Normally, directors who receive a small salary and the rest of their yearly income by way of dividends make an annual payroll declaration (rather than monthly declaration which is the case for most employers) of their salary position. The annual declarations have been historically allowed by HMRC to save on administrative costs for these companies.
It appears that if the payroll run date on the declaration (known as the RTI submission) is dated after 19 March 2020, which will be the case for most annual payrolls, then currently these directors who have furloughed themselves will not be able to claim via the HMRC portal under the CJRS.
We understand that HMRC are aware of the issue and will update their guidance in this area shortly. It is hoped that this updated guidance will confirm how these companies will be able to make a claim under the CJRS.
Please keep an eye on our coronavirus support hub for further updates on this. Should you require advice or support with claiming under the scheme, please contact Jonathan Cunningham using the button below.
This information is correct as of 24 April 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.