Originally Posted by: JohnW

Chris, you wrote > If you are a safety consultant and director of your own limited company read the letter....< What about sole traders, not limited? John

John, I assume that you did not read the letter.  The campaign is specifically targetted at small limited companies. At present, the Government has income support for the sole-trader in terms of wage support based on an average income over 3-months from the previous year or £2,500 per month, whichever is the lower amount, to support them during the Covid-19 period.  Most small limited company directors pay themselves minimum wage and, assuming there is profit at the end of a period (say per month) then top up their income with a dividend.  The plea is merely to request that government take both pittance income and dividends into account to lend a level of financial support which is equitable with the equivalent sole trader.  Currently, if I were a sole trader, I would be better off.

Your first post is to seek iosh support for a very specific group of UK consultants in lobbying the government.

There are those of us in the membership on PAYE also suffering and struggling with the aid being offered by the government many now being firmly on the misery side of Micawbers principle.

Each of us chose our income arrangements to be of best personal benefit at the time (pre-Covid).

Every decision in life also has consequences, trouble is until time confronts us with those consequences......

I'm in this bracket, owner of Ltd company. Pay minimum wage and take a dividend. People moan that we don't pay tax on dividends, It used to be the case but we now pay tax on them. Not at the same rate as the pay element but then we don't have sick pay, holiday pay etc etc.

Originally Posted by: JohnW

Thanks Chris. I am an OAP sole-trader. 2018-2019 was a lean year, low profit and as I have state and company pensions I expect I won’t qualify for any financial assistance.

Sir, you have my truest sympathies.  Stay safe...

Isn't there something within the government support packages along the lines that if a company has a loan/grant then the shareholders should not be taking a dividend!   Can't recall the fine detail, but in some ways that has a ring of 'right' about it, otherwise the shareholders gain from both options.    Perhaps it's the sceptic in me that wonders if some Ltd companies draw dividends to the extent of the best financial position and leave the remaining funds in the company until the next financial year (that's what I've done in a previous life and quite legitimately as well I many add) so they do not exceed this years tax thresholds.  Perhaps there are some Ltd enterprises who might now be in a position to draw down more dividends as a survival strategy and hang the additional tax.   I fully accept there are some ltd Cos who tax all the funds in each year and leave nothing else in the account.