Background
The Government is bringing in a scheme for help with payments to employees who are furloughed as a result of the Coronavirus outbreak. Furloughed means, sent home with no work. For your employees who agree to be furloughed, the Government has committed to provide you with financial help for paying them based on 80 per cent of the salary up to a maximum of £2,500 per month. The systems for claiming the help are in the process of being set up.
Are directors eligible?
Up till now, the Government guidance has referred to staff and not directors. However, having just now spoken to the Department for Business, it has now been confirmed to us that directors are eligible.
Conclusion
If, as a result of business interruption due to the Coronavirus precautions, you have had to stop working in your business, you may furlough yourself, even though you are a director. You should therefore become eligible for Government help with payment towards your salary, when it becomes available.
– By Stephen Handley, FCCA