Excluded - final throw of the dice

[GhostofTarbera]

Updated link


302 Moved

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[AtW]

He is going to help them in Spring with higher CGT, divi tax etc...

[ladymuck]

You could at least copy/paste some of it for those of us who aren't subscribers (the google method isn't working, I wonder if they've done something to fix that?)

[_V_]

Yeah what is the point of posting stuff behind a paywall, with no comment or small snippet to give context?

[DaveB]

UK entrepreneurs who have missed out on coronavirus financial support packages because they are directors of limited companies have mounted a last-ditch attempt to persuade the chancellor to help them ahead of Wednesday’s spending review.

A consortium of professional bodies has urged Rishi Sunak to consider proposals for a “directors income support scheme” that would mirror the self-employment income support scheme (SEISS) under which sole traders can claim up to £2,500 per month.

This has excluded directors of limited companies who pay themselves via dividends, even though this is the standard accounting structure used by around 2m small UK limited companies, ranging from those with sole owner directors to micro businesses, which collectively employ 7.5m people.

Summary, proposal is to allow payment of grants up to 80% of trading profit capped at £2,500 per month to small businesses, not individuals, that could then be used to pay dividends to directors.

It's being put forward by the FSB, ACCA, the Forgotten Limited campaign group with support from tax specialist Seeley Harris.

[GhostofTarbera]

That’s odd I don’t subscribe but can read article


302 Moved


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[jamesbrown]

Some search engines will provide you with access if you don’t subscribe, bing for example.

I hope and expect he will ignore them.

[AtW]

"Under the proposals, directors who are a “person of significant control” would be able to claim 80 per cent of average trading profits before their dividends were taken — figures that can be evidenced via HMRC records, and verified by an accountant. Capped at £2,500 per month, the taxable grants would be paid into the company, not to individuals, which the FSB said would minimise the risk of fraud. Property and investment companies would not be eligible."

Like that going to happen

In a fair world Govt support would be provided in form of "student" like debt to be re-paid by the beneficiary, thus dumping down demand for support to those who otherwise might not need it and avoiding having to tax those who not getting support in the first place.

But this is not a fair world.

[GhostofTarbera]

Some search engines will provide you with access if you don’t subscribe, bing for example.

I hope and expect he will ignore them.

Wonder why it’s paid to business account, as a grant and no need to payback, 40% will go back immediately in tax


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[jamesbrown]

"Under the proposals, directors who are a “person of significant control” would be able to claim 80 per cent of average trading profits before their dividends were taken — figures that can be evidenced via HMRC records, and verified by an accountant. Capped at £2,500 per month, the taxable grants would be paid into the company, not to individuals, which the FSB said would minimise the risk of fraud. Property and investment companies would not be eligible."

Like that going to happen

In a fair world Govt support would be provided in form of "student" like debt to be re-paid by the beneficiary, thus dumping down demand for support to those who otherwise might not need it and avoiding having to tax those who not getting support in the first place.

But this is not a fair world.

Completely agree, but it would dampen demand substantially, so it’s pro-cyclical and would damage the recovery. Among the bad options, it is still the best one. When this is audited, eventually, the amount of waste and fraud will be unbelievable.