The wages of 21,500 jobs in the Isle of Wight have been supported by the Government since the launch of the Coronavirus Job Retention Scheme (CJRS) and Self-Employment Income Support Scheme (SEISS).
The two schemes were announced by the Chancellor, and are run by HM Revenue and Customs (HMRC), as part of a package of support measures for businesses affected by the Coronavirus outbreak.
According to HMRC businesses on the Isle of Wight have furloughed 15,400 jobs since the CJRS was launched on 20th April 2020.
The Government announced this scheme would be extended until the end of October.
6,000+ self employed residents supported
Rolled out in May, the SEISS has supported 6,100 self-employed individuals on the Island who’ve been adversely affected by the Coronavirus outbreak. Up to 31st May 2020, grants worth a total of £16,400,000 (£16.4 million) have been paid.
As with the furlough scheme, the SEISS has also been extended with those eligible able to claim a second and final grant in August of up to £6,750.
Further guidance on both schemes will be available tomorrow (Friday 12th June 2020) on the Government Website.
Lack of support for Directors
A petition calling for a Coronavirus support package for Directors or Shareholders of small limited companies has attracted over 78,000 signatures.
Many owners of businesses who take their income via dividends have fallen through the gap as far as Government support is concerned.
The Government have responded to the petition by saying:
Dividends are not covered by the CJRS. Income from dividends is a return on investment in the company, rather than wages; under current reporting mechanisms it is not possible for HM Revenue and Customs (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.
Petitions Committee call for revised response
However, the Petitions Committee (the group of MPs who oversee the petitions system) have considered the Government’s response to this petition.
They felt that the response did not directly address the request of petition and have therefore written back to the Government to ask them to provide a revised response.
Image: howardlake under CC BY 2.0
