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).
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 ca […]