I've been turning over the Chancellor's announcement in my mind and it gets worse the more I think about it.
HMRC have now confirmed that Directors drawing a small salary and dividends will not be included in the relief for self employed scheme:
Therefore, any director who draws remuneration via salary or dividends is limited to 80% of what in most cases is going to be a salary of £12,500. So far, quite bad.
However, while the Chancellor's speech explicitly stated that self-employed individuals can continue working and still qualify for this relief, the opposite rule applies for anyone who attempts to furlough themselves as a Director. In order to qualify for the employee furlough relief, you cannot perform any work for the company with the aim of generating a profit. Therefore in order to qualify for even the 80% of their £12,500 salary, clients are obligated to completely shut their companies down. If they were to continue work while claiming the furlough rate, they risk HMRC making the accusation at a later date that they have claimed the furlough payment fraudulently.
There are going to be a lot of very worried and upset clients tomorrow.