Can contractors working through limited companies claim Government payments ?

[dangerouswhensober]

In 'The Times' today (Friday 27th March 2020) there is (very) conflicting evidence on the subject of whether contractors working through their own limited companies can claim support payments from the Government.

Below are links to screen-shots of two articles from The Times today.

The first is a summary of the support measures for self-employed people announced by the Chancellor yesterday. This includes the statement:
"... anyone who has set themselves up as a company and pays themselves through a dividend will not be eligible."

The second screen-shot is from a 'case study' - on the SAME PAGE (page 7) - involving a self-employed musician. This includes the statement:
"Ms Hewitson has a limited company and takes her income in dividends. With profits of under £50,000 a year, she will be able to claim relief."

So which is correct ?

I am a contractor working through my own limited company. As recommended by accountants, I pay myself a mixture of salary and dividends - I know many thousands of other contractors also do this. Further, my total yearly income falls below the £50,000 limit (mainly because I was "out of contract" for parts of the last financial year).

So can I claim the Government relief for the self employed ?

Imgur: The magic of the Internet

Imgur: The magic of the Internet

[Scoobos]

In 'The Times' today (Friday 27th March 2020) there is (very) conflicting evidence on the subject of whether contractors working through their own limited companies can claim support payments from the Government.

Below are links to screen-shots of two articles from The Times today.

The first is a summary of the support measures for self-employed people announced by the Chancellor yesterday. This includes the statement:
"... anyone who has set themselves up as a company and pays themselves through a dividend will not be eligible."

The second screen-shot is from a 'case study' - on the SAME PAGE (page 7) - involving a self-employed musician. This includes the statement:
"Ms Hewitson has a limited company and takes her income in dividends. With profits of under £50,000 a year, she will be able to claim relief."

So which is correct ?

I am a contractor working through my own limited company. As recommended by accountants, I pay myself a mixture of salary and dividends - I know many thousands of other contractors also do this. Further, my total yearly income falls below the £50,000 limit (mainly because I was "out of contract" for parts of the last financial year).

So can I claim the Government relief for the self employed ?

Imgur: The magic of the Internet

Imgur: The magic of the Internet

My interpretation is that you can claim 80% of your salary - not dividends etc. The question remains whether you actually should. We've all got different circumstances obviously and some contractors may genuinely need assistance.

Claim for wage costs through the Coronavirus Job Retention Scheme - GOV.UK

[northernladuk]

Surprises me how little ******* effort people are willing to put in to try understand what is going on when their income is on the line.

Posting in General and asking the same bloody question that's being discussed endlessly in both the business and accounting sections is just poor.

[Scoobos]

Still as blunt as ever I see NLUK.. I've missed you darling.

[northernladuk]

Still as blunt as ever I see NLUK.. I've missed you darling.

And you! Hope the family is safe and well and you are being waited on hand and foot!

[genius]

Still as blunt as ever I see NLUK.. I've missed you darling.

I've never seen the guy actually answer a question on here, his role seems to be to complain at every single post while contributing nothing.

[Scoobos]

Don't worry, you'll grow to love him. (he does have a point though, and this is General , where we are supposed to be evil to one another)

[Pogle]

I've never seen the guy actually answer a question on here, his role seems to be to complain at every single post while contributing nothing.

Thats why we all love him

[northernladuk]

I've never seen the guy actually answer a question on here, his role seems to be to complain at every single post while contributing nothing.

Need to open your eyes then. Failing that try searching the forums.

[HMRCWOT]

Surprises me how little ******* effort people are willing to put in to try understand what is going on when their income is on the line.

Posting in General and asking the same bloody question that's being discussed endlessly in both the business and accounting sections is just poor.

I'm waiting for my accountant to tell me what to do