Published On: Mon, Apr 6th, 2020

Martin Lewis explains how you can furlough YOURSELF during the coronavirus pandemic | Personal Finance | Finance

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Martin Lewis told the Emma Barnett Show that self-employed people who own a PAYE company can furlough themselves and receive 80 percent of their salary up to £2,500 a month. The money-saving expert also outlined the issues with taking this approach, such as the business owner being unable to work for their limited company. 

Mr Lewis said: “The first thing is while you can’t get support for dividends, the PAYE element of limited companies that sole employers for limited companies pay themselves, you can furlough yourself.

“So, if half your salary was from that, you could put yourself on furlough, get the Government to pay 80 percent of that salary up to £2,500 a month.

“That would give you some income.

“The problem with that is then you can’t work for your limited company.”

READ MORE: Martin Lewis issues urgent mortgage holiday update on credit rating

He added: “I have had clarification that what you can do is do the minimum statutory duty that you would have as a director of a limited company even if you were furloughed.

“The obvious is filing returns to companies house.

“What I am trying to get more clarification on is exactly what else comes in that statutory obligation.

“Could you for example take calls from clients who are making complaints about you?

“Because if furloughing a worker fulfils the two concepts behind it then generally the answer is you can furlough them.

“Number one to provide financial support to the victims of the coronavirus economic cataclysm.

“If you are a victim of that then the furlough scheme if you are an employer should be trying to help you.”

“The second one is to ensure that the economy can be restarted at speed.”

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