UHY Ross Brooke Chartered Accountants

Treasury to consider helping SMEs that pay dividends

We’re delighted that the Treasury is urgently looking at ways to help business owners who pay themselves via dividend income, according to their own Twitter account this morning where they say they are ‘looking at proposals’.

At the moment these smaller businesses, often one-person limited companies, feel as though they have been forgotten.

We have been in contact with the Treasury to share our research with SMEs conducted in recent weeks and have suggested a practical solution that would be in line with measures put in place for the employed and larger businesses.

We suggest the government looks at extending the Self-Employment Income Support Scheme (SEISS) to include salary and dividend income from owner-managed companies, as well as self-employment income, but to exclude any furlough grants received.

This measure would bring support for those affected in line with the support being provided to unincorporated businesses and employees.

This would be fair and equitable, and in fact would improve on SEISS by eliminating double counting where individuals have a mixture of employment and self-employment

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