This is probably not really a DAK topic - moved to Taxes as this seems a better home for it )chas49)
Good Evening All
I would appreciate any perspective or comments from anyone who has experienced a similar problem to that which I am facing.
I run a small Ltd company providing professional consultancy services.
The lockdown has completely evaporated all my business revenue 100% - due to the nature of the industry (necessitates lots of on-site interaction with trades).
I have paid myself for nearly two decades, as many SME directors do, largely by a mix of basic salary and dividends.
I appreciate there is nothing I can do about the dividends, they are a lost cause. However, via my accountant (who runs my company PAYE payroll), I applied to be furloughed - since there is literally nothing (other than fiduciary duties) I can do until there is a significant re-start of the economy.
I run an annual payroll for myself, paying myself a single lump-sum directors salary at the end of the financial year (March 31st) to limit account PAYE / RTI accountancy costs.
My accountant has come back to me and said HMRC have rejected the furlough application on the grounds that my payroll wasn't filed this FY before the cut-off date of March 19th. (Even though previous annual payrolls have been filed in March 2017, 2018 and 2019. And prior to that monthly director PAYE payrolls filed every month between 2002 and 2017).
This seems grossly unfair and a mere technicality to me. The accountant phoned HMRC to try and appeal to their better judgement. Appears they didn't have any.
Is this legal they can refuse to allow me to claim furlough?
They happily took my income tax and N.I payment in April, and will of course expect my Corporation Tax payment in Jan. But seems a very one-way street currently!
Does anyone have any suggestions?
Much appreciated
SB