Question to the HM Treasury:

To ask the Chancellor of the Exchequer, for what reason financial assistance was not offered to limited company directors during the covid-19 outbreak.

The Government has not taken a principled stance against support for company owner-managers who pay themselves via dividends. Income from dividends is a return on investment in the company, rather than wages. Under current reporting mechanisms it is not possible for HM Revenue and Customs (HMRC) 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.

This means, unlike announced support schemes which use information HMRC already hold, targeting additional support would require owner-managers to make a claim and submit information that HMRC could not efficiently or consistently verify to ensure payments were made to eligible companies for eligible activity. ?This is about identifying what is operationally feasible, managing technical complexities and fraud risks, and ensuring that other forms of support the Government has already committed to are delivered in a timely way.

The Self-Employment Income Support Scheme continues to be just one element of a comprehensive package of support for individuals and businesses. This package includes Bounce Back loans, tax deferrals, rental support,?increased levels of Universal Credit, mortgage holidays, and other business support grants.