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<p>Company directors who are also owner managers can earn a salary and receive shareholder
dividends from their company as part of their total remuneration package. Company
directors who pay themselves a salary through PAYE are eligible for the Coronavirus
Job Retention Scheme (CJRS), but neither the CJRS nor the Self-Employment Income Support
Scheme (SEISS) cover dividends or other investment income.</p><p> </p><p>The SEISS
relies on the information provided through tax returns to determine eligibility for
the scheme and to calculate the grant amount. These returns are also used to protect
the scheme from abuse by organised crime groups and fraudulent operators; when an
individual applies to the SEISS, HMRC can cross-check the person’s SEISS application
against their tax returns.</p><p> </p><p>It is not possible under current reporting
mechanisms for HMRC to distinguish between dividends paid in lieu of employment income
and those paid as returns on investment in the company. The Government has considered
proposals under which company directors would be allowed to self-certify how much
of their dividends are in lieu of salary, and then claim SEISS based on that self-certification.
However, it is clear that this would open up the scheme to an unacceptable risk of
opportunistic fraud and criminal activity.</p><p> </p><p>Those not eligible for the
CJRS and SEISS may still be eligible for other elements of the support available.
The Universal Credit standard allowance has been temporarily increased for 2020-21
and the Minimum Income Floor relaxed for the duration of the crisis, so that where
self-employed claimants' earnings have fallen significantly, their Universal Credit
award will have increased to reflect their lower earnings. In addition to this, they
may also have access to other elements of the package, including Bounce Back loans,
tax deferrals, rental support, mortgage holidays, self-isolation support payments
and other business support grants.</p>
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