The government has recently released further details around the Coronavirus Job Retention Scheme aiming to support directors and shareholders of companies, as well as further schemes to help self-employed individuals during this time.
What support is available for me as someone who is self-employed?
The Self-employed Income Support Scheme launched by the government aims to help self-employed workers combat loss of income due to the coronavirus pandemic.
To qualify for the scheme your self-employed income cannot be more than £50K, or your self-employed income be less than half of your taxable income (either for 2018/19 or on average over the last three tax years). HMRC will contact individuals who are eligible for support, aiming to making a payment sometime in June. The grants will be decided on your profits over the last three years, and worth up to 80% of your profits, capped at £2,500 a month, and will also be taxable
As a director/shareholder, am I eligible to be furloughed?
There has now been clarification that directors are eligible to be furloughed under the Coronavirus Job Retention Scheme, although further clarity is expected. As with all staff members on furlough, to qualify for the scheme directors must stop working for the company. Statutory duties can be carried out however, provided they do no more than would reasonably be judged necessary, no services or revenue-generating work is permitted, even with reduced hours or productivity.
The scheme is unlikely to be as generous as the Self-employment Income Support Scheme as it only relates to salary, and does not include dividends.
How can Tozers help?