During the World War 2 Blitz in Britain 32,000 civilians were killed, the blitz lasted 8 months 5 days. In the UK since 28 February Covid-19 has killed 18,738 up to 23 April (56 days). One US institute has forecast the total deaths in the UK could be in the region of 37,494. PH England are forecasting 30,000 by th end of May

The UK borrowed approx £145 million in 1945 and it was not repaid until 2006. So far the government has pledged support at £122 billion, how long will our children / grand children / great grand children to repay this debt?

We have heard many comments that support is in place to keep businesses from closing, local council Grant’s, rate free periods, Job Retention Scheme to support employees. The key being to ensure we do not have a major increase in unemployment. One flaw in the strategy is the business owners are not getting any personal financial support. Small business director/shareholders can claim £575.20 this anomaly is because the majority of their monthly income would come from dividends. 

You may consider this fair as dividends are tax at lower rates than PAYE, add the cost of Corporation Rax paid and dividends are being taxed at 26.5% very close to the tax paid by self employed workers who are entitled up to £2500 per month and who can still earn from their commercial operation. Directors are not allowed to do this and can only fulfill their legal obligations

Director £30,000 – Salary £8,632.  Profits (£30,000 – £8,632) = £21,368

Corporation tax £4,060.  Dividends £17,308.  Dividend tax £858.  Take Home £25,082 (Total tax paid £4,918)                          

Self Employed £30,000 – Profits £30,000.  Income tax £3,500. Class 2 NIC £156. Class 4 NIC £1,923. Take home £24,421 (Total Tax & NI  £5,579)

Difference between Director and Self Employed Take home £661 (£12.71 per week!) This is only an illustration of one payment scenario – the most commonly used, and the current cap on the SEISS scheme, being £2500

We know the government have constantly mentioned that banks should be assisting with loans, how long are businesses expected to wait for answers on their applications. Many small businesses will close their doors forwver before the bank make their decision.