Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will bring forward a dedicated coronavirus income support scheme for limited company directors that fall outside his Department's definitions of what constitutes self-employed, an employed individual or an employer.

The Government has acknowledged that it has not been possible to support everyone as they might want.

The practical issues that prevented the Government from being able to include company owner-managers in the original Self-Employment Income Support Scheme (SEISS), namely the inability of HM Revenue and Customs (HMRC) to verify the source of their dividend income without introducing unacceptable levels of fraud risk, still remain. This issue also remains when considering an alternative scheme specifically for limited company directors.

As with the previous SEISS grants, it is not possible for 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.

Company directors who pay themselves a salary through a PAYE scheme are able to apply for CJRS support, subject to meeting the eligibility criteria of the scheme. In addition, company directors may be eligible for other elements of the package of financial support available. This includes Bounce Back loans, tax deferrals, rental support, mortgage holidays, increased levels of Universal Credit, self-isolation support payments and other business support grants.