We are directors and want to furlough as not a penny coming in.

Jeremy535897

"Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes."

p4s

From what i think. The employees are ok with the 80%wage so they are ok, but if  the employers (directors) do not get anything to help them the businesses will fold leaving all the employees out of work.

patchman

amykirk1996 said:

gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals
For small LTD companies, this is the key line:
"Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.

This is the quote we've been waiting for all day and clears up a lot of confusion for directors of very small companies who only pay themselves a salary. If you are unsure if you pay via the PAYE system log in to your tax account, you can do this via your Government Gateway account and go to the PAYE section. Here you will see your annual salary divided into monthly segments for each month of the tax year. 80% of the monthly amounts is what we will be entitled to.

jimmy_f

GILL1993 said:

Myself and my husband are both directors of our small ltd company, on our tax returns it’s shows we take £8424.00 in wages and the rest is made up in dividends , we are employees of our company so can we take get Coronavirus virus Job Retention salary ? Our accountant says because we  are directors we are not entitled but this seems very unfair and I’m not entirely sure he knows that to be correct, does anyone have anymore information on this please ?

Thanks 

Exactly my query, any advice please.

patchman

jimmy_f said:

GILL1993 said:

Myself and my husband are both directors of our small ltd company, on our tax returns it’s shows we take £8424.00 in wages and the rest is made up in dividends , we are employees of our company so can we take get Coronavirus virus Job Retention salary ? Our accountant says because we  are directors we are not entitled but this seems very unfair and I’m not entirely sure he knows that to be correct, does anyone have anymore information on this please ?

Thanks 

Exactly my query, any advice please.

You will get 80% salary paid via PAYE but not anything paid via dividends

MMushens

i think the assumption that if your profits are more than £50K then you are likely to be earning £200k  is a big let down, so many people are earning  over £50k and could be the only family earner, taking on all the risk employing people, providing jobs, paying various taxes , doing all the things Tories stand for and  and left stranded when in need

HornetSaver

Had been meaning to return to this thread but glad to see others had beat me to it, it's as patchman says.

@MMushens the Government's stance appears to be geared around targetted action for those who they think will contribute to the economic recovery if helped but won't if not, rather than based on a sense of fairness. That's why those who have been laid off rather than furloughed are left with Universal Credit only, and is consistent with them taking the view that leaving more profitable businesses out of this particular scheme is an acceptable risk.

That said, businesses that make profit of more than £50,000 are statistically more likely to benefit from other measures, for instance the ability to defer income tax for six months and VAT for at least three months, small business rate relief or small business grants, they're more likely to have an insurance policy with a clause covering them in the event of Government ordered closure or for the disruption of disease itself, they're more likely to be able to easily get the interruption loan, etc.

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses