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)
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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.
@ 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.
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
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.
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.
@ 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.