Farmers could benefit from the Government’s coronavirus Self Employment Income Support Scheme (SEISS) but they need to study the small print first.
The package, announced by Chancellor Rishi Sunak, only applies to the self-employed, which includes sole traders and partners.
Graeme Davidson, partner in Forfar- based EQ Accountants, said while the emergency measures were essentially workable, lobbying was needed on ‘one or two aspects’.
“For limited companies when it comes to furloughed staff a director can pay themselves 80 per cent of their salary. But they cannot include dividends,” he said.
“Many of our clients who operate as limited companies do not pay themselves salaries but take dividends and they are therefore losing out. It is unfair on many small hard working business owners.”
Mr Davidson pointed out that many of the farming businesses in his client base were not so far being adversely affected by the coronavirus disruption.
That was not the case however for those who relied heavily on diversifications such as farm shops.
He added: “I am optimistic we can attract rates relief and support measures for most. But again lobbying is needed in the case of self-catering holiday accommodation.
"For some reason in Scotland, but not in England and Wales this type of enterprise is being excluded from grants under the Coronavirus Business Support Fund at both the £10,000 and £25,000 levels.”
The grants for this fund are administered in Scotland by local authorities rather than central Government.
Source: : Martyn Dobinson, Saffery Champness
For more information visit gov.co.uk