Debates between Lord Agnew of Oulton and Baroness Bull during the 2019 Parliament

Covid-19: Self-employed

Debate between Lord Agnew of Oulton and Baroness Bull
Thursday 23rd April 2020

(3 years, 11 months ago)

Lords Chamber
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Lord Agnew of Oulton Portrait Lord Agnew of Oulton
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My Lords, the Government are making sure that people and businesses have access to the support they need as quickly as possible. We have tried to design measures that can be made operational quickly and effectively. Lenders have increased the number of loans they are approving every day and staff are working to process applications as quickly as possible. Over 12,000 CBILS loans have been made to businesses so far, meaning benefits of some £2 billion in finance and the rate of approvals is accelerating.

Baroness Bull Portrait Baroness Bull (CB)
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My Lords, large numbers of freelance and self-employed workers operate as personal service companies. Indeed, employers demand this of them. This means that they receive the majority of their remuneration as dividends not salary, which disbars them from the SEISS. Will the Government consider accepting proof of dividend incomes from dividend certificates and self-assessment tax returns so that freelancers can fairly claim compensation on income earned through dividends from their own personal service companies?

Lord Agnew of Oulton Portrait Lord Agnew of Oulton
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My Lords, the policy for the proprietor of a business to take a dividend is a personal one. It is done largely to mitigate employers’ national insurance, so I do not believe that it is right for the Government to look at that as a form of income. A dividend is defined as the surplus of a business after all its expenses have been paid, profits retained and taxes paid. While we will keep an open mind, I do not think this is something we will be dealing with urgently.