The Government has updated its Employee Job Retention Scheme pages with more details:-
Eligible individuals who are not employees
As well as employees, the grant can be claimed for any of the following groups, if they are paid via PAYE:
office holders (including company directors)
salaried members of Limited Liability Partnerships (LLPs)
agency workers (including those employed by umbrella companies)
limb (b) workers
So Directors can be furloughed, provided that they are paid through PAYE and they were on the payroll on or before 28 February 2020.
As office holders, salaried company directors are eligible to be furloughed and receive support through this scheme. Company directors owe duties to their company which are set out in the Companies Act 2006. Where a company (acting through its board of directors) considers that it is in compliance with the statutory duties of one or more of its individual salaried directors, the board can decide that such directors should be furloughed. Where one or more individual directors’ furlough is so decided by the board, this should be formally adopted as a decision of the company, noted in the company records and communicated in writing to the director(s) concerned.
Where furloughed directors need to carry out particular duties to fulfil the statutory obligations they owe to their company, they may do so provided they do no more than would reasonably be judged necessary for that purpose, for instance, they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue or provides services to or on behalf of their company.
This also applies to salaried individuals who are directors of their own personal service company (PSC).
As yet, the online service we will use to claim is not available. The Government expects it to be available by the end of April 2020.
We have put a link below to the recent Accounting Web article on the updated details for CJRS. This covers a little bit more of the “nitty-gritty”.
