Director of limited company

rcoleman15

Hi can anyone please advise. 
My husband is a director of a limited company and pays us both a small wage. We are aware we can only get 80% of this small wage as dividend aren't included. Majority of my earnings come from my self employed business but I only started in June 2019 so cant get any help as I havent yet sent in a self assessment. Would we be able to get universal credit to top us up as the 80% isnt going to cover much for us. I'm confused at what we would put in as our earnings to apply for universal credit. We are currently earning 0. However hopefully by the end of april we will be the 80% of our salaries. 
Thanks 

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Dazed_and_C0nfused

How do you think you can both get 80%?

If you are both furloughed who will make the claim for the 80%?

There is new information about the job retention scheme here,

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

rcoleman15

Well surely if we are both employees of the company and we both get wages from it we can get both 80%?

Dazed_and_C0nfused

Who is going to make the claim for you?

rcoleman15

My husband? He is the director

Jeremy535897

And there's the problem. To qualify for payments under the coronavirus job retention scheme, the employee must do no work at all for the company, which would presumably stop the employee doing the administration of the company's coronavirus job retention scheme. We just don't know how this resolves. It needs urgent clarification.

nickologjam

Directors are officers of the company who are not necessarily paid. They may also be employees of the company if paid. 

Surely administration can be carried out in your capacity as officer of the company (not an employee) as it doesn't constitute paid work.

This would be the same as preparing the yearly return etc. which is your responsibility as an officer and takes no account of whether you are paid or not.

Jeremy535897

The coronavirus job retention scheme guidance to employees includes:
You’ll still be paid at least 80% of your wages by your employer and pay taxes from your income. You cannot undertake work for your employer while on furlough. We expect the scheme to be up and running by the end of April.
Many small companies have one director and one employee, and they are the same person. The Chancellor said however that such companies could use the coronavirus job retention scheme in respect of salary, not dividends. I don't know how these two contradictory statements reconcile.

nickologjam

I would like to think that they take a pragmatic view on this given that these measures are there to help businesses survive.

Arguably whilst the same person, the roles of Employee and Director are completely separate and it depends which hat you are wearing. 

I will certainly be furloughing myself and the OH and we'll see what the rules say afterwards. We are both Directors and our business has been decimated overnight so it is currently the only route forwards.

calcotti

Jeremy535897 said:

Many small companies have one director and one employee, and they are the same person. The Chancellor said however that such companies could use the coronavirus job retention scheme in respect of salary, not dividends. I don't know how these two contradictory statements reconcile.

I'm with you on that one - ideally it needs a slight relaxation of the no work rule for these specific circumstances.

Pmd20

Hello, can anyone offer any advice on my situation.  I am a director of a small ltd company that has been trading since 2015. In March 2019 our funding was reduced and as a result I took temporary work with the NHS between Aug 19 and Dec 19. I returned full time to the business in January 2020. Since January I have been drawing a salary from the business. I can apply for the 80% job retention for my employees but can anyone advise what financial help is available to cover my own income losses?  Any suggestions are welcome. Thanks