Coronavirus Job Retention Scheme: Directors

(asked on 1st May 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether the director of a limited company in which all employees are furloughed is permitted under the Coronavirus Job Retention Scheme to undertake work that is not revenue generating and is to pursue future sales.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 6th May 2020

As noted in the Coronavirus Job Retention Scheme guidance, company directors are bound by the Companies Act 2006 to fulfil their statutory duties. The Government aims to ensure that salaried directors can be furloughed and supported through this scheme, and that they are still able to meet their statutory duties. The guidance is clear that directors should do no more work than would reasonably be judged necessary to meet their statutory requirements, and that they should not do work of a kind they would carry out in normal circumstances to generate commercial revenue, or provide services to or on behalf of their company.

This scheme supplements the other significant support announced for UK businesses, including the Bounce Back Loans Scheme for small businesses, the Coronavirus Business Interruption Loan Scheme, and the deferral of tax payments. More information about the full range of business support measures is available at www.businesssupport.gov.uk/coronavirus-business-support/.

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