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Covid-19 Announcement for Business Owners

This morning HMRC confirmed that limited company directors can be furloughed even if they are the sole employee of the company.

Providing the director was paid via PAYE in the period to the 28th February 2020.

Furloughed company directors can then no longer participate in any revenue work for the firm, but they can perform their statutory obligations as directors (filing accounts etc).

This is the only work that is allowed – they cannot arrange work or deal with customer queries.

The director’s salary will be taken as the average of the 12 months from February dating backwards so salaries cannot be increased in March to claim more under the 80% rule.

The director will not have to resign at Companies House so they can be kept on the company bank account.

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Yesterday our CEO, Chris Bailey took part in a Q&A session to answer some of your most asked Covid-19 questions from last week.

Click here to take you to the video.

Join us next week for another Q&A session with Chris where we will discus the Covid-19 update for business owners.

If you have any concerns on how Covid-19 may affect you or if you have any questions on the above, please click here to contact us now.