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Can a sole director be furloughed?

Two reasons why we don’t think a sole director can be furloughed

The question that I am trying to address here is if a sole director can furlough himself or herself

In summary, there are two reasons why I don’t think that this is allowed under the current rules:

  • Reason 1: A company must always have at least one director.
  • Reason 2: Even for dormant companies, things need to be done (tax returns, communications, etc).

In conclusion

For these reasons, it seems to me that HMRC’s furlough statement applies – “If an employee is working, but on reduced hours, or for reduced pay, they will not be eligible for this scheme and you will have to continue paying the employee through your payroll and pay their salary subject to the terms of the employment contract you agreed.” See https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Therefore, in our view, under the current rule, at least one director needs to remain active and can-not benefit from the Government Furlough Scheme.

Two reasons why we don’t think a sole director can be furloughed The question that I am trying to address here is if a sole director can furlough himself or herself In summary, there are two reasons why I don’t think that this is allowed under the current rules: Reason 1: A company must always […]

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