Like many of us this the area driving me nuts through lack of precise guidance from the government. I'm trying to get it clear in my mind what might be deemed reasonable condsiderations for furloughing a Director (in the absence of clear guidance)
2 Directors (say 2 spouses). If one Director can do all the work then probably reasonable to furlough the other Director
Sole Director (or remaining Director if 2).
Acceptable activities possibly allowed if this last Director is furloughed
Filing Accounts
Bookkeeping
VAT and PAYE and CT returns
Banking money received from customers
Paying suppliers (pre furlough invoices)
Opening the post
Replying to emails
Unacceptable activities that would preclude furlough
Invoicing customers
Marketing of any kind (including social media)
Receiving stock from suppliers
Travel
Of course whatever is decided the Directors will need to approve the furlough via a Borad Meeting and documented in Company records
If colleagues could agree or disagree with the above list or add their thoughts or interpretations to it that would be very helpful. Clearly adopting a reasonable approach is all we can try to do.
For March I have run Director payrolls as normal and told clients we will need to wait and see if the government provide further clarification before claims can be made for April in late April
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Some new clarifying guidence updated for officers and directors . I think particularly as a PSC if you've done the work the director could bill to try and get paid for work done and if there's no-one else receive stock but not business generation. In principle furloughing is laying off so only critical mimimal corporate duties might qualify as an officer. If you weren't paid as an officer but an employee (the duties of which are now furloughed) did you have an employment contract justifying the employed salary and did you comply with or commonly niot to avoid Auto enrollment ? Begins to put spotlight on what directors salaries ar for.
"Filing Accounts
Bookkeeping
VAT and PAYE and CT returns
Banking money received from customers
Paying suppliers (pre furlough invoices)
Opening the post
Replying to emails
Invoicing customers
Marketing of any kind (including social media)
Receiving stock from suppliers
Travel"
All those are OK except the marketing one.
Travel ? Maybe. Depends why you're travelling.
Thing is its a big "dunno"
I went in the other direction and in my guidance and said stat duties, record keeping and not much else unless it was a "trivial" activity. Eg if a customer phones up to say they are back up an running in 2 weeks, that seems OK, but if you then spend a day planning for it, then you are clearly "working"
if a customer phones up to say they are back up an running in 2 weeks, that seems OK, but if you then spend a day planning for it, then you are clearly "working"
Agree.
By the way, who's policing this ?
Thanks Lion.
Not sure about the raising of sales invoices.
I suppose if the invoice relates to work done pre furlough its okay but if its work done post furlough clearly not.
If you do work whilst on furlough, billing it is fine.
Because you weren't on furlough after all !!
If you're not doing the work and you're not seeking new work and you're not actively preparing to make the new work easier to do when you finally are able to do it then I'd say you're fine.
Just an opinion because it's all we have to go on, but I wouldn't lose sleep over putting in a furlough claim for a director who I knew had sent out some invoices for work done in February. Particularly if they're strapped for cash and have staff to pay.
In regards to a sole director, what do you think, is running a Payroll, paying salary to yourself and claiming CJRS grant every pay period (since it is also a work to generate income, CJRS is income in tax perspective) is allowed while being furloughed?
This is what I need to do as a sole director.
In regards to a sole director, what do you think, is running a Payroll, paying salary to yourself and claiming CJRS grant every pay period (since it is also a work to generate income, CJRS is income in tax perspective) is allowed while being furloughed?
This is what I need to do as a sole director.
You think that claiming the grant disqualifies you from claiming the grant ?