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<p>HMRC are not able to distinguish between dividends derived from an individual’s
own company and dividends from other sources, so do not have a clear mechanism through
which to support dividend income from an individual’s own company, without also supporting
dividend income from other investments. Dividends are taxed at a low rate and are
paid in respect of the individual’s role as a shareholder in their own business. It
would not be right therefore for the Government to reimburse shareholders’ dividend
income.</p><p> </p><p>However, individuals paying themselves a salary through a PAYE
scheme, including salaried company directors, are able to apply for the Coronavirus
Job Retention Scheme (CJRS), subject to their abiding by the requirements of the scheme.
Those who pay tax on their trading profits through Income Tax Self-Assessment may
instead be eligible for the Self-Employed Income Support Scheme (SEISS). The SEISS
will provide grants to those who are self-employed, or members of partnerships, worth
80% of their trading profits/partnership trading profits, up to a maximum of £2,500
per month. SEISS is available to those who generate majority of their income from
self-employment and who earn less than £50k.</p><p> </p><p>Small business owners may
also benefit from a range of other support measures including:</p><ul><li>A 12-month
business rates holiday for all eligible retail, leisure and hospitality businesses
in England</li><li>Small business grant funding of £10,000 for all business in receipt
of small business rate relief or rural rate relief;</li><li>The Coronavirus Business
Interruption Loan Scheme (CBILS)</li><li>The Bounce Back Loan Scheme (BBL) for SMEs</li><li>VAT
deferral for up to 12 months</li><li>Through the Time To Pay scheme, businesses in
financial distress, and with outstanding tax liabilities, can receive support with
their tax affairs</li><li>Protection for commercial leaseholders against automatic
forfeiture for non-payment until June 30, 2020</li></ul><p> </p><p>The Business Support
website provides further information about how businesses can access the support that
has been made available, who is eligible, when the schemes open and how to apply -
<a href="https://www.businesssupport.gov.uk/coronavirus-business-support" target="_blank">https://www.businesssupport.gov.uk/coronavirus-business-support</a>.</p>
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