Limited Company Director's Support Scheme
NOTE: This scheme closed to applications at 6pm on Thursday 4 March 2021.
The Minister for the Economy has announced details of the Limited Company Director’s Support Scheme, designed to provide financial support to company directors who have personally been adversely impacted by COVID-19.
The scheme is administered by Invest Northern Ireland on behalf of the Department for the Economy.
What is available?
The Limited Company Director’s Support Scheme (LCDSS) will provide an initial one-off taxable grant of £3,500 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.
Who is eligible?
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, you must have been paid remuneration (salary via PAYE) or dividends which exceeds £4,375 per annum, from the company/companies listed 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.
Who cannot apply?
- Individuals who are eligible for the Newly Self-Employed Support Scheme.
- Directors of investment companies or property companies, unless you hold other qualifying directorships.
- Directors of companies that only started trading after 1 March 2020.
- Directors who finance the business but do not work in it.
- PSCs where the PSC is a trust or limited company, i.e. only individuals who are PSCs can apply.
- The applicant has failed to comply with a COVID-19 prohibition notice, served by the Police Service of Northern Ireland (PSNI), under regulation 7 of The Health Protection (Coronavirus, Restrictions) Regulations (Northern Ireland) 2020(b).
- The grant to be paid from the Limited Company Director’s Support Scheme will result in the company that has paid your PAYE Salary, exceeding its applicable European Union ‘de minimis’ ceiling. Find more detail on state aid rules.
What you will need to apply
If you are eligible to apply, you will need the following information to complete the online application form:
- A clear and legible scanned, photograph or screenshot copy of correspondence from HMRC, which clearly shows your name and address, as well as your Unique Tax Payer Reference (UTR), if you have one.
- If you received a PAYE salary, please provide all of the following:
- A clear and legible scanned, photograph or screenshot copy of your payslip for either February, March or April 2020.
- A clear and legible scanned, photograph, or screenshot copy of your personal bank statement which clearly shows receipt of your net pay.
- A clear and legible scanned, photograph, or screenshot copy of your 2019/20 P60.
- If your PAYE salary was less than £4,375, or you did not receive a PAYE salary and received dividends from the company/companies, you will need to provide all of the following:
- A clear and legible scanned, photograph, or screenshot copy of your SA302 following submission of your 2019/20 self-assessment tax return.
- A clear and legible scanned, photograph, or screenshot copy of your personal bank statement which clearly shows receipt of the dividend(s) from the company.
- Confirmation, on company letterhead, of the amount and date the dividend(s) was issued during the 2019/20 tax year.
- A clear and legible scanned, photograph, or screenshot copy of your bank statement which clearly shows the account name, number and sort code; and date of issue of the statement (dated within the last 3 months). This must be the same account to which the LCDSS grant payment will be made.
- A form of photographic ID as proof of identity, such as a clear and legible scanned, photograph, or screenshot copy of a valid passport or a current (full or provisional) driving licence photocard. All Northern Ireland full driving licences with an expiry date between 1 February and 31 December 2020 will be treated as valid for a further eleven months. This does not apply to provisional driving licences.
Note: The maximum file size of each attached document is 3MB.
If you can't find the answer to your question, make an enquiry online or contact the helpline on 0800 952 4422. Lines are open Monday to Friday from 9am to 4:30pm.
The Department of Finance manages the Localised Restrictions Support Scheme. Email all queries on this scheme to Localised.Restrictions@finance-ni.gov.uk.
Operation of the Limited Company Director's Support Scheme by Council and Constituency
Between 21 January 2021 and the closure of the LCDSS scheme on 4 March 2021, 6,178 applications were submitted under LCDSS. As of 8 April 2021, 1,057 applicants have been paid to a value of £3.7 million.
You can find more information about the operation of LCDSS, including applications received, their current application stage, alongside data by District Council and Parliamentary Constituency area. This data is updated weekly - download the latest statistics on the Limited Company Director's Support Scheme (PDF, 552K).
First published 21 January 2021