The IoD has today (Friday 17th April) written to all MPs to call for action to support directors of small companies who have been left out of current coronavirus support measures.
The directors’ organisation described the Coronavirus Job Retention Scheme as ‘not adequate’ for company directors, because it ‘fails to recognise’ how they may administer their remuneration, and ‘provides inadequate scope’ for directors to fulfill their statutory duties, potentially preventing directors from carrying out basic actions like paying suppliers.
The IoD called for restrictions on furloughed directors’ activities to be re-examined ‘as a matter of priority’, and to ensure directors can claim 80% of their monthly income including company dividends, up to the £2,500 per month cap, subject to tax, to put them on par with support available for employees and the self-employed.
Highlighting other gaps in Government support, the business group set out measures to help small firms and start-ups. These included raising the Government backing on some loans to 100%, boosting investor reliefs, and extending coronavirus support grants to firms without premises, such as those that operate in co-working spaces.
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