If you are a company director, you are no doubt aware that there was uncertainty as to whether Directors would qualify for support under the Coronavirus Job Retention Scheme (CJRS). During last night’s announcement by the Chancellor of the Exchequer in relation to support for the Self-Employed, it was confirmed that those who pay themselves a salary and dividend through their own company would be covered for their salary by the CJRS.
In light of the above, we are summarising the key aspects of CJRS in relation to Directors:-
- The scheme is open for at least 3 months from 1 March 2020
- Directors will be able to claim 80% of the salary processed through the payroll under PAYE only under the scheme if furloughed.
- The HMRC will reimburse the 80% of the regular salary plus associated Employers National Insurance and minimum automatic enrolment employer pension contributions.
- Whilst furloughed you cannot undertake any work for the company. This includes services or generating revenue it would appear, although not specifically stated, that fiduciary duties as a director are allowed.
- The payments are subject to tax and national insurance.
- If you would like to make a claim and we complete your payroll please let us know and we will complete this on your behalf.
- There is no claim available for dividends.
- It may be possible to make a claim for Universal credits to top up your income.
If you need any further help please do not hesitate to contact us.