Russell Geary of RDG Accounting Ltd talks about single director companies.
The forgotten group during the pandemic has been the single director companies who under normal circumstances would pay themselves a small salary and then take a dividend depending on profits.
The furlough and Covid-19 business support grant hasn’t really helped most clients of this type so we have been advising clients to explore other methods of financial support such as:
- Secondary rates support
- Bounce back loans
- Deferral of taxes
- Other grants.
We have also been mindful to explore with clients the future debt burden likely to hit in 2021 and beyond when taxes and loans may become payable. It’s a difficult conversation but we must address with the client the viability of their business post Covid-19.
It’s also important to explore with the client their thoughts and motivations behind decisions they are trying to make now so that we are advising them with all the facts.