COVID-19 Support for Director-led businesses
The Job Retention Scheme has been warmly welcomed by many, including accountants who are working hard to support businesses applying for these schemes. However, many of the businesses are one-man companies with one director performing both administrative duties and income-generating activities.
Can a director of a company claim this grant?
Under this scheme director of their own company who is paid through PAYE may be eligible to get support using the Job Retention Scheme.
Directors can continue to run their business in terms of performing their statutory duties as officeholders, but they must be furloughed from other day-to-day activities for raising any revenue for the company. In other words, you can not provide services to your clients and raise invoices. The claim will be only for 80% of their salary processed through PAYE.
Dividends are excluded from this scheme.
To avoid fraud, there are expected to cross-check between the applications for grants against PAYE records for each employer.
The information provided in this article is not intended to constitute legal, accountancy or financial advice. You should take independent legal, accountancy or financial advice before relying on the information in this article or before decisions are made or before you embark on any course of action.
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