One director says he spends sleepless nights worrying about rent and his family due to getting “no help” from the government.
Directors of limited companies say they have been left to “bleed to death” by Chancellor Rishi Sunak during the pandemic.
Working to keep their businesses alive means that although they are eligible for the UK government’s furlough scheme, it’s often not a realistic option and they are not eligible for the self-employment income support scheme.
They say they’ve been left to “fall through the cracks” during the coronavirus crisis and have called on the chancellor to assess their situation as part of his expected update to the scheme.
There are two million limited companies registered in the UK. Many have more than one director.
They are often small businesses, such as mobile hairdressers, plumbers, electricians and other freelancers working from home. Some 710,000 in the UK are one-person bands, with just one director and no staff.
Directors often take very small salaries and pay themselves dividends if the company makes profit.
But this means it’s hard for the government to assess where dividends are taken as income and where they are being taken as part of a portfolio of investments, and so it’s been hard to design a scheme to accommodate these people.
Mustafa Fuat is the founder of Gosha London Ltd. It produces samples and garments for luxury women’s wear designers.
Orders have completely dried up, and although they have been making hospital scrubs and gowns for the NHS, Mustafa has had to furlough most of his seven staff.
“It’s been sleepless nights, worrying about whether we’re going to get orders,” he explained.
“We’ve had no help from the government, apart from a £10,000 grant from the council, but that’s not going to go far with my rent. Apart from that, I’ve got personal finances at home, I’ve got a mortgage at home, I’ve got a family to keep as well – it’s been really desperate.”
He said he feels angry and let down that his business is being forgotten.
“I feel really sad sometimes. I get some weeks where I come in on my own, and the studio’s empty and the thoughts going round my head, [I’m] not hearing the machines going, the staff laughing, it’s hard to describe.
“What the chancellor’s done is he’s cut us and he’s watching us bleed to death.”.…Read More….