The Government has now announced details of the support they will give to employees and the self-employed adversely affected by the coronavirus. More details can be found by following these links:
https://employment.howardkennedy.com/post/102g34w/coronavirus-job-retention-scheme-guidance-issued
https://entrepreneurs.howardkennedy.com/post/102g367/coronavirus-grants-for-the-self-employed
The Government has also provided a webpage showing the different areas in which support is being given to business:
https://www.businesssupport.gov.uk/coronavirus-business-support/
One significant group, however, remains at risk - those who have been operating their businesses through a personal service companies (PSC).
As the sole employee of their company, they are unlikely to be able to put themselves on furlough to claim under the job protection scheme. Even if they were able to do so, it is customary for PSCs to pay minimal salaries with most of the earnings being extracted by way of dividend - 80% of a minimal amount is even more minimal.
On the other hand, people working through a PSC are not self-employed and so cannot claim the grant announced on 26 March.
Given the Government's hostility to PSCs, it is questionable as to whether they will step in to help.
What is also unclear is whether the job retention scheme will apply to workers who have been taken onto public sector payroll, and paid under PAYE, under the IR35 off-payroll working rules. If not, this will be another example of the off-payroll working rules leaving those operating through personal service companies, but caught under PAYE, in the worst of all worlds.
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