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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6563
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I need to furlough myself. I am on PAYE through my own

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I need to furlough myself. I am on PAYE through my own limited company. I pay myself a salary each month of c£900 and then take a fixed monthly dividend of £3600My main source of income through my business is supplying my services to a software company who is involved in the leisure industry. Their business has been hit very hard by the coronavirus and they will be unable to pay me/use my services until this crisis is over.Am I able to apply for the government grant as I have no work? Will my fixed monthly dividend be taken into account as part of my income?

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

If you furlough yourself, it means you would not do any work for the company. I foresee issues where you are a sole director/employee of your company. Who would carry out admin duties during this period?

Furthermore, dividends would not be taken into account in working out 80% payment, it would be based on salary of £900pm.

My aim is to give you a professional service. I hope this is helpful and answers your question.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 3 days ago.
Thanks for the reply. There are very little admin duties normally which are normally undertaken by wife in her spare time but she is not employed by the business.

Thank you for your reply.

If you furlough, you should not do any work on behalf of the company during the period you are on furlough leave.

The company needs to advise you that you are furloughed to be eligible for the scheme.

The company will get 80% of £900 for a period to be finalised by the Government (initially 3 months).

I hope this is helpful and answers your question.

Hi there

Just checking to see if you need more clarification/information or have I answered your question.

Many thanks

Customer: replied 3 days ago.
No, I think you have answered....not great for my situation :(

Thank you for your reply.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen to ensure I get credited for it by Just Answer today. and other Tax Specialists are ready to help you

I thank you for accepting my answer.

Best wishes.