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COVID - furlough or not?

1 director wishes to furlough and the other not - ltd co still invoicing

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I have my own initial thoughts on this request from client but would welcome your thoughts please.  Limited co (family business) is losing 90% plus of business due to COVID and so one director was planning to not take a salary at this time and then the option of furlough was discussed....so one director would welcome being furloughed whilst the other director is still 'active' and employed to manage the 10% invoicing etc.....  no other employees. Just a small 2 director consultancy business. I have reviewed the details from HMRC and cannot conclude if this is allowable criteria or not?  the 1 director would not be active at this stage but it seems marginal to me.  Welcome any thoughts!!

 

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JCACE
By jcace
09th Apr 2020 21:49

If he's not going to be doing anything for the company, I don't see any reason why he shouldn't be furloughed, subject to the existing guidance.

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By ABC123Accountant
09th Apr 2020 21:56

Thank you for your response - that was my thought but I think I shall still add caution when giving go ahead to client as this is unprecedented and not directly covered in the guidelines..

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Replying to ABC123Accountant:
Psycho
By Wilson Philips
09th Apr 2020 22:37

I would say that it is explicitly covered in the guidelines. Directors - even sole directors - may be furloughed provided that they do no more than carry out statutory duties.

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Replying to ABC123Accountant:
RLI
By lionofludesch
09th Apr 2020 23:20

ABC123Accountant wrote:

Thank you for your response - that was my thought but I think I shall still add caution when giving go ahead to client as this is unprecedented and not directly covered in the guidelines..

I think you need to read the guidelines.

No problem here. Move along please.

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By paulhammett
09th Apr 2020 22:54

Not a problem providing he doesn’t do any work. Don’t overthink.

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blue sheep
By NH
10th Apr 2020 05:40

Marginal? No its clear cut.

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