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Single director company support

Relief from government

Didn't find your answer?

Just wondering how people are dealing with single director companies for support in the current situation. 

I know technically they are employees of the company but the basic £719 director salary is not a true reflection of their income and will only provide them with £575.20 a month under the furlong arrangements.

I can't find any information about this and hoping the chancellor may include them in his announcement later, but just wondering what other peoples thoughts are on it as obviously their dividends make up the majority of their income

Replies (16)

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By paul.benny
26th Mar 2020 08:19

Didn't you try looking at any of questions already asked?

Variations on this have been asked dozens of times over the last week - and the answer is still that the details of the scheme haven't yet been published so we don't know a definitive answer.

Thanks (6)
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By Tanya Bridges-Mann
26th Mar 2020 08:31

Omg there is no need to be so rude, I am new to this site!!!!
Yes I did try searching for questions but nothing came up, maybe it's because I am on my mobile so will try on the desktop.
Was also just interested in other people's opinions and how they are dealing with it!!!!

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Replying to Tanya Bridges-Mann:
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By memyself-eye
26th Mar 2020 08:42

Like the man in the Aviva advert when asked about his door lock security, said:

"I don't know - nobody does"

You will just have to be patient.

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Replying to memyself-eye:
By Duggimon
26th Mar 2020 09:03

And the solution to this, as with the guy on the Aviva advert, is to google it.

My door lock does conform to safety standard BS3621, it took me all of two minutes to find that out.

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Replying to Duggimon:
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By Tax Dragon
26th Mar 2020 09:17

Googling door locks. Oh the ways people fill their time whilst social distancing.

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Replying to Tax Dragon:
By Duggimon
26th Mar 2020 09:20

I did it when applying for house insurance! It's a standard question, though every form I've filled in that's asked about it also explained what it meant, I wasn't ever interrogated under harsh light by an aggressively angry lady who expected me to have memorised the British Safety Standards.

Which made all the time I'd spent doing so largely wasted.

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Replying to Duggimon:
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By Tax Dragon
26th Mar 2020 10:27

What I want to know (though admittedly not enough to be bothered to find out) is what difference the answer to the question makes. [open edit Three possibilities: none whatsoever; close edit] it affects the premium; it invalidates your insurance if you answered "yes" when you should have answered "no".

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Replying to Tanya Bridges-Mann:
Oaklea
By Chris.Mann
26th Mar 2020 09:07

Good morning Tanya and a warm welcome to the forum. I must add, we're not related in any way!

Yes, there's a plethora of information, out there and its seemingly updated daily.
One area, which is definitely updated daily is here https://www.icaew.com/insights/coronavirus/uk-practical-business-advice-...

As I understand the situation, HMRC are being tasked with the design and build of a new web portal. They have little time, in which to achieve that task.

If you belong to a professional organisation, I'd be surprised if they weren't issuing useful guides etc. However, there are many links to the various daily updates. The acas website https://www.acas.org.uk/

Certainly, ICPA, a professional organisation, to which I belong, is working tirelessly, to keep members up to speed.

One thing many members of the forum, would do well to bear in mind. Henceforth, nothing in our world, will ever be the same again. The time for those who have high opinions of themselves, is over. On the other side of this crisis, let's hope we all come out, much kinder. I'm certainly hoping that I will. There's many occasions, when I've not been proud of my attitude and day by day, I'm really trying to improve.

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Replying to Chris.Mann:
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By mail.taxperfect.co.uk
26th Mar 2020 18:29

Hello Tanya,

I too welcome you to the forum. Word of warning, almost every question here gets faced with a few rude responses, from 'brave' people hiding behind the internet veil of anonymity. The trick is to pick out the very useful comments amongst these, of which there usually are some. Chris's response is that one here.

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Replying to mail.taxperfect.co.uk:
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By Cheshire
26th Mar 2020 18:44

To be fair to Paul, he is in normal circumstance one of the most patient and helpful of Awebs members. So his response, being so largely out of character suggests he is having somewhat of a bad day.

New or not, on a mobile or not, the OP could have spent a little while longer getting a feel for the site before posing a question and would have easily stumbled upon the hundreds of times this question has been asked. But she isnt the only one and I think Sift should be stepping up to deal with this issue.

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Replying to Cheshire:
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By Tanya Bridges-Mann
26th Mar 2020 19:19

I did spend time looking but couldn't find an answer and maybe that is down to lack of experience of the site, but I am under huge pressure from my clients asking questions and want to give them the best possible advice so I reached out and asked for advice!
People don't have to read it or comment if it is inconvenient to them just because they have seen lots of other similar posts!!
#bekind????

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By Sanjeev Nanda
26th Mar 2020 09:13

This whole non-clarification is a big disaster. There are people who're claiming to know everything, yet they can be proven wrong on a moment's notice. I hope some explanation will come forward soon today.

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By turchyna582
26th Mar 2020 10:35

From my personal perspective it was their own choice to use the minimum salary/wage plus dividends route to achieve optimum net income.
Just like the self-employed who engage in 'creative accounting' to reduce their 'taxable profits' - it has now time to receive the support based upon their HMRC submissions ONLY - and accept that they cannot expect to only enjoy the upside of their own decisions and strategies.
The Sole Director gets his/her dividends as a shareholder/investor - the result of a personal choice - other 'investors' nationwide are not being compensated for their loss or reduction in dividends!

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Replying to turchyna582:
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By AWeb72
26th Mar 2020 12:38

It is tax planning, not tax avoidance

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Replying to AWeb72:
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By Tanya Bridges-Mann
26th Mar 2020 12:43

I agree, plus the dividends are their own income really, not dividend income received from something they have invested in?

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By c.szpak
26th Mar 2020 13:31

Is there an argument that a one man band has two roles? Firstly he is a Director, therefore an office holder and he does this for no/little pay. Secondly, he is an employee who carries out day to day activities to generate revenues but given the current situation cannot work. Thus as the employee he can qualify to be furloughed? Thoughts anybody?

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