Let’s assume a client has terminated your contract expressly due to coronavirus (you might have difficulties claiming if you’re contract has been terminated due to IR35 for example). Looking for a new contract could be seen as looking to generate commercial revenue, and therefore you would fall outside of this scheme.
If after reading the guidance you are satisfied that you are eligible for the Job Retention Scheme, then you will need to apply to HRMC for your grant. The 80 per cent figure is calculated based on your monthly salary as of 28 February. What was your salary for the month of February? As we all know, it can be tax efficient for limited company contractors to pay themselves a large portion of their earnings as a dividend as opposed to their salary – so this is something to be aware of.
The answer to the question of can a limited company contract worker claim is yes. To find out if it is worth your while, I would calculate the maximum you can claim and then make your decision.
For more support from Eoin, check out MJH Accountancy’s guide to government support for business.