2. What to do as your business income disappears as you cannot work?

In the next of the series I am looking at what you can do if you have a payroll and therefore employees (including directors) on the payroll.

Staff:

1. SSP – If your employee is sick or have to self-isolate then you pay SSP from the first day for them and HMRC will repay 80% of this money to the company. But your employee will need to get a sick note from 111 to confirm that they are sick or self-isolating and let you have this as proof.

2. Furlough. This is like being “laid off”, but still being employed, so will be expected to return to work when there is work to do. But to do this they need to stop working completely. In plain English this in doing work which produces income for your business, or doing their normal job either at work or at home has stopped because there is nothing for them to do.
– The government will repay 80% of the monthly income to the company. This can be back dated to a date you can identify when they stopped working.  You should give the individual a “furlough” letter to confirm the details, and provide proof that you have done this.

Directors

1. SSP – If you are sick or have to self-isolate then you can claim SSP from the company and HMRC will repay 80% of this money to the company. But you will need to get a sick note from 111 to confirm that you are sick or self-isolating as proof.

2. Furlough yourself. But to do this you need to stop working completely, except for simple statutory duties for the company. In plain English you need to stop doing work which produces income for your business and the business income has stopped.
– The government will repay 80% of your monthly income to the company. This can be back dated to a date you can identify when you stopped working. You should make a note when the business income ceased, and when you stopped doing any work which produced income for the company.

 

Furlough Template: