Share this content
11

CJRS £1k bonus for directors

Has the government clarified whether or not directors will be eligible for the £1k CJRS bonus?

Didn't find your answer?

This was discussed at length in this thread in July, with the conclusion being that the guidance issued at that point did not indicate that directors would be exculded. However, given that the bonus is unlikely to inlufence the decision to retain a director, some people felt the government may state in the future that directors are excluded. 

Is anyone aware whether this point has now been clarified?

Kind regards

Chris

Replies (11)

Please login or register to join the discussion.

avatar
By SXGuy
17th Sep 2020 12:55

No. But i personally can't see why they would be excluded. If they were furloughed, which they could have been, and they are also an employer, which they are. Then it stands to reason they would also benefit from it.

Thanks (2)
Replying to SXGuy:
avatar
By chrisacc1985
17th Sep 2020 13:01

All of the guidance does specifically refer to "employees" and strictly a director is not an employee, and the government did need to clarify that directors were included previously. You would expect the same treatment would apply, but given that it isn't an incentive to retain the director, I think it is possible that they won't include director's this time.

Thanks (0)
Replying to chrisacc1985:
By SteveHa
17th Sep 2020 13:18

That depends on whether the director has a contract. Some do, you know.

Thanks (1)
avatar
By fawltybasil2575
17th Sep 2020 13:53

@ chrisacc1985 (OP).

Directors are specifically included in the scheme: see the last paragraph of the GOV.UK guidance here:-

https://www.gov.uk/government/publications/job-retention-bonus/job-reten...

“Employers can claim the Job Retention Bonus for all employees who meet the above criteria, including office holders, company directors and agency workers, including those employed by umbrella companies. The above criteria must be met regardless of the frequency of the employee’s pay periods, their hours worked and rate of pay”.

[Note the reference to “office holders” and “company directors”].

Basil.

Thanks (9)
Replying to fawltybasil2575:
avatar
By chrisacc1985
17th Sep 2020 15:53

Thank you Basil. I had looked for something like this, but was unable to find anything.

Well done for not mentioning the war.

Best regards

Chris

Thanks (1)
Replying to fawltybasil2575:
ALISK
By atleastisoundknowledgable...
17th Sep 2020 16:05

Excellent as ever - well done Basil.

Thanks (0)
avatar
By frankfx
17th Sep 2020 16:55

Well I'll mention the war and the rat.

Rat -a- tat tat !

Thanks (0)
avatar
By why always me
21st Sep 2020 09:38

Given small limited companies have been shafted on the furlough (80% of £8k wage) v sole trader 80% profit, it would be shocking if they were excluded. Cannot argue tax savings v sole trader with 7.5% on dividend now

Thanks (0)
avatar
By psimonparsons
21st Sep 2020 09:58

So yes for directors. However, there are also other requirements to consider in relation to pay in each of the qualifying periods and being above the required thresholds.

So quarterly or annual payments may not work as a qualification.

Thanks (0)
avatar
By john hextall
21st Sep 2020 11:00

If they were employees before March 2020 earning more than a certain amount (£520 per month?) and were furloughed for some period between March and October and remain employees next year, they should get the £1000. That's what they said.

Thanks (0)
avatar
By fawltybasil2575
21st Sep 2020 11:40

@ john hextall (your 11.00 post).

Forgive me, but you have misinterpreted the requirements. I believe that the words in (1) of the GOV.UK guidance (as per the link in my last post) succinctly set out the conditions:-

“The Job Retention Bonus is a one-off payment to employers of £1,000 for every employee who they previously claimed for under the scheme, and who remains continuously employed through to 31 January 2021. Eligible employees must earn at least £520 a month on average between the 1 November 2020 and 31 January 2021”.

One should (in accordance with (2) of the GOV.UK guidance) strictly speaking place the word “validly” before “claimed” in the above conditions.

One should note the “average” requirement for the £1560 of earnings for the period 1 November 2020 to 31 January 2021, hence in principle £1, £1 and £1558 for the three months accords with that principle, albeit in practice one would normally attribute £520 to each of the three months.

Basil.

Thanks (0)
Share this content

Related posts