Can landlords with their own ltd company claim 80% furlough?

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    Can landlords with their own ltd company claim 80% furlough?

    Company owns 2 properties, both managed by good agents. Already one tenant has said they will struggle with rent etc
    Given that directors are allowed to furlough themselves if they do no work other than fulfilling their legal obligations as directors, I'm wondering if directors could claim 80% of their PAYE if set up as limited companies?
    Basically there is the requirement to do no work, but with managing agents, it would be relatively easy to step back.

    #2
    Does not sound right to me. It's hardly worth setting up a Ltd company to manage 2 properties.

    At a time like this do you need to be scamming the government?




    Freedom at the point of zero............

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      #3
      In my honest opinion you have answered the question yourself in your first Paragraph , You do nothing in terms of running the business including management , essential repairs etc so to avoid any misunderstanding the answer is NO.

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        #4
        It's not clear whether you're already director of such a company or thinking of setting up one.
        I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

        I do not answer questions through private messages which should be posted publicly on the forum.

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          #5
          Yes, the company can claim 80% of their PAYE salary if their income has stopped.

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            #6
            Originally posted by KTC View Post
            It's not clear whether you're already director of such a company or thinking of setting up one.
            Already set up like this. Income is paid out as PAYE (and reported to hmrc monthly) and dividends.

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              #7
              https://www.gov.uk/guidance/claim-fo...tention-scheme

              You must have:
              • created and started a PAYE payroll scheme on or before 28 February 2020 .....
              • Where the office holder is a company director or member of a Limited Liability Partnership (LLP), the furlough arrangements should be adopted formally as a decision of the company or LLP. ..........
              • 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 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).
              I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

              I do not answer questions through private messages which should be posted publicly on the forum.

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                #8
                Well that all applies, the only bit of doubt is "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. .........."
                Given that the properties are managed, there often can be nothing much for the director to do. So if normally they do virtually nothing, how is that different to now?

                The intention is that if I could claim the furlough workers 80% back, I could be more generous to the tenants.

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                  #9
                  Sounds like fraud to me. But there will be a lot of that because they opened the system wide to allow fraud.

                  And why, pray, should I as a taxpayer, pay for you to receive a handout to (supposedly) give to your tenants.

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                    #10
                    It would be fraud, I suspect because the scheme is only available where "you cannot maintain your current workforce because your operations have been severely affected by coronavirus (COVID-19)".

                    By applying for the scheme you are confirming that this is the case, and, for all I know (and hope) would have to explicitly declare that as part of the application.
                    And it isn't the case, your operations and workforce, which is you from the sound of it, "severely affected" by the virus.

                    You may meet the other criteria, but you don't meet the main one.
                    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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                      #11
                      To give another example: If a home worker (say one who does translation work) continues working at home as before and suffers no loss of income, then claims an additional 80% bonus on their salary - that will be fraud.

                      But there will be a lot of that, which is why UK PLC is likely to go down the tubes as money is printed to fund all the scam artists ....

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                        #12
                        Originally posted by jpkeates View Post
                        I suspect because the scheme is only available where "you cannot maintain your current workforce because your operations have been severely affected by coronavirus (COVID-19)".
                        To be fair, that clarification was only posted recently. The wordings was originally slightly different.

                        I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

                        I do not answer questions through private messages which should be posted publicly on the forum.

                        Comment


                          #13
                          Originally posted by KTC View Post
                          To be fair, that clarification was only posted recently. The wordings was originally slightly different.
                          I'd love to see what you have to complete to get this support.

                          And I suspect that HMRC has plans to "review" recipients after the crisis is over.
                          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                          Comment


                            #14
                            Originally posted by redcarnations View Post
                            The intention is that if I could claim the furlough workers 80% back, I could be more generous to the tenants.
                            You cannot do that because that would be doing work for your business.

                            And if you were able to claim, then you would not be able to communicate with your agent because that would be doing work for your business.

                            As a landlord your business is not, in theory, loosing any income: it is still providing accommodation and the T is obliged to pay the rent.

                            Comment


                              #15
                              Martin Lewis has no clarified with hmrc that you can do basic admin tasks.
                              Actually I have already lost one person out of an hmo; who decided that returning to the "herd immunity" of Sweden was preferable to lockdown in an HMO. Can't say I blame him, but agreeing a termination of the tenancy, with one more rents payment was the best I could get in the circumstances.

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