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Self-employed: Coronavirus

Question for Treasury

UIN 41410, tabled on 29 April 2020

To ask the Chancellor of the Exchequer, what plans he has to provide support for people who are self-employed and who are paid primarily through dividends.

Answered on

4 May 2020

Those who pay themselves a salary through their own company may be eligible to claim for 80% of usual monthly wages, up to £2,500 a month, through the Coronavirus Job Retention Scheme (CJRS). The CJRS is available to employers, including personal service companies, and individuals paying themselves a salary through a PAYE scheme are eligible.

The Government’s priority has been to support as many people as it possibly can, and as quickly as possible. 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 and any such proposal would need to be considered against the other schemes which the Government is committed to delivering as quickly as possible.

Those who are not eligible for the Coronavirus Job Retention Scheme may be able to access other support Government is providing, including the Coronavirus Business Interruption Loan Scheme, the Bounce Back Loans Scheme for small businesses, 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/

Answered by

Treasury
Named day
Named day questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.