Directors and Furlough

Can a company director who is in Furlough take on a new job?

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One of my clients has a company that has no work currently because of the crisis, so the directors are going into Furlough.  The wife has a background in the care industry and has been offered work, as the care industry is crying out for staff right now.  However, the earnings will be less than the £575 that is to be recovered through CJRS, so it is not worth taking the work if it risks the company's claim to the CJRS grant.  The HMRC employer guidance that was updated last Friday indicates that employees on Furlough can take on new employments, but it is not clear whether this also applies to Directors.  The ICAEW has been my go to source for clafification, but doesnt seem to have been update this week.  Has anyone seen any clearer guidance on this?

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By paul.benny
09th Apr 2020 14:28

This is another take on the question of whether PSC directors can participate in the JRS. There has been nothing in the guidance to date to suggest that there are special rules or restrictions applying to company directors.

I see no reason why your client shouldn't take on other paid work while claiming under the JRS.

On a practical note, he should complete a P46 for the new employer saying he has another job. He should not issue a P45 from his current employment or he will then drop off the JRS.

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