Help for director/shareholders of limited companies

The Self Employment Support Scheme does not include directors of limited companies. If the company is not trading and has been ‘mothballed’ during lockdown, directors are able to furlough themselves under the Job Retention Scheme, for the PAYE element of their earnings only, if they only carry out activities which would ‘reasonably be judged necessary’ for the purpose of fulfilling statutory duties.

Written on April 7, 2020 by Xeinadin Group

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However, this would not fully assist owner/directors of limited companies who may also receive their income by way of dividends.

There is still also the support offered through the benefits system.

Both Universal Credit standard allowance and Working Tax Credit basic elements will be increased by £1,000 a year for the next 12 months. To ensure that the Self Employed benefit the minimum income floor (MIF) has also been removed. The MIF is a measure that assumes that Self Employed workers earn a certain level of income. By eliminating this, it opens more benefits to people who are Self Employed “at a rate equivalent to Statutory Sick Pay for employees” according to the Chancellor.

There has also been an increase in support for renters with an increase in Local Housing Allowance that will cover at least 30% of market rents and also the previously announced three-month mortgage holiday.

In summary it still feels like Company Directors are not been supported as well as others in the economy, but as we have seen this week, all that could change and we are hoping that further announcements regarding other forms of support may be made in due course.

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