has anyone come across material to prove otherwise?
Leave a comment:
northernladuk replied

17 April 2020, 19:08
What do they pay themselves from the LTDs. Can't be very efficient if they do and have a full time job as well?

I don't see what is stopping them working if they sell and buy property.

Sounds like a bit of a piss take to me.
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94bb started a topic Furloughing from limited company and seeking alternative employment

17 April 2020, 18:51
Furloughing from limited company and seeking alternative employment

A few contractor friends are going to be furloughing themselves from their newly repurposed contracting limited companies (i.e. now a real estate purchase and sale SIC) the impact from COVID are obvious, drops in property appetite close to zero.

The potential challenge is, these same people also have another job as permanent employees. Technically speaking it looks like they can still claim being furloughed from one particular employee, is this correct?

It seems the overarching intent of the scheme is a) to prevent people from being made redundnant, but b) also a form of quantitative easing, injecting cash into individuals rather than the traditional banking global markets systems.

Thoughts?
Tags: furlough