FSB calls for government to give company directors more support

The Federation of Small Businesses (FSB) has urged the government to supply company directors with additional support during the coronavirus (COVID-19) pandemic.

29 May 2020

The Federation of Small Businesses (FSB) has urged the government to supply company directors with additional support during the coronavirus (COVID-19) pandemic.

The FSB has written a letter to Small Business Minister Paul Scully, highlighting that self-employed company directors, who often pay themselves a salary supplemented with company dividends, do not have access to the government's Self-employment Income Support Scheme (SEISS). The SEISS permits eligible individuals to claim 80% of earnings, up to a maximum of £2,500 per month.

The business group stated that directors of limited companies can furlough themselves using the Coronavirus Job Retention Scheme (CJRS), but they are only allowed to claim for loss of Pay as You Earn (PAYE) income and not dividends.

To be able to claim this, directors who pay themselves annually would have needed to submit the information to HMRC by 19 March. However, many directors were unaware that this would be necessary.

'The business support measures currently in place help the vast majority, but they don't help everyone,' said Mike Cherry, National Chairman of the FSB.

'Business owners who have contributed for years through corporation and dividend tax are now suffering purely because of the way they pay themselves. They need help, and they need it fast.'

Quick Links

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2020 Blue Spire Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Contact Chichester Office

Tel: +44 (0)1243 781234
Fax: +44 (0)1243 791770
Email: chichester@bluespiregroup.com


Contact Brighton Office

Tel: +44 (0)1273 739533
Fax: +44 (0)1273 732844
Email: brighton@bluespiregroup.com

Chichester Address
Cawley Priory, South Pallant, Chichester, West Sussex PO19 1SY

Brighton Address
5th Floor Intergen House, 65-67 Western Road, Hove, East Sussex BN3 2JQ

Blue Spire Limited is Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales C004152645. Professional indemnity insurance is provided by Royal & Sun Alliance Insurance Plc 9th Floor, One Plantation Place, 30 Fenchurch Street, London, EC3M 3BD and its territorial coverage is worldwide (excluding United States/Canada).
Blue Spire Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. FSA register https://www.fca.org.uk/register reference 566257. This guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at customers based in the UK