Can contractors working through limited companies claim Government payments ? Can contractors working through limited companies claim Government payments ?
Page 1 of 2 12 LastLast
Posts 1 to 10 of 11
  1. #1

    Should post faster

    dangerouswhensober is a permanent contractor


    Join Date
    Jul 2014
    Posts
    126

    Default Can contractors working through limited companies claim Government payments ?

    In 'The Times' today (Friday 27th March 2020) there is (very) conflicting evidence on the subject of whether contractors working through their own limited companies can claim support payments from the Government.

    Below are links to screen-shots of two articles from The Times today.

    The first is a summary of the support measures for self-employed people announced by the Chancellor yesterday. This includes the statement:
    "... anyone who has set themselves up as a company and pays themselves through a dividend will not be eligible."

    The second screen-shot is from a 'case study' - on the SAME PAGE (page 7) - involving a self-employed musician. This includes the statement:
    "Ms Hewitson has a limited company and takes her income in dividends. With profits of under £50,000 a year, she will be able to claim relief."

    So which is correct ?

    I am a contractor working through my own limited company. As recommended by accountants, I pay myself a mixture of salary and dividends - I know many thousands of other contractors also do this. Further, my total yearly income falls below the £50,000 limit (mainly because I was "out of contract" for parts of the last financial year).

    So can I claim the Government relief for the self employed ?

    Imgur: The magic of the Internet

    Imgur: The magic of the Internet
    "If You Tolerate This Your Children Will Be Next ..."

  2. #2

    Contractor Among Contractors

    Scoobos has more data than eek

    Scoobos's Avatar
    Join Date
    Mar 2012
    Location
    Wherever I lay my hat
    Posts
    1,387

    Default

    Quote Originally Posted by dangerouswhensober View Post
    In 'The Times' today (Friday 27th March 2020) there is (very) conflicting evidence on the subject of whether contractors working through their own limited companies can claim support payments from the Government.

    Below are links to screen-shots of two articles from The Times today.

    The first is a summary of the support measures for self-employed people announced by the Chancellor yesterday. This includes the statement:
    "... anyone who has set themselves up as a company and pays themselves through a dividend will not be eligible."

    The second screen-shot is from a 'case study' - on the SAME PAGE (page 7) - involving a self-employed musician. This includes the statement:
    "Ms Hewitson has a limited company and takes her income in dividends. With profits of under £50,000 a year, she will be able to claim relief."

    So which is correct ?

    I am a contractor working through my own limited company. As recommended by accountants, I pay myself a mixture of salary and dividends - I know many thousands of other contractors also do this. Further, my total yearly income falls below the £50,000 limit (mainly because I was "out of contract" for parts of the last financial year).

    So can I claim the Government relief for the self employed ?

    Imgur: The magic of the Internet

    Imgur: The magic of the Internet
    My interpretation is that you can claim 80% of your salary - not dividends etc. The question remains whether you actually should. We've all got different circumstances obviously and some contractors may genuinely need assistance.

    Claim for wage costs through the Coronavirus Job Retention Scheme - GOV.UK

  3. #3

    My post count is Majestic

    northernladuk has reached the peak. Play again?

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    43,315

    Default

    Surprises me how little ******* effort people are willing to put in to try understand what is going on when their income is on the line.

    Posting in General and asking the same bloody question that's being discussed endlessly in both the business and accounting sections is just poor.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #4

    Contractor Among Contractors

    Scoobos has more data than eek

    Scoobos's Avatar
    Join Date
    Mar 2012
    Location
    Wherever I lay my hat
    Posts
    1,387

    Default

    Still as blunt as ever I see NLUK.. I've missed you darling.

  5. #5

    My post count is Majestic

    northernladuk has reached the peak. Play again?

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    43,315

    Default

    Quote Originally Posted by Scoobos View Post
    Still as blunt as ever I see NLUK.. I've missed you darling.
    And you! Hope the family is safe and well and you are being waited on hand and foot!

    'CUK forum personality of 2011 - Winner - Yes really!!!!

  6. #6

    Should post faster

    genius is too good to be a permie


    Join Date
    Apr 2016
    Posts
    112

    Default

    Quote Originally Posted by Scoobos View Post
    Still as blunt as ever I see NLUK.. I've missed you darling.
    I've never seen the guy actually answer a question on here, his role seems to be to complain at every single post while contributing nothing.

  7. #7

    Contractor Among Contractors

    Scoobos has more data than eek

    Scoobos's Avatar
    Join Date
    Mar 2012
    Location
    Wherever I lay my hat
    Posts
    1,387

    Default

    Don't worry, you'll grow to love him. (he does have a point though, and this is General , where we are supposed to be evil to one another)

  8. #8

    Grand Chief Guinea Pig

    Pogle 's job has never been outsourced

    Pogle's Avatar
    Join Date
    Oct 2008
    Location
    Cat sitting for Schrödinger
    Posts
    4,791

    Default

    Quote Originally Posted by genius View Post
    I've never seen the guy actually answer a question on here, his role seems to be to complain at every single post while contributing nothing.
    Thats why we all love him
    I'm sorry, but I'll make no apologies for this

    Pogle is awarded +5 Xeno Geek Points.
    CUK University Challenge Champions 2010
    CUK University Challenge Champions 2012

  9. #9

    My post count is Majestic

    northernladuk has reached the peak. Play again?

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    43,315

    Default

    Quote Originally Posted by genius View Post
    I've never seen the guy actually answer a question on here, his role seems to be to complain at every single post while contributing nothing.
    Need to open your eyes then. Failing that try searching the forums.
    Last edited by northernladuk; 27th March 2020 at 14:32.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  10. #10

    Nervous Newbie

    HMRCWOT has no reputation


    Join Date
    Mar 2020
    Posts
    9

    Default

    Quote Originally Posted by northernladuk View Post
    Surprises me how little ******* effort people are willing to put in to try understand what is going on when their income is on the line.

    Posting in General and asking the same bloody question that's being discussed endlessly in both the business and accounting sections is just poor.
    I'm waiting for my accountant to tell me what to do

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •