What support is available to workers who provide their services through their own limited company?

Last updated: 25 Nov 2020

Unfortunately, these people are specifically excluded from the scheme to aid self-employed workers, if they “pay themselves a salary and dividends through their own company.”

If they were operating a PAYE system on or before 19 March this year, and were themselves on the payroll on that date, they may be able to put themselves ‘on furlough’ and apply to the Coronavirus Job Retention Scheme for a grant equivalent to 80% of their average earnings.

In most other circumstances there is little government assistance at this time. Prospect is still lobbying the Treasury and politicians for a support package for workers in this situation.

Meanwhile, you may be eligible for Universal Credit, which is not generous, and involves a means-test, but is still worth applying for.

Your business may be eligible to apply to the Coronavirus Business Interruption Loan Scheme, run by the British Business Bank, which most self-employed, and personal service company (PSC) people, working in Bectu sectors, should qualify for on the primary criteria.

However, you will then face credit checks by the commercial lenders participating, who have been delegated to make all decisions about loans. There will also be a need to pass a business viability test, and you may not want to resort to credit that is extended only as an unsecured personal loan, despite the 12-month interest-free period.

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