Coronavirus Job Retention Scheme: Directors

(asked on 16th December 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment the Government has made of the potential merits of reforming the Coronavirus Job Retention Scheme to allow directors of small limited companies to undertake work while on furlough to support the economic viability of those companies.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 15th January 2021

Where furloughed directors need to carry out particular duties to fulfil their statutory obligations, they may do so provided it is no more than would reasonably be judged necessary for that purpose. In particular, 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 also applies to companies with a sole director.

Businesses that can remain open but are operating with reduced demand can use flexible furlough to keep staff working part time.

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