Self-employment Income Support Scheme: Directors

(asked on 29th April 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will review his decision to count neither profit invested back into the development of self-employed businesses nor paid as dividends to directors of small limited companies as income for the purposes of the Coronavirus Self Employed Income Support Scheme.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 11th May 2020

The Self-Employment Income Support Scheme (SEISS) is intended to support individuals who rely primarily on their trading profits from self-employment as their main source of income, and whose income has?been adversely affected by COVID-19.

Income from dividends is a return on investment in the company, rather than wages, and is not eligible for support. Under current reporting mechanisms it is not possible for HM Revenue and Customs to distinguish between dividends derived from an individual’s own company and dividends from other sources, and between dividends in lieu of employment income and as returns from other corporate activity. Expanding the scope would require HMRC to collect and verify new information. This would take longer to deliver and put at risk the other schemes which the Government is committed to delivering as quickly as possible.

Individuals who are not eligible for the SEISS may have access to other support Government is providing, including the Bounce Back Loans Scheme for small businesses, the Coronavirus Business Interruption Loan Scheme, and the deferral of tax payments. More information about the full range of business support measures is available at:?www.businesssupport.gov.uk/coronavirus-business-support/.

Reticulating Splines