Important update from Martin Lewis for self-employed company directors excluded from financial support
MoneySavingExpert.com founder Martin Lewis has warned that a new income support scheme for limited company directors is unlikely to come to fruition.
Reports in The Sun and other national titles over the past few days have said the Treasury is considering a scheme to bailout small business owners who have been excluded from previous coronavirus support. However, Martin's now warned through his social media channels that while such a scheme is still being discussed, on balance of probability it's unlikely to happen.
Martin added that any limited company directors' support scheme would need a degree of self-certification [of income and dividends], which is seen as too much of a fraud risk. To get a scheme over the line would take either a solution to that, or real continued political pressure.
We've embedded Martin's full tweet where he broke the news, and also put a transcript of his full quote below:
'I do get the sense that there is this time round more warmth to proposals'
"As you'll know I have been lobbying for far more help for the possibly up to 3m who've fallen in the gaps.
"Many affected have asked me about the report in The Sun regarding the Federation for Small Biz DISS proposal for providing grants to ltd company directors; most of whom have been left out in the cold when it comes to support schemes.
"I've put feelers out among the powers that be, and I'm afraid to say it seems the article is over-egged. It is unlikely to happen. The self-certification is seen as too much of a fraud risk.
"I do get the sense that there is this time round more warmth to proposals to include those who've previously been excluded & there isn't a principled stance against it (possibly unlike there was for some categories before).
"I certainly think there's a decent chance that 2019/20 tax returns may be assessed in the 4th self-employment grant, and other nuanced changes.
"To manage expectations though. The key stumbling block I'm hearing is on the balance between 'fraud risk, cost to the taxpayer, and helping the individuals missing out'.
"It's going to require someone coming up with technical solutions which mean govt won't get a National Audit Office report highlighting too much fraud opportunity. Let's hope."
If you're a self-employed company director, our Coronavirus Self-Employed & Small Limited Company Help has details of what help is available to you.
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