Written evidence submitted by Rebecca Turner, Pink Pixie Parties Ltd
In these unprecedented times, I understand the government is working hard to manage the widespread implications of Covid-19. I would like to thank all MP’s and the cabinet for their service and continued efforts to protect the health of the nation, and for the economic measures put in place so far by the Chancellor. It truly is a time where we, as a nation, must come together to protect our NHS, and the lives of thousands of fellow countrymen and women in the United Kingdom. Therefore, the government is mandating me to stay at home to save lives and I am following those instructions.
Unfortunately to date, myself and some 2 million other small business owners have been unfairly excluded for any scheme to alleviate the financial pressure on our businesses caused by this governmental instruction. The impact of doing my civic duty and protect lives leaves me facing destitution.
I am the director of a Limited Company and unfortunately, do not benefit from any of the schemes announced to lessen the burden caused by normal working life being suspended. It is widely acknowledged in the media that approximately 2 million taxpayers have been knowingly excluded from any relief due to being sole directors of companies. The Rt Hon Rishi Sunak is aware of the issue, yet often declares that we are “in this together” however, also states that it is not possible to provide any grants to small companies with sole directors.
From the perspective of a director of small limited companies, I understand The Rt Hon Rishi Sunak’s declaration of togetherness could not be further from the truth. The obvious truth is that there are two distinct groups of taxpayer; those that are being given financial assistance, and those that are not. I am not being aided and am being treated unfairly. My self-employed counterparts are not only able to access state help via HMRC but are also able to work during this time. I cannot furlough as this would leave my business completely unattended, with the exception of statutory duties and in doing so adversely impacts the future viability of the business. PAYE employees and PAYE Directors also have an assistance scheme.
I pay myself a small wage plus dividends in line with current rules. Notably the structure of my Limited company and directorship is allowable in law.
My own personal circumstances are that as a children’s entertainment company we have been forced into shut down since the middle of March and no one from the entertainment industry is going to be returning to work before the end of the year. I havnt seen any revenue since the beginning of March and really am financially struggling as a business to stay afloat with having to refund all my clients that had parties booked in.
Unlike other sectors who have been able to carry on receiving revenue and are getting financial help from the grants and schemes that have been set up. I wont.
I dont have a premises as I work from home so cant apply for the £10K grant.
I wont even receive 80% help from the SEISS or CJRS scheme as Ltd company directors dont qualify.
I have built my business up from the ground for 10 years with blood sweat and tears and will not apply for a loan to get me into financial debt which may see my company go into liquidation because of it.
The tax collected from me and my business does not afford me any state help in these most extreme of circumstances. I appeal to the government to stop discriminating against me as a legitimate taxpayer.
Further, I request that consideration be given to the following:
Your urgent intervention is required to stop myself and very many people from facing financial ruin and the subsequent problems thereafter, which will only put further pressure on the system in the longer term.