Director of my own company - do I qualify for the 80 per cent salary?

[cucumber66]

I’m a director of my own limited company and ordinarily earn about 28k per annum. However, since the virus hit business has dried up and I’m facing serious financial difficulties.

From what I gather, I’m also classed as an employee of my company and am paid my monthly salary through the payroll. There are no other directors or employees - it’s just me.

I can’t get hold of my accountant tonight to check whether I’m eligible for the 80% government grant and am feeling anxious as to whether I can claim this. It could be the difference between my business surviving or going under. Does anyone know?

We're in same postion OP. Dh and I run a business together - we use a room at home as a home office. Its an events-type business so freelancers are employed as and when needed. We dont qualify for any help. We have no income for the forseeable future. We have three teenagers and a mortgage and I think we have been totally fucked over. I have always worked and contributed so now I feel totally let down; we've been hung out to dry.

We dont qualify for any help.

@ Thanx4theMmories We don’t know that for certain yet do we? Sorry to hear you are going through the same thing

We’re the same too :(
Praying for help tomorrow’s announcement

What's tomorrow's announcement? I know they are working hard on a package for self-employed. Is something for us expected too? I think people in our position have been remarably quiet - I have LBC on and the SE ring in constantly and make their voices heard. We need to do the same.
and for all in same boat.

I think the reason people aren’t speaking out could be because they’ve assumed that they’ll be covered by the 80% pay, since they’re classed as both directors and employees?

I am the director of a Ltd company and I am the only employee. I work as a locum clinician and am no longer able to work due to clinics being cancelled. Can I claim furloughed pay through my company?

@Happydowninthemouth, From what i've read in a tax forum we can't furlough ourselves if we're the only employee! Don't know how accurate that is, but it was tax 'expert' Richard Murphy's article.

In the replies under the article i stated my position and his reply: 'You do realise that no one is going to have any sympathy with you?'

I don't think anyone cares less about us. If we don't want to be hung out to dry we need to seriously petition the media, such as LBC, and MPs.

Personally i feel like i need to catch the virus, hope it doesn't kill me so i can return to work. It's' crazy, but it's the position these Tories are leaving us in.

No. I asked my accountant the same thing. She said no

One thing that really bugs me... If dividends are not to be counted as wages for us director/employees, then why the hell are they taxed?

ddc70 - good questions, I've wondered the same myself.

In the replies under the article i stated my position and his reply: 'You do realise that no one is going to have any sympathy with you?' I do suspect many people are largely ignorant about the time, commitment, risk and talent it takes to run a business. Instead they view business owners as greedy fat cats exploiting their workforce and sending profits offshore. That's so far from the truth it's ridiculous!

The problem is, while employees are being paid to stay home, if the business owners get nothing, the businesses will have to fold anyway. We can't live on fresh air.

I am the sole director of a Ltd company BECAUSE SOME PUBLIC SERVICES REQUIRE ME TO BE A COMPANY TO WIN CONTRACTS.

Why should I be penalised for it? I earn maybe £32k a year as a lone parent and therefore the only earner in the house. I thought I was going to be okay, but as companies furlough their workers there's no one for me to work with.

I have recently had a couple of months I couldn't work when my DP were ill and my DF died so I'm already down on income. I am not rich!

I woke up feeling quite tearful about everything this morning. When can we expect more clarity - will it be today?

When can we expect more clarity - will it be today?

My sympathies! I'm feeling desperate too. Just broke it to my family that if there's nothing for us in chancellor Sunak's announcement today, then i'm going to have to risk the virus and look for work. What i do isn't essential work, but it can't be done at home.

It all hangs on Sunak's speech this afternoon.

All dividends are taxed the same, whether directors or not. Part of my retirement income is from dividends, it's a whole new can of worms.
It's NI that is supposed to give entitlement to benefits, surely?

Fingers crossed for everybody to get a welfare settlement that enables them to manage in the short term. And for a better safety net when this is all over.

It's NI that is supposed to give entitlement to benefits, surely?

But as a director and only employee i apparently can't take furlough, nor can i take benefits because i'm employed by my company.

It's sickening to see everyone but you helped out. People may think company owners have plenty of money, but many are the only employee, using the company as advised by accountants across the land to use a company to contract themselves out. We make no more than the self employed and sole traders and to be honest i wish i'd never gone that route.

Folding the company now seems the only route left.

Does anyone know when we are expecting it? Teatime briefing?

Yes I know we are still all waiting to hear the detail. Surely though they cannot be so ignorant to realise that without enabling the company director/owner/only employee of the ltd company to be furloughed the company will then fold and close. But the company will still be well placed (hopefully) to resume once the crisis is all over helping to build the economy again. From some of the tax portals I have looked at that suggest the employees can be furloughed but not any director it just doesn't make sense as without any directors there won't be a company in the future to then bring those furloughed employees back to. The problem with things like this is that it is all very complicated and unfortunately our Government cannot deal with complicated matters. Just look at the transportation system in circulating urgent PPE equipment to hospitals etc. If this was in the hands of the logistical/haulage staff that work for major supermarkets etc it would all have been handled in an efficient manner. Again with the procurement of necessary equipment needed. I realise this is all extremely complicated and all being done "on the hoof" so to speak but there are also templates to look at from other countries and nations to copy that are ahead of us here in what they are/or have put in place.

I gave up after the first page as there was so much conjecture and nonsense!

The answer to almost every question is "We don't know". The Chancellor will announce the measures to support the self-employed today. Hopefully, he will include a definition of what that will be for the purposes of this support. I hope it includes directors of limited companies who are effectively self-employed (if not by legal definition).

We are still awaiting the detail on the Job Retention Scheme (furlough).

Until these details are released, the answer to all these questions is likely to be "WE DON'T KNOW!".

.

Not clear yet whether it includes us

What does this all mean?!

I'm pretty sure we're not included but they haven't been absolutely clear.

my husband is one of two who work for their business so accountant said they should qualify for the employed scheme

That doesn't really work if you pay a mix of salary and dividends.

Hopefully now they have come up with a plan for the self employed they can establish the criteria for the 80% furlough scheme.