Can directors on PAYE furlough under the coronavirus retention Scheme?

can directors get the 80% grant

We understand, that if directors are salaries through your company’s PAYE scheme they can be furloughed and benefit from the 80% grant for their salary during the coronavirus pandemic. 

The HMRC guidance shows that directors of their own company and who pay themselves through PAYE should be able to apply for the coronavirus job retention scheme. Therefore the rules which apply to employees also apply to directors.

Businesses are able to apply for grants for employee salaries up to the lower of 80% of the employees salary or £2500 per month for 3 months from 1 March. The scheme is most likely to run as long as the coronavirus pandemic runs.

It is key that for grants to be issue the employee needs to have been on the payroll on 28th February 2020 and they must not work while they are on furlough. At the moment it is not clear if directors can work during this furlough period.

Most bodies are believe that HMRC will recognise this situation is unique and take a pragmatic approach.

Please get in touch with us if you need any help, we know that the coronavirus is hitting businesses hard and we are more than happy to answer questions. Contact us here

Quickbooks Discounts of up to 50%

We have access to lifetime discounts on Quickbooks of up to 50%, even without subscribing to our services we  can give you access to these cheaper rates. Just let us know during the call and we can give you our latest pricing.

Ben Sztejka ACA

Ben Sztejka ACA

I am an ICAEW Chartered Accountant with one core belief, make accounting as pain free as possible and focus on adding value to businesses.

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Contact

Your Cloud Accountant is a national accountancy firm providing a flexible, more efficient and better value than a traditional high-street accountant.

You will get the best business advice and accountancy for freelancers, contractors, self-employed, and small businesses.

Let us help you, so you can focus on growing your busines

You May Also like

What is VAT Moss?

Are you selling digital downloads or online services? If you sell to the EU you need to register for VAT moss to ensure you remain within the EU law.

Read More »