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Coronavirus (COVID-19): Furlough Claim Guide for Director 

This guide outlines the key steps you need to take in order to make a furlough claim as a Director of a PSC

Click here to visit our Covid-19 hub for more updates>>

Are you eligible to be furloughed?

If your contract has been suspended, terminated, or postponed, or you simply cannot find further work because of the current Covid-19 crisis you may be eligible for the Governments Job Retention Scheme.

As a director of your own Personal Service Company (PSC), you can “agree” to furlough yourself in your role as an income generating employee. This will not prohibit you from carrying out your statutory duties as a Director. For completeness you should formally document your decision to furlough yourself and sign a formal furlough agreement. We can provide you with a suitable template letter.

To be able to claim the Job Retention Scheme grant you must have registered your Company’s PAYE scheme on or before 19 March 2020 and you should have reported your salary on an RTI on or before the same date.
The minimum period of furlough is three weeks.

What can you claim?

The scheme allows you to claim 80% of your regular salary, up to a maximum of £2,500 per month. In addition, you can claim the associated Employers National Insurance and any auto-enrolment pension contributions that you currently pay.

Dividend payments are excluded from the calculations.

Furlough claims can be back dated to 1 March 2020 but should only start from the date that you cease to work for your company.

How is the money through furlough calculated as a contractor?

The 80% grant is based on your gross salary for the last paid period prior to the 19th March 2020. For example:
Contractor A reported a gross salary of £750 on his February RTI. He the furloughs himself from 1 March 2020 and remains furloughed until 31 May 2020.



February 2020       


March 2020

£600 (80% of February's salary)

April 2020

£600 (80% of February's salary)

May 2020

£600 (80% of February's salary)

June 2020


If you are furloughed for part of a month, your furlough grant will need to be pro-rated on a daily basis and your take home pay will be a combination of furlough pay and usual gross pay. For example, Contractor A returns to work on 10 May. The gross salary payments for February, March, and April remain as above. For May, Contractor A will receive £193 furlough pay (being 10/31 of £600) and £508 normal gross pay (being 21/31 of £750).

How do I apply for the job retention scheme?

The application for the job retention scheme can only be completed online. Simply click on the following link to get started:

Your accountant can make the claim on your behalf if they are registered as your PAYE Agent.

What documentation will I need in order to apply for the scheme?

If you wish to make the claim yourself you will need to ensure you have your Government Gateway ID and Password. The HMRC gateway is an online portal that allows you to register for government services.

If you do not have a Government Gateway ID or password, click the following link to apply now: Your activation code will take between 7-10 working days to arrive in the post. Registering now for the Government Gateway will delay your application and grant.

When making the application you will need the following information:

  • Your UK bank account number and sort code 

  • Your employer PAYE scheme reference number

  • Each employee’s National Insurance number

  • The start date and end date of the claim

  • Your Corporation Tax unique taxpayer reference

  • The full amount you’re claiming for including employer National Insurance contributions and employer minimum pension contributions

  • Your phone number

  • Contact name

How long does the process take?

The process is straightforward for one director companies and as long as you have all the information to hand, it will take only a few minutes to make your application. Of course it is even quicker if you ask your accountant to make the claim!

How often can I make a claim?

You can make one claim per claim period. Effectively that means that if you are paid monthly, you should make one claim per month.

How long will it take for me to know my application has been successful?

At the end of your submission, HMRC will issue a claim reference. HMRC have confirmed that all money will be paid into the nominated bank account within 6 working days of your claim being submitted.

If you’re not with us yet and have questions about this issue, or if we can help in any way, please contact our expert team on 01296 468 483 or email

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