Directors and Furlough

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HM Revenue & Customs have updated their guidance on the Coronavirus Job Retention scheme on 4 April 2020.

The new guidance confirms directors are able to be furloughed and where this decision is made it should be formally recorded in the company’s record and the director notified in writing.

With regards to what a furloughed director is able to do for the company the guidance states:

“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.”

You can read the full updated guidance on the GOV.Uk website.

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