Company A has lost all trade temporarily as works predominatly in the travel sector
Company B , an associated business (by common private control ie.not parent\ subsidiary ) has other similar business development work (but not trading income) that could be undertaken by many of the employees furloghed by Company A (for a temproary period of time , likely to be up to 31st May 2020)
The goverment advice states that furloughed employees are allowed to take on other work while being furloughed
How would HMRC look upon the above arrangment ?
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From the guidance on Gov.uk:
https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronav...
“ While you’re on furlough
Once you are on furlough you will not be able to work for your employer. You can undertake training or volunteer subject to public health guidance, as long as you’re not:
- making money for your employer or a company linked or associated to your employer
- providing services to your employer or a company linked or associated to your employer”
Except we don't have any legislation, only guidance. e.g. what exactly does 'linked' and 'associated' mean?
