Call Now: 028 9263 4135
e: info@exchangeaccountants.com

Limited Company Director’s Support Scheme

By January 15, 2021 News

On 14th January 2021 the Minister for the Economy announced a new COVID-19 support scheme designed to provide financial support to company directors who have been adversely impacted by the pandemic. Below we summarise the main elements of this scheme (The Limited Company Director’s Support Scheme or LCDSS) as well as detail the criteria you must meet to benefit from the scheme.

Online applications are set to open at 6pm on Thursday 21st January 2021

The LCDSS will provide an initial one-off taxable grant of £1,000 to eligible company directors who meet the criteria outlined below. While applications are invited from individuals who hold more than one directorship, only one application is allowed per person.

To be eligible for the scheme you (the Director) must meet all of the following criteria:

  • You are a resident of Northern Ireland.
  • You are a Person with Significant Control (PSC) for the company/companies* listed in your application (i.e. you hold more than 25% of shares in the company).*You will be asked to list all companies in which you hold more than a 25% share as part of your application.
  • You must work in the company/companies named in your application.
  • At 31 March 2020 (prior to COVID-19) at least 50% of your income came from your director’s remuneration (salary) and dividends.
    If you are a director of more than one company then your remuneration (salary) and dividends from all companies must represent at least 50% of your total income.
  • Your projected remuneration (salary) and dividends from the company for the 2020/21 financial year is 40% lower than it would have been in the absence of coronavirus. If applicable, this should include any furloughed income received.
  • Your total projected taxable income for 2020/21 is less than £50k.

The company/companies in which you are an eligible director must:

  • Be currently trading but impacted by reduced demand due to coronavirus, or previously trading but temporarily unable to due to coronavirus.
  • Be based and operating in Northern Ireland.
  • Have been trading at 1 March 2020 (i.e. prior to the COVID-19 pandemic).
  • Intend to continue trading.

Please note: Whilst you will be asked to list all the companies in which you hold more than 25% of shares, you are applying as an individual, and only one application is allowed per person.

For full details on eligibility and to view the rules on who may not apply: Click Here

How to apply

You will be able to check your eligibility for the Limited Company Director’s Support Scheme through an online checker and apply online from 6pm on Thursday 21 January 2021.

You will find all this information from the 21st January here

As always if you require any further assistance please do not hesitate to contact our team on info@exchangeaccountants.com