Limited company directors can claim £3,500 Covid payment

The Limited Company Director's Support Scheme has been launched in Northern Ireland, offering a £3,500 grant to limited company directors.

The pandemic has hit businesses across Northern Ireland hard, with some being forced to close and others seeing a drop in sales or loss of productivity. Support schemes have been rolling out throughout the past year to help businesses manage the financial damage caused by Covid-19, but some people have fallen through the cracks in the support systems available.

Companies that operate out of commercial premesis have enjoyed rates relief and support grants, and those forced to close due to lockdown legislation have had direct support payments. The UK's furlough programme has also helped keep employees paid while unable to work, but company directors have had little support.

RELATED: UK furlough scheme extended until March 2021

Some small limited company directors pay themselves a small wage under the PAYE system in order to keep their tax down, and many start-up owners re-invest their earnings in building the company. Those people have been let down by the current support schemes, as they have very little pay on paper and are less likely to operate out of commercial premesis.

The new Limited Company Director's Support Scheme is offering limited company directors in Northern Ireland a grant of £3,500 to help them if their income has dropped due to the pandemic. The scheme is open for applications until February 18th, and directors must meet the following criteria to be eligible for the support:

• Only one application is allowed per person, even if you hold more than one directorship.
• You must be a resident of Northern Ireland.
• You must be a "Person with Significant Control" for a company (25% shareholding or more).
• You must work for the company -- shareholders who don't work for the company are not eligible.
• On March 31st 2020, you must have been being paid remineration (in the form of a PAYE salary and/or dividends) in excess of £4,373 per annum by the company.
• On March 31st 2020, at least 50% of your income must have come from this remineration. Directors of multiple companies must show that remineration from all companies represents at least 50% of your total income.
• Your projected remineration from the company for the 2020/21 financial year must be at least 40% lower than it would have been without coronavirus.
• Your total projected income for 2020/21 must be less than £50,000.

The company you are applying as part of must be based in Northern Ireland and have been trading on 1st March 2020. It also needs to be either actively trading but impacted by reduced demand/income due to the pandemic, or temporarily unable to trade due to the pandemic.

For the full set of guidelines and to apply for the grant, head over to the NI Business Info page detailing the scheme at https://www.nibusinessinfo.co.uk/content/limited-company-directors-support-scheme 

Source: NI Business Info