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<p>In the development of the COVID-19 support schemes, HMRC have taken into consideration
what is operationally feasible, while managing technical complexities and fraud risks,
and ensuring that other schemes the Government has committed to are delivered in a
timely way.</p><p> </p><p>Income from dividends is a return on investment in the company,
rather than wages. It is not possible for HMRC 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.</p><p>
</p><p>Payment through dividends would require owner-managers to make a claim and
submit information that HMRC could not manageably verify to ensure payments are made
to eligible companies for eligible activity.</p><p> </p><p>Company directors who are
paid via dividends may be eligible for various elements of the support available,
including the Coronavirus Job Retention Scheme (in respect of their salary but not
their dividends), Bounce Back loans, tax deferrals, rental support, increased levels
of Universal Credit, mortgage holidays and other business support grants.</p>
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