Can you furlough a director?

Can you furlough a director?

 

Yes, you can furlough directors provided they receive a salary through your PAYE system.

Many directors receive a salary from their organisation and then additionally take an annual dividend.  The dividend is not covered by the government’s job retention scheme but the salary is covered.  That is 80% up to £2,500 a month whichever is the lower.

Of course, directors have statutory obligations in addition to their day to day work in the organisation.  Government guidance states that even when furloughed, directors can continue to undertake their statutory obligations provided they “do no more than is reasonably necessary”.

Need help?  You can contact me, Brenda Roper, on 07766 167160 or through my website www.bdroper-hr.co.uk

 

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