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One director , two companies, furloughed twice?

One director , two companies, furloughed twice?

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Can a director Furlough him or herself twice or more,

 

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By Duggimon
30th Mar 2020 14:01

Let me just check the detailed guidance on that...

If you want my guess, they can probably claim under both, subject to an overall cap of £2500 a month but that's a guess as the detailed guidance to which I refer doesn't exist.

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Replying to Duggimon:
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By CW2012
30th Mar 2020 14:20

So the overall cap relates to a person not a role / job. I'm sure this has been done to death but I'm getting that many queries re job / business support schemes that I'm struggling to get any accounts done, tomorrows 31st March and Ive got a couple left to file. Is anybody else struggling to do the usual practice related functions like accounts and tax returns.

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Replying to CW2012:
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By Wanderer
30th Mar 2020 14:28

CW2012 wrote:

So the overall cap relates to a person not a role / job.

Nope, the complete opposite:-
https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronav...
gov.uk wrote:

If you currently have more than one employer
You can be put on furlough by one employer and continue to work for another, if it is permitted within your employment contract.

If you’re put on furlough by more than one employer, you’ll receive separate payments from each employer. The 80% of your normal wage up to a £2,500 monthly cap applies to each job.

https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronav...
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Replying to Wanderer:
By Duggimon
30th Mar 2020 15:18

Wow, I hadn't seen that, thanks.

I'm not convinced it says what it means, but it does say what you say it says.

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By Mr_awol
30th Mar 2020 14:49

Was the director taking a salary from both companies in Feb?

It would be unusual, for sure...…..

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Replying to Mr_awol:
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By CW2012
30th Mar 2020 14:53

Hi I havent got as far as asking that, but I thought this was a question that I'd hear again,

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By Comptable
30th Mar 2020 15:41

At a time like this when the Government is trying to help those who are losing out because of the pandemic there is something extremely distasteful about people trying to game the system and grab all they can.
Yes is is true that the rules are not clear (or in some areas not even written) but to try and grab two lots of £2500, when clearly it was never intended that some people should get two (or more) support packages is surely unacceptable.
Think about your children and grandchildren, who will be paying for all of this. How would they feel if the knew what you had done?

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Replying to Comptable:
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By Wanderer
30th Mar 2020 15:50

Comptable wrote:

Yes is is true that the rules are not clear (or in some areas not even written) but to try and grab two lots of £2500, when clearly it was never intended that some people should get two (or more) support packages is surely unacceptable.

It would be quite an unusual situation for this to apply, You'd be looking at two employments both at a gross of over £37,500 each or an employment + self employment both over £37,500 with the self employment at a higher level than the employment.
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Replying to Comptable:
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By CW2012
30th Mar 2020 15:55

I am entirely in agreement with you, however I was asked a question that I didn't have the knowledge to answer, now I do, at least once you have the information you can make that moral judgement call.

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Replying to CW2012:
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By unearned luck
30th Mar 2020 17:13

What moral judgment call is that? How can it be immoral to claim something exactly how the law (as outlined in the published guidance) intended it to be claimed, which is so despite Comptable's unfounded assertion. Remember the two employments must be unconnected and the claimant could not have arranged to be in this relatively fortunate position by 'gaining the system' unless he had a very good crystal ball and the ability to arrange his working life with two well paid unconnected employments.

The person in Wanderer's example will have to repay all his child benefit whereas the couple next door with a household income of £100K that is split equally between them get to keep all their child benefit. Could he omit the HICBC from his return on moral grounds? Tax isn't fair and nor are these CV support measures, they are arbitrary. Take for example the SE cut-off. A with profits of £49,999 can claim the maximum where as B with income of £50,001 can't claim anything.

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By SXGuy
30th Mar 2020 17:36

It would be quite reasonable for two employers to furlough the same person in both employments so the argument of morality is a dead one in my opinion. And I see no reason why the director couldn't apply the same logic, providing they were employed in both companies.

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