Share this content
9

Job retention scheme for single directors?

Companies with a single director will not be able to furlough them?

Didn't find your answer?

It is my understanding that companies who only have one director will not be able to furlough them and make a claim under the job retention scheme, as this would contravene the Companies Act.  Would it be possible to now appoint a second unpaid director to carry out the necessary duties to run the company and then furlough the original paid director?

Replies (9)

Please login or register to join the discussion.

avatar
By Accountant A
15th Jun 2020 20:32

]9y

Thanks (0)
Replying to Accountant A:
avatar
By Kezza43
27th Mar 2020 11:41

Please can you tell me why not?

Thanks (0)
Replying to Kezza43:
avatar
By insolventnl
27th Mar 2020 12:28

Kezza43 wrote:

Please can you tell me why not?

Because anyone can see this is done PURELY to take money from the treasury and play the system. Not honest and a reality of the business

Thanks (0)
Replying to insolventnl:
avatar
By Kezza43
27th Mar 2020 12:32

But the sole director is a genuine employee of the company and performs actual work. Why should they be penalised?

Thanks (0)
Replying to Kezza43:
avatar
By insolventnl
27th Mar 2020 15:41

Kezza43 wrote:

But the sole director is a genuine employee of the company and performs actual work. Why should they be penalised?

I think the use of the word penalised is wrong.

But its simple -> you willingly choose this route to pay less tax; ie give less to the government.
Now when the bailout is from tax money, should you be allowed to get a bail out when you input less, by startegy?

Thanks (0)
Replying to insolventnl:
avatar
By Kezza43
27th Mar 2020 16:00

The route the people you refer to is within the rules. However, the client I have in mind does take a commercial salary by choice, and therefore does not fit your scenario of low salary high dividends. Therefore my question still stands. Can a sole director furlough themselves?

Thanks (0)
avatar
By carnmores
27th Mar 2020 12:15

you have to differentiate between duties as a director and as an employee. a company can appoint a new director anytime it likes.

Thanks (1)
Replying to carnmores:
avatar
By Kezza43
27th Mar 2020 12:30

That's what I thought. The newly appointed unpaid director would be responsible for the statutory duties. The original director to be furloughed is a genuine employee of the company and does actual work!

Thanks (0)
Replying to Kezza43:
avatar
By legerman
27th Mar 2020 13:16

Kezza43 wrote:

That's what I thought. The newly appointed unpaid director would be responsible for the statutory duties. The original director to be furloughed is a genuine employee of the company and does actual work!

Providing the single Director is not doing work in order to generate income he can be furloughed.

Thanks (1)
Share this content

Related posts