Self-employed & Coronavirus

[sir baconface]

Not sure this is correct, directors are not classed as employed for tax purposes, rather they are Office Holders who just happen to pay tax on their salaries PAYE. Neither scheme provides for people in that position as I understand it

My understanding - which could be wrong - is that owner directors of limited companies ARE classed as employees for tax purposes.

 

[Barcon]

No, did i miss something? sorry, must have got the wrong end of a post

Crouchinho and I are in Toronto mate.
He was telling me about a government pay out we both might be entitled to.

 

[flook]

I imagine the Government’s logic is that you paid yourself mainly in dividends in order to escape paying NIC. Hence only the salary element will be protected.

I have no problem with that, but the salary element should be protected like every one elses

 

[kaz7]

Has anyone looked at their business insurance? Anything there?

 

[flook]

My understanding - which could be wrong - is that owner directors of limited companies ARE classed as employees for tax purposes.

Directors are classed as office holders for tax purposes, even though in reality they PAYE their salaries and pay NI as employees

 

[sir baconface]

Directors are classed as office holders for tax purposes, even though in reality they PAYE their salaries and pay NI as employees

What’s the difference in practice, mate?

 

[sir baconface]

Has anyone looked at their business insurance? Anything there?

An exclusion clause?

 

[kaz7]

An exclusion clause?

I was hoping something that might help

 

[Coatigan]

Crouchinho and I are in Toronto mate.
He was telling me about a government pay out we both might be entitled to.

I see, thanks. Missed that bit, sorry.

 

[flook]

What’s the difference in practice, mate?

I don't know for sure that there is any, there's conflicting advice/opinion flying around at the moment, @Cheesy said earlier ICAEW had stated that directors were not eligible for the employee support package, whereas a post on the IPSE forum said the ICAEW had said completely the opposite, but it's all conjecture. The only thing I'm sure of is that the self employed support package is not available to ltd co directors. Hopefully this will become clearer when the treasury publish the details of the schemes