one man band directors of ltd company classed as self employed ?covid 19 gov payments

jimcoutts

Hi, 
Any one in a similar position to my self as I suspect their are loads of us in this same boat eagerly awaiting tomorrows news from the Government regarding emergency payments to help small business during this crisis.

My situation is this, I am the sole director of a very small ltd company who employees no one except for my self and of which have my self as PAYE and pays my self the bare minimum of £702 per month and makes the rest up with dividends as is the normal for such small business as my self.
my question is this does any one know if I am going to be classed as self employed for the purposes of any payments from the government as they are announcing their plan tomorrow to help the self employed ?
I have found information on the governments web site regarding universal credits stating that a sole director of a small business such as my self is treated as self employed and calculate the mean average of earnings  from both the PAYE and dividends paid out, i am hoping this is going to be the same as I currently can not live on £560 per month from the 80% of the small amount that i pay myself.

Any info most welcome not only for my self but for the many others how are in the this same position.

emmasnightmare

Im in same boat too buut i only pay myself £320!!!

upshitcreek

It will be interesting to see how this one pans out, as this type of setup has essentially been avoiding (not evading!) Income Tax and NIC by paying smaller salaries and taking the rest in dividends.

Just to be clear, I am not having a go here. Current government legislation allows such behaviour and I have done it myself in the past for short periods of time (although not to such low salary levels) after being made redundant and having to go self-employed in between jobs.

The question is, do you take ALL of the remainder out as dividends every month, or do you leave some funds within the company? If it's the latter, then you could continue paying yourself a salary from the company during this lean period?

dianeleaver

My son has literally just set up a new company in March and has not received any income or paid himself as yet, trying to find out if there is anything he can claim for.....just doesn’t seem to be any advice out there for this situation!

phoenixairservices

Hi, I am the sole director and only employee of a ltd company and has tried to claim furlough. HMRC have rejected the claim as they have said that my PAYE is filed annually and was after the 19th March so I am unable to claim.
Anyone know different 

unforeseen

Nope, missed filing date for CJRS so nothing can be done.