Coronavirus support for people who normally work through their own limited company

Although it has been confirmed you can furlough your PAYE pay, under the Coronavirus Jobs Retention Scheme (CJRS), no official scheme has been announced for directors of limited companies, even if they’re just one (wo)man bands, and we do not believe one is coming, though many are lobbying for it.

It has however been confirmed by the Treasury that limited company directors, even if they’re the only employee, can furlough their PAYE income – i.e. get 80% of salary up to £2,500/month. This is not likely to be a huge help as most earn more via dividends (and there’s no help there), but it is something, and you can combine it with universal credit.

Unfortunately, unlike the self-employment scheme, if you do this, technically you cannot then work for the firm, but you can continue to perform your statutory director’s obligations, e.g. official legal filings.

It is important to note that directors of a limited company are not classed as self-employed and are therefore not eligible for the Self-Employed Income Support Scheme.