Corona and Limited Company

JBPhysio

I’m a director if my Physiotherapy ltd company and the sole ‘employee’ so I am PAYE for £700 a month and then use dividends for why I need. There seems to be no provision from the government other than offering 80% of salary which essentially means about £550 a month. 

I rent a clinic room within a clinic so I pay a room rental not business rates and as physio clinics are not govt closed they are not getting rates holidays as yet. 

Is this likely to be addressed further do you think or any other advice would be much appreciated.
thankyou. 

Potbellypig

Nothing more on this as of yet, and probably unlikely to be. In hindsight, you should have paid yourself more wages, but we all know why you didn't. I guess £550 is better than nothing though.

unforeseen

Considering you personally pay 7.5% tax on the dividends AND the company pays 19% corporation tax on those same dividends and any other profit in a company then overall the government is probably getting the same or bigger tax payment than taking it as wages.
Taking more wages just moves the tax burden from the company to the person. The difference is minimal or non existent. 

Potbellypig

unforeseen said:

Considering you personally pay 7.5% tax on the dividends AND the company pays 19% corporation tax on those same dividends and any other profit in a company then overall the government is probably getting the same or bigger tax payment than taking it as wages.
Taking more wages just moves the tax burden from the company to the person. The difference is minimal or non existent. 

Ha, let me tell you that you couldn't be more wrong.