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Where Taxpayers and Advisers Meet

Covid 19 help for small limited companies

DJ314159
Posts: 51
Joined: Wed Aug 06, 2008 3:34 pm

Covid 19 help for small limited companies

Postby DJ314159 » Thu Mar 26, 2020 7:50 pm

Are those who are a sole director of a small limited company, turning over less than £50k per year, say, and taking an annual salary (as the unique employee of the company) of £8,632 (NI limit) and the rest as dividends, falling through the cracks in the recent aid announced by the government? That is how I am reading things at the moment. Would welcome the opinions of others.

darthblingbling
Posts: 326
Joined: Wed Aug 02, 2017 9:09 pm

Re: Covid 19 help for small limited companies

Postby darthblingbling » Thu Mar 26, 2020 8:56 pm

Yup. Although I guess you could furlough yourself and get 80% of what you declared as employment income

D&C
Posts: 28
Joined: Mon Nov 25, 2019 11:35 pm

Re: Covid 19 help for small limited companies

Postby D&C » Fri Mar 27, 2020 9:10 am

As a sole director how on earth could they furlough themselves and get 80%?

Who is going to be in a position to claim the 80%?

They are either furloughed - doing absolutely no work for the company - or not. You cannot be furloughed and still deal with company admin.

DJ314159
Posts: 51
Joined: Wed Aug 06, 2008 3:34 pm

Re: Covid 19 help for small limited companies

Postby DJ314159 » Fri Mar 27, 2020 9:32 am

Thanks for your replies. Was trying to work out the implications of getting that 80% (at the moment only 80% of some fraction of the annual £8,632), but maybe it would not be worth it or even possible. Anyway, new rules seem to be appearing on a daily basis so I can only wait and see. Not hopeful though!

robbob
Posts: 2914
Joined: Wed Aug 06, 2008 4:01 pm

Re: Covid 19 help for small limited companies

Postby robbob » Fri Mar 27, 2020 9:36 am

Who is going to be in a position to claim the 80%?
~The accountants who run the payroll ? :)

robbob
Posts: 2914
Joined: Wed Aug 06, 2008 4:01 pm

Re: Covid 19 help for small limited companies

Postby robbob » Fri Mar 27, 2020 9:44 am

The lack of clarificatioin is very unhelpful
latest update is here
https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

D&C
They are either furloughed - doing absolutely no work for the company - or not.
That advise is now outdated - certain volunteer work can be done as clarified by yesterdays update
If your employee does volunteer work or training
A furloughed employee can take part in volunteer work or training, as long as it does not provide services to or generate revenue for, or on behalf of your organisation.

However, if workers are required to for example, complete online training courses whilst they are furloughed, then they must be paid at least the NLW/NMW for the time spent training, even if this is more than the 80% of their wage that will be subsidised.

robbob
Posts: 2914
Joined: Wed Aug 06, 2008 4:01 pm

Re: Covid 19 help for small limited companies

Postby robbob » Fri Mar 27, 2020 9:47 am

https://www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals

Ok i have found wording that suggests its fine for directors to claim their furloughed wages in principle.

Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.

robbob
Posts: 2914
Joined: Wed Aug 06, 2008 4:01 pm

Re: Covid 19 help for small limited companies

Postby robbob » Fri Mar 27, 2020 9:56 am

Looks like whoever wrote the latest release didnt realise there was 29 days in february this year - sigh :(

Incredulum
Posts: 2732
Joined: Thu Dec 03, 2009 5:35 pm

Re: Covid 19 help for small limited companies

Postby Incredulum » Sun Mar 29, 2020 8:21 am


That advice is now outdated - certain volunteer work can be done as clarified by yesterdays update
If your employee does volunteer work or training
A furloughed employee can take part in volunteer work or training, as long as it does not provide services to or generate revenue for, or on behalf of your organisation.
The mind boggles as to what sort of volunteer work might be going on under the auspices of a company that does not involve providing services to, or generating revenue for, a company. Applying for the 80% rebate would surely count as generating revenue...


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