Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether he plans to support people who earn the majority of their income through dividends as directors of limited companies, and who are ineligible for the Coronavirus Job Retention Scheme or the Self-Employed Income Support Scheme.

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 Coronavirus Job Retention Scheme or the Self-Employment Income Support Scheme may be able to access 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/