COVID-19 funding should be revised for self-employed
Well hats off to the Government for accelerating the payments to the self-employed under the self-employed grant scheme. However, there are 3 main classes of taxpayers which are being excluded from receiving financial assistance which is neither reasonable nor justified:
- Directors of limited companies are excluded on the basis that, according to the Chancellor, the profits of limited companies exceed £200,000. Now this might be the case for computer contractors working in the banking sector in the City, but it certainly doesn’t account for everyone. And it’s those taxpayers who fall outside this assumption who require the help.
- Self-employed individuals who commenced trading after 5 April 2019 on the basis they present a fraud risk. Where those individuals registered self-employed before COVID-19, then surely any risk is minimised, and grants should be awarded?
- Self employed individuals who invested heavily in plant and equipment where their resulting capital allowances claims reduced their profits to nil. Shouldn’t the grant be based on net profits before capital allowances? We certainly think so.
Hopefully, the Chancellor will reconsider his position on the three cases above.