Furlough / PAYE / Contractor help please

[trancem]

Hi guys

Sorry for the new thread, but I've searched the forum using search and also trawled through the existing threads but cannot find an answer.

I have been contracting under my own limited company for the past 2 years or so. Since the 1st of March I have moved to an Umbrella company but I'm still working for the same client.

I have heard it is possible for me to be furloughed through my existing Limited Company as I used to pay myself a salary through PAYE.

Can i still do this even though I'm currently employed by and working for the Umbrella company?

Thanks for any help

Edited by trancem on Friday 12th June 21:18

[CzechItOut]

When did you last pay yourself (PAYE not dividends) via your limited company?

[deggles]

trancem said:

Hi guys

Sorry for the new thread, but I've searched the forum using search and also trawled through the existing threads but cannot find an answer.

I have been contracting under my own limited company for the past 2 years or so. Since the 1st of March I have moved to an Umbrella company but I'm still working for the same client.

I have heard it is possible for me to be furloughed through my existing Limited Company as I used to pay myself a salary through PAYE.

Can i still do this even though I'm currently employed by and working for the Umbrella company?

Thanks for any help

I presume by furlough you mean making a claim for a government grant under the Job Retention Scheme?

I don't think there's anything in the rules that would stop you making a claim. You just have to declare:

HMRC web site said:

By submitting your claim, you are confirming the following:

• you are claiming costs of employing furloughed employees arising from the health, social and economic emergency resulting from coronavirus
• your claim is in accordance with HMRC’s published guidance
• the information you have provided is correct, to the best of your knowledge
• all employees have been paid their wages before the claim was submitted, or will be paid in the next payroll
• if any of this information changes, you will contact HMRC to amend the claim

... which I think is sufficiently vague for you to qualify.

Given they will have ongoing PAYE submissions from your new employer, though, it's possible the claim would be flagged for review if not declined. I would expect a phone call at the very least. Do you want to open that can of worms?

Edited by deggles on Thursday 11th June 13:55

[hacksaw]

Pretty sure that the cut off date for people being furloughed was yesterday?

[dibblecorse]

So just to clarify, you are still working, still being paid and suffering no financial impact, but are seeking to double dip using your Ltd company as the vehicle for that?

[xx99xx]

dibblecorse said:

So just to clarify, you are still working, still being paid and suffering no financial impact, but are seeking to double dip using your Ltd company as the vehicle for that?

Yes, good point. I'd say the very least, this sort of thing is frowned upon.

[trancem]

dibblecorse said:

So just to clarify, you are still working, still being paid and suffering no financial impact, but are seeking to double dip using your Ltd company as the vehicle for that?

Correct. That is the question I am asking. I am suffering a financial impact actually, since I moved over to umbrella company I am earning alot less than before

[trancem]

CzechItOut said:

When did you last pay yourself (PAYE not dividends) via your limited company?

In March before the next financial tax year

[Ham_and_Jam]

As already mentioned, you have missed the cut off date for furlough.

Last date for NEW entrants to the JRS (not been previously furloughed) was 10 June.

[Countdown]

trancem said:

dibblecorse said:

So just to clarify, you are still working, still being paid and suffering no financial impact, but are seeking to double dip using your Ltd company as the vehicle for that?

Correct. That is the question I am asking. I am suffering a financial impact actually, since I moved over to umbrella company I am earning alot less than before

if you're working for the same client/doing the same job why are you earning a lot less?

[trancem]

Countdown said:

if you're working for the same client/doing the same job why are you earning a lot less?

IR35.

Thanks for the help guys. Looks like I may have missed out on the cut off date as above

[GT03ROB]

trancem said:

dibblecorse said:

So just to clarify, you are still working, still being paid and suffering no financial impact, but are seeking to double dip using your Ltd company as the vehicle for that?

Correct. That is the question I am asking. I am suffering a financial impact actually, since I moved over to umbrella company I am earning alot less than before

But that's nothing to do with CV19 is it?

[itsnotarace]

Classic

[dibblecorse]

trancem said:

dibblecorse said:

So just to clarify, you are still working, still being paid and suffering no financial impact, but are seeking to double dip using your Ltd company as the vehicle for that?

Correct. That is the question I am asking. I am suffering a financial impact actually, since I moved over to umbrella company I am earning alot less than before

in that case, f*** off you sponging lowlife, its the rest of that will have to pay for this, and you're earning less because you're obviously no longer outside IR35 and thats our problem because ??

Go get a new gig or a new job if you don't think you're being paid enough, the furlough scheme isn't a top up service, be grateful you still have a job, whilst many around us are losing theirs.

[trancem]

Want some tissues pal?

Thanks for those that helped

[MaxFromage]

trancem said:

IR35.

Thanks for the help guys. Looks like I may have missed out on the cut off date as above

You haven't missed the cut-off date, you could just say you were furloughed earlier. In fact, go all the way back to March to get the max out the taxpayer. Whatever you do though, make sure you close down your payroll and business asap without declaring a salary for the year.

















That way, HMRC are more likely to pick you up for fraud.

[trancem]

I am not trying to defraud hmrc or anything. Somebody at work heard this was possible so I was trying to get more info. Who wouldn't want any extra money in these uncertain times??

For what it's worth all my accounts are done properly and I pay the correct taxes etc. I should hope so anyway with paying my accountant over £100 a month!

[Countdown]

Out of interest why didn't you ask your Accountant? Surely he would have been the most appropriate person to ask.....

[GT03ROB]

Countdown said:

Out of interest why didn't you ask your Accountant? Surely he would have been the most appropriate person to ask.....

Probably because he saw it for what it was.....