21 April 2020

This update covers the government’s new ‘support finder’ tool, revised advice about annual leave and furlough dos and don’ts for directors. 

Business support finder tool 

The government has launched a new ‘support finder’ tool to help businesses and the self-employed find out what support is available during the coronavirus outbreak. 

You will need to fill in a simple questionnaire and will then be directed to a list of financial help that you may be entitled to. Go to the support finder. 

Updated annual leave advice when on furlough 

Our advice about annual leave and furlough was updated yesterday following government clarification. 

Employees on furlough can take annual leave but employers must top up pay to the normal 100% levels for any holiday taken during the furlough period. Find out more, including advice about telling your employees to take annual leave during furlough.

Directors and furlough

If you are a director of a limited company you can furlough yourself if you are paid via PAYE, although most of your earnings will be through dividends. You can claim 80% of your PAYE wages (before tax and deductions) as of 28 February 2020.

But if you are furloughed you can’t do any work which generates income or provides services to the salon/barbershop. You can only do statutory duties, for example running your payroll, paying bills, keeping in touch with staff or filing VAT returns.

This rules out money-making activities such as selling gift vouchers, taking future appointments or retail sales. It also rules out services such as promoting the salon, contacting clients on social media, sorting out your paperwork or reviewing your finances.

If you want to do these things, you need to come off furlough. See our director FAQs.

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