Any Cabbers work via a limited company? What's the Covid-deal?

[ZoyzaSorris]

I'm pretty sure there are fellow self-employed Cabbers that work as a director of a limited company rather than as sole traders - my wife and I both have this arrangement (people in my industry pretty much have to do it this way to get work) and will be unable to work for a couple of months at least.

So I was wondering - has anyone managed to work out what our solution is here? My current conclusion is that we treat ourselves as furloughed employees and apply for the 80% of salary thing, as I understand it we aren't covered by the self-employed rules.

Am I right? Would be good to sort this out!

[paruses]

I think that this set up has been explicitly ruled out of any aid package that will be provided. Also, as you're the director of your company and a company has to have director than you are able to work so cannot be classed as furloughed - I have no idea if that's going to be enforced / is true but I read it yesterday.

Sorry I don't have better or more helpful news - I am in the same boat .

[phantom_power]

If you pay yourself a salary you can claim 80% of that I think through the PAYE scheme. Anything else like dividends aren't included.

[petercussing]

As someone who's running a covid business support line at the mo the above is right, directors who just get a dividend are pretty much unsupported unfortuntely, but as above you can get 80%of you paye pay if you get that.

Even with all this support there are a ton of people who have fallen through the cracks and a lot of businesses that are just going to go bust in the next few weeks.

Oh and you aren't consider with self employed workers

[gib]

Pretty sure the assumption in the OP is correct, based on that's what my plasterer neighbour is planning to do.

[steveh]

CONFIRMED self-employed limited company directors CAN be furloughed as employees on their PAYE element, even if theyre sole employee.

Technically they can't then work for the firm, but can continue to perform their statutory obligations as directors eg official legal filings etc

https://twitter.com/MartinSLewis/status/1243619949605728257

[ZoyzaSorris]

Thanks for the info guys, well we weren't expecting more than a little chunk of our PAYE salary anyway, so this looks like reassuring news...

[paruses]

Thanks for that petercussing / steveh. Can take a few items off ebay now.

[greencalx]

That's good to know. My wife is freelance, employed with precisely this arrangement so that the business and family finances are separated for protection in the event of insolvency. She's got work at the moment, but if this dries up then good to know she can self-furlough.

[GMTV]

IR35 SOON

[Non Stop Dancer]

We've been thrown to the wolves, because reasons.

[beanheadmcginty]

To be fair, considering the vast amounts of tax and national insurance that can be avoided with this arrangement it's only fair that there's no government support.

[Non Stop Dancer]

Yeah, lots of people have that ill informed take.

[Pinball]

https://www.ipse.co.uk/ipse-news/ipse-blog/ltd-co-contractors-covid-support-selfemployed.html