A common question from directors of limited companies and personal service companies is ‘what help is there for me?’
Well at present there has been no official scheme from the government for directors of limited companies. However, if you are a director and you are an employee of your own limited company, you can furlough yourself under the Coronavirus Job Retention Scheme.
You are entitled to reclaim 80% of your salary from the government which is processed through PAYE. HMRC are working on setting up a process to make a claim for the 80%, it is expected to be available by the end of April 2020.
Once HMRC have received your claim and you are eligible for the grant, they will pay it via BACS payment to a UK bank account.
You are only entitled to this scheme if you are not working for your limited company and you are not generating any revenue. Also, you would need to have been on the payroll on 28th February 2020.
If you are a director and you only take your income as dividends, unfortunately you would not be eligible for this scheme. You may be entitled to the below support –
- Coronavirus Business Interruption Loan Scheme
- If you have a business property – Business Grant
- Universal Credit
If you are a director, you are currently not working and the Furloughed status applies to you. If you haven’t already informed us, please email email@example.com.