Support for a Single Director Limited Company

ISASwitcher

Hi All
I am e freelance worker operating as a single director limited company. Technically speaking, I'm an employee of my own company. There are no other employees. In common with so many others, I have seen my income reduce to about 10% of pre-crisis levels, so I have a simple question - what financial support is available for people like me?  Would it be ESA or Universal Credit, or should I see if I can get the 80% wage support announced by the Chancellor last week?
Any guidance gratefully received.
Andy

unforeseen

You are also a director so will still be running your company, therefore no 80%.

Jeremy535897

This is a common theme on threads here. The short answer is that we don't know yet. The longer answer is that the coronavirus job retention scheme applies only to employees who are laid off by their employer and do no work whatsoever for that employer. Issues specific to sole director/employee limited companies include:
a) what was your pay for February? Did you get a regular wage? Did you take dividends?
b) as sole director you cannot leave the company with no officers, so how can you do nothing at all for the company? Even you doing the process of entering the coronavirus job retention scheme and administering it is surely working for your employer? 

neilmcl

Technically, you may pay yourself PAYE but you're not in fact an employee. You have no contract of employment, you cannot be terminated and you cannot be furloughed.

calcotti

If you are looking to benefits look at Universal Credit. ESA is only available for people who are sick not to people who are experiencing a drop in income. See https://www.citizensadvice.org.uk/benefits/universal-credit/
There are benefit calculators you can use to assess entitlement https://www.gov.uk/benefits-calculators

ISASwitcher

Thanks for those who replied. Your input was helpful. Basically, I'm entitled to stuff all, so now pinning hopes on the Chancellor to offer support to freelancers. Stay safe and well, all.

hilaryc_2

Thanks for asking the question I needed an answer to and very disappointing to hear that, SO FAR, we haven't been thought about. Let's hope we start to come into the equation soon.

andy8442

I employ my wife as the secretary and she actually does all the office and admin work. Could she furlough me? or is the issue more about leaving the company without a director?

mobilejo

Directors CAN furlough themselves for 80% of their PAYE salary, they simply have to stop working for the company (however you can comply with statutory duties like filing annual returns).

You won't be resigning as director, so the company will not be 'directorless'. You just won't be doing your normal work day to day.

silvercar

Martin Lewis contacted hmrc about this and then tweeted updated advice.
You can furlough if you have no work and still complete your legal obligations as a director. So if you can't do the work of the company as an employee, you can claim 80% of salary and still fulfil director obligations.
The problem is that a lot of directors have a small PAYE and large dividends. There is no help with dividends. 

swinstan

So, on accountants advice, after years and years of self employment, set up this year as ltd.co, with me and (non business) partner as directors. She does all the admin. Heavy construction industry has locked down, so I have no work at all. Can't see Martin's tweet but from prior comments above, I can claim 80% as an employee of my own company. Anyone know where I can get confirmation of this and advice about how to do it. Thanks everyone. And stay safe.