Coronavirus - I am a Director of a Ltd Company. What can I claim?

Company directors of Limited companies often get paid through a tax efficient structure which involves allocating a small salary through PAYE - usually around £9,000 and withdrawing funds via a dividend structure.

This allows for most of the funds withdrawn to be paid at a lower tax structure than if withdrawing solely via PAYE.

The Job Retention Scheme allows for employees to be furloughed and claim 80% of their monthly salaries (paid by the government) up to a maximum of £2,500 per employee.

To the extent that directors get paid by their limited companies, directors can make a furlough claim. If directors have paid themselves the minimal amount, the claim will be about £800 per month . The complexity is being furloughed allows for directors to perform only minimal administrative duties.

In the Spring budget in March it was announced that the Job Retention Scheme will be extended until end of September 2021. From July 2021, the government will pay 70% while employers are expected to pay 10%. In August and September 2021, employers will pay 20% while the government will pay 60%

Employers can claim for new starters between 31 October 2020 and 2 March 2021, however they cannot be furloughed until May 2021.

Although the amount claimed by directors under this scheme is quite small (if paying themselves minimal salaries), it is still a contribution to the cash inflow for personal use.