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Confused by chancellor statement - Ltd company contractor

2 replies

Surfamamma · 26/03/2020 21:19

Ok so this is such a niche query but I’m so lost in working out which workers might be eligible for government support & there is often some very informed mumsnetters out there that might know or have insights into this.... I’m Director of my own company (posh sounding but essential status for the nature of some contracts I work on), but essentially operate as a sole trader. I’m also a single mum and have had to stop work due to multiple impacts of Covid 19 (home schooling, contracts dried up). Technically I’m ‘employed’ by my own company however I’m not on PAYE (so not eligible for the job retention scheme) as it’s worked out annually by an accountant. I work from home so not eligible for small business grant, and I’m not in the hospitality / retail sector. Although I operate as self employed the income from my company is just money I’ve generated similar to a sole trader.

I pay personal tax, corporation tax and generate VAT and now it seems like I may be the only person in the country ineligible for any form of government support apart from benefits, whilst almost every other single worker in the country employed or self employed is entitled to 80% of their wages. Is this right??

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ShellsAndSunrises · 26/03/2020 21:24

There’s a lot of people who aren’t getting any support... the government hasn’t done a bad job, under the circumstances, but there’s a lot of people in the cracks. Universal Credit is the only option if you’re not eligible for any of the schemes...

My understanding is that you can’t claim today’s relief as you’re a director, but I don’t think you can claim from the employee scheme unless you’re on PAYE, so it’s probably time to check with your accountant, and if that’s correct, get your UC claim in. Do you take any dividends?

Surfamamma · 27/03/2020 08:40

Hi shells and sunrises, thanks for the response, I really didn’t expect anything! I think the level of support is really phenomenal, but I’m devastated and beginning to feel quite bitter that I receive no support simply because of the legal structure I need for my business . UC for me would be around £400-£600 a month when I regularly paid myself a salary of around £1500-£2500. At the end of the year the accountant works out an £8k salary and the rest in dividends in my tax return.

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