Thank you for the clarification, and I get the valid point that you made.PaulJS wrote: ↑Wed Mar 25, 2020 8:09 pm
Yes, technically you are absolutely correct. However, in reality, many directors are the only shareholder and are 'employed ' by a company over which they have sole ownership and control. They are therefore employed by themselves in a roundabout way - I think it is semantics.
The point is that in order to work as a contractor you have to set yourself up as a limited company for which you work. This company only has the resources and revenue behind it that you, as the sole employee, generate. Granted, you probably qualify for the 80% salary grant but, given how the vast majority of contractors structure their income ( on the advice of their accountant) this won't help much!
I guess the point I was really making was that there is a danger that directors who take nominal salaries and top up with dividends will be hoisted by their own tax efficient petard!
It will be interesting to see what solution the government comes up with.
Today’s announcement of the new package for self employed people, in my opinion seems very fair in such difficult circumstances.