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