Covid / Gov't support / Single Director of Priv Limited Comp

[DeLorean75]

Hi

If I am the sole Director of a Private Limited Company, in other words I am effectively self employed but have a company shell around me, can anyone speak definitively as to what / which of the Gov't relief schemes are applicable?

Imagine others are in the same bucket.

If this has been asked on the Contractors thread apologies couldn't see it.

Thanks

[Countdown]

You would get 80% of your PAYE earnings (assuming you've furloughed yourself)

There are various other reliefs/grants available for those who have Business Premises.

[CAPP0]

DeLorean75 said:

Hi

sole Director of a Private Limited Company

Countdown said:

You would get 80% of your PAYE earnings

So that's a maximum of £10,000 then (£12,500 * 80%)

[DeLorean75]

Countdown said:

You would get 80% of your PAYE earnings (assuming you've furloughed yourself)

There are various other reliefs/grants available for those who have Business Premises.

I haven't technically furloughed anything just yet

Do you know how this is evidenced eg last year / average last 3 / highest of last 3 etc?

[CzechItOut]

Countdown said:

You would get 80% of your PAYE earnings (assuming you've furloughed yourself)

There are various other reliefs/grants available for those who have Business Premises.

Will he? In order to be furloughed you cannot work. What determines work for a director/sole employee? For example, I need to do my VAT return, is that work and if so am I doing it in my capacity as a director or employee of the company?

[Countdown]

DeLorean75 said:

Countdown said:

You would get 80% of your PAYE earnings (assuming you've furloughed yourself)

There are various other reliefs/grants available for those who have Business Premises.

I haven't technically furloughed anything just yet

Do you know how this is evidenced eg last year / average last 3 / highest of last 3 etc?

My understanding is that it will be based on February payroll submissions. if you're not furloughed then you won't be entitled to it.

[Countdown]

CzechItOut said:

Will he? In order to be furloughed you cannot work. What determines work for a director/sole employee? For example, I need to do my VAT return, is that work and if so am I doing it in my capacity as a director or employee of the company?

i think there will need to be an element of honesty/self policing.

For example (afaics) there's nothing to stop Employers claiming it but keeping it for themselves rather than passing it on to their employees. There doesn't seem to be anything stopping Employers pretending their Employees are furloughed but keeping them at work, thereby getting the 80% of their pay back.

[super7]

Yes..... and how much do you earn? £8k / £12k £16k?

I doubt it would include any dividend....

Is this the financial risk of being a contractor outside or IR35?

[DeLorean75]

Countdown said:

My understanding is that it will be based on February payroll submissions. if you're not furloughed then you won't be entitled to it.

That would be......suboptimal!!!

The reality of these setups is I can't be alone in making ad hoc salary payments from mothership to me as and when the invoices are paid (irregularly in my case)

[Countdown]

DeLorean75 said:

Countdown said:

My understanding is that it will be based on February payroll submissions. if you're not furloughed then you won't be entitled to it.

That would be......suboptimal!!!

The reality of these setups is I can't be alone in making ad hoc salary payments from mothership to me as and when the invoices are paid (irregularly in my case)

Yep. Broadly you would be similar to somebody on a Zero Hours Contract. Those that did loads of hours in Feb will be entitled to more than they would normally, those that did less hours won't get as much. As with any system there are going to be winners and losers.

[DeLorean75]

Countdown said:

Yep. Broadly you would be similar to somebody on a Zero Hours Contract. Those that did loads of hours in Feb will be entitled to more than they would normally, those that did less hours won't get as much. As with any system there are going to be winners and losers.

Thanks Countdown - is this now stabilised do you think or do you anticipate the policy being altered further?

[Countdown]

DeLorean75 said:

Thanks Countdown - is this now stabilised do you think or do you anticipate the policy being altered further?

Your guess is as good as mine tbh.

[super7]

for us PSC's with a LTD company, this is not going to be 80% of what you billed..... it's going to be 80% of what you paid yourself by PAYE.... and I'd be interested to see if a Director could furlough themselves?

[CzechItOut]

Countdown said:

i think there will need to be an element of honesty/self policing.

For example (afaics) there's nothing to stop Employers claiming it but keeping it for themselves rather than passing it on to their employees. There doesn't seem to be anything stopping Employers pretending their Employees are furloughed but keeping them at work, thereby getting the 80% of their pay back.

Which is why I think the government will "pay" companies via an PAYE/NIC holiday and not just a blank cheque.

The problem is this won't help with short term cashflow.

[Countdown]

CzechItOut said:

Countdown said:

i think there will need to be an element of honesty/self policing.

For example (afaics) there's nothing to stop Employers claiming it but keeping it for themselves rather than passing it on to their employees. There doesn't seem to be anything stopping Employers pretending their Employees are furloughed but keeping them at work, thereby getting the 80% of their pay back.

Which is why I think the government will "pay" companies via an PAYE/NIC holiday and not just a blank cheque.

The problem is this won't help with short term cashflow.

Possibly but wouldn't work for some "odd" situations.

Here's one - we've had to "furlough" the Imam for our local Mosque. He's on £15k pa so he generates very little in tax and Ees NI. We get a £3k pa Ers NI rebate so the amount we actually hand over to HMRC each quarter is a few hundred. It's not a massive issue as the Charity has a fair amount of reserves so if they dont pay us we'll just take it on the chin, but its one example of why a PAYE/NIC holiday won't help.

[CzechItOut]

Countdown said:

Possibly but wouldn't work for some "odd" situations.

Here's one - we've had to "furlough" the Imam for our local Mosque. He's on £15k pa so he generates very little in tax and Ees NI. We get a £3k pa Ers NI rebate so the amount we actually hand over to HMRC each quarter is a few hundred. It's not a massive issue as the Charity has a fair amount of reserves so if they dont pay us we'll just take it on the chin, but its one example of why a PAYE/NIC holiday won't help.

Very good point.

[DeLorean75]

Martin Lewis - Mr Money Saving Expert - trying to clarify a lot of this on twiiter / website

For the situ I have described seems to be confirming get support via the employee route having furloughed yourself. Dividends not applicable only PAYE.