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April 1st 2020

Coronavirus Job Retention Scheme: are directors eligible?

Whilst there is no support scheme specifically for limited company directors, it has now been confirmed that directors of limited companies CAN indeed qualify for the CJRS, provided they meet the eligibility requirements. Accountants are fielding many enquiries about this at the moment!

Under the Scheme, directors can furlough themselves - even if they are the sole employee.

Whilst they cannot perform any duties of employment whilst furloughed, they can continue to perform their statutory obligations as directors - that would include making official filings to Companies House (e.g. confirmation statements, statutory accounts e.t.c.).

The Scheme does NOT cover dividend income - leaving hundreds of thousands of director shareholders who take the majority of their income as dividends (rather than salary) at a comparative disadvantage compared to employees earning an equivalent salary.

Read our detailed explanation of the CJRS here.

Contact us today for assistance.

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