Sole Director / Coronavirus

amykirk1996

Hello, I am the sole director of a (consultancy) limited company and am therefore, in effect, self employed in all but name.

I am paid a mix of salary (PAYE) and dividends.

Would my company be included in this Government 80% system top up?

If not, can you please advise help for sole directors as work has completely fallen off a cliff in the past 2-3 weeks.

Thank you in advance.
Amy

justwhat

This one will be interesting. cause unless they put something in place. i can see some people getting a pay rise lol 

neilmcl

justwhat said:

This one will be interesting. cause unless they put something in place. i can see some people getting a pay rise lol 

How do you work that out?

Dazed_and_C0nfused

Maybe this is going to mean some directors wish they had paid themselves a higher wage and smaller dividend?

neilmcl

amykirk1996 said:

Hello, I am the sole director of a (consultancy) limited company and am therefore, in effect, self employed in all but name.

I am paid a mix of salary (PAYE) and dividends.

Would my company be included in this Government 80% system top up?

If not, can you please advise help for sole directors as work has completely fallen off a cliff in the past 2-3 weeks.

Thank you in advance.
Amy

I'm in the same boat like a lot of freelancers who run their own Ltds. I suspect, as usual, we'll end up falling through the net again and end up having to survive through our own resources.

justwhat

director Dave Originally employed / PAYE his wife,sister and daughter. 
Correct me if i am wrong but all the  LTD has to do now is pay them 20% wage and .gov will pay the rest.  Dave is not going to pay them off even if the LTD is running at a loss.
And surely Dave , if PAYE the .gov is going to pay him, unless they put something in place. (unless like mortgages the count him as SE)

calcotti

amykirk1996 said:

If not, can you please advise help for sole directors as work has completely fallen off a cliff in the past 2-3 weeks. Amy

Universal Credit https://www.citizensadvice.org.uk/benefits/universal-credit/

Jeremy535897

All UK businesses are eligible for assistance with wages for furloughed employees. I think that for employers who have one employee (the sole director) there are three difficulties:
a) whether there is an employment at all (in the probable absence of a contract of employment), or just the office of director
b) what the rate of pay is, if it fluctuates and/or is supplemented by dividends
c) how can you actually be furloughed if you are still carrying out duties (for example dealing with a potential claim for wages reimbursement for yourself). To quote the Government from its statement to employees who are furloughed:
"To qualify for this scheme, you should not undertake work for them (the employer) while you are furloughed."
Pressure is building for some help for the self employed who are just as affected as businesses in leisure and hospitality, but don't qualify for any of the reliefs for these industries, and do not qualify for the small business grant as they don't occupy property that is free of rates due to SBBR or RRR. I think any such help should view sole director companies in the same light, but we shall have to see.

neilmcl

Agree with the above. As a sole director of your Ltd you may well be "employed" as such as you are paid via PAYE but you can't be furloughed, nor can you be sacked as you're still required to carry out the duties of administering your company.

Potbellypig

I was searching for some answers to this too as I'm in the same position. Consultancy company, sole director, only employee and pay myself a wage and a dividend. Expecting the bad news soon and was wondering how or if people like me can even be helped financially during this time. I'm sure all will be revealed soon but I'm not feeling particularly confident in truth. 

Jeremy535897

I understand the Chancellor is to make a statement about help for the self-employed very soon, so see what he says. I would hope it would address sole director companies too.