Martin Lewis answers your furlough questions

After a huge number of viewers got in touch on Monday, Martin Lewis is back to answer your furlough questions, addressing mortgage holidays and furlough and overtime guidance.

AM I ENTITLED TO A MORTGAGE HOLIDAY?

Question: I was put on furlough on Friday and it's likely that my husband will lose his job soon. We’re worried about our mortgage. Am I entitled to a mortgage holiday or does this not apply because one of us is still working?

Martin says: If you are struggling due to coronavirus, you can get a mortgage holiday. That means you don't pay your mortgage for three months.

The interest still adds up, you will still have to repay later, but I wouldn't worry about that too much if you need the money.

The vast majority of major lenders now let you apply online, and some people get a reply within five minutes. If you need the cashflow you get get a mortgage holiday if you're struggling because of coronavirus.

WILL FURLOUGH PAY MY SON'S OVERTIME?

Question: My son works at a gym and was furloughed when the country went into lockdown. He was told he would be paid 100% of his contracted hours. Although he is contracted for eight hours, he has always worked double that. Will he still be entitled to 80% of his usual hours or 100% of his contracted hours?

Martin says: Furloughing is where you put someone's job on hold and the state covers 80 per cent of their salary. Employers can give more.

Under the guidance of the Coronavirus Job Retention Scheme, you get your usual salary, which includes your wages, any compulsory commission, not discretionary commission, and your regular overtime. So it should be based on what he was regularly earning before.

Basically overtime should be included. It does depend how firms interpret this, but that's absolutely hardcore in the guidance.

I suggest you go the coronavirus guidance on gov.uk, you go and find that little paragraph that says that, and make sure he's got that and notes it to the employer in a very polite way.

ARE COMPANY DIRECTORS GOING TO GET ANY HELP?

Question: Is there any help for company directors of small businesses? Has there been any official response to this question?

Martin says: This is one of those holes in the system. There are many others. Perhaps the biggest one - because this was a deliberate decision by the government, if you are a one man / one woman band working via a limited company, then you normally make most of your money via paying yourself dividends. And those dividends aren't being covered by any scheme.

So the only support that you can have - if you paid yourself PAYE you can furlough yourself from your own limited company, which means the government will support that PAYE income, but that's normally very small.

I am working on a couple of other things people may be able to do, it's not getting the dividends back - I can't see any budging from the government when I've talked to them on that.

When I get this information, I will put it on social media for limited company directors. It's not going to be a great help, I'm just trying to find you a little wriggle room to keep a bit more income coming in.

IS MY COMPANY ABUSING THE FURLOUGH SYSTEM?

Question: I have been told I am being put on furlough, but need to keep working as normal on 80% of our usual salary. We were told over the phone and not in writing. Is this fair that I am working my usual hours on less pay or are my company abusing the system? Is there anything I can do about this?

Martin says: Your company are abusing the system. That is a direct breach of the furlough rules. Employees are not allowed to work for their employees if they are put on furlough.