The Limited Company Director’s Support Scheme (LCDSS) opened for applications from 6pm on 21st January 2021. The scheme is operated by Invest NI.
In a revision to the initial announcement, the Executive has announced that the scheme provides a one-off taxable grant of £3,500 to eligible company directors who meet the criteria below.
(This has been revised from the initial announcement which provided for £1,000 and, in the event that of the scheme being undersubscribed, any underspend would be distributed equally between approved applicants in the form of a top up grant, up to a maximum of £3,500.)
Eligibility – Director’s Criteria
To be eligible for the scheme you, the director, must meet all of the following criteria:
· Be resident of Northern Ireland;
· Be 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. However, only one application is allowed per person;
· You must work in the company/companies named 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; and
· Your total projected taxable income for 2020/21 is less than £50k.
Eligibility – Company Criteria
The company (or 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); and
· Intend to continue trading.
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); or
· 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.
How to Apply
There is an online eligibility checker. The link to the checker and application form is here.