Many of our sole Directors have been asking us weather or not the Coronavirus Job Retention Scheme will apply to them as sole Directors or owner managed Businesses, on the basis that they were in the position to close down their active limited Company because of Coronavirus. Our answer is – At this time, we don’t know – as we don’t have further legislative guidance. But as soon as we do know, we will update you. In the meantime, we would have thought:
- A contract of employment is required, as many Directors of Companies are not treated as “Employees” but as “Office holders”
- If this was the case, it would only be for PAYE pay rolled earnings up to £2,500 per month (not dividends etc) and subject to the existing rules.