Originally written by Timothy Adler on Small Business
HMRC is giving the self-employed more time to file their tax return if they give Covid as an excuse for late filing.
This year, almost 12m self-employed people, those with second forms of income and landlords are due to file a personal tax return by the end of January.
Almost 5.5m of those 12m self-assessment taxpayers are yet to submit returns, with weeks to go before the deadline.
>See also: Prospect union calls for emergency help for excluded self-employed
However, the taxman is developing a simplified “Covid excuse” form that will allow the self-employed to miss the January 31 deadline for filing and paying tax.
It will allow those who say they have a reason for late filing due to the pandemic to avoid stiff penalties, with the Sunday Times quoting sources that HMRC is planning a “very lenient” attitude.
The decision will be a boost for millions of self-employed people who put money aside to pay income tax at the end of the year but have had to use their savings to stay afloat.
Freelancers’ incomes fell 30 per cent to record lows last year, according to the freelancer body IPSE. One in five self-employed people will have to
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Taxman gives self-employed more time to file your tax return
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
HMRC is giving the self-employed more time to file their tax return if they give Covid as an excuse for late filing.
This year, almost 12m self-employed people, those with second forms of income and landlords are due to file a personal tax return by the end of January.
Almost 5.5m of those 12m self-assessment taxpayers are yet to submit returns, with weeks to go before the deadline.
>See also: Prospect union calls for emergency help for excluded self-employed
However, the taxman is developing a simplified “Covid excuse” form that will allow the self-employed to miss the January 31 deadline for filing and paying tax.
It will allow those who say they have a reason for late filing due to the pandemic to avoid stiff penalties, with the Sunday Times quoting sources that HMRC is planning a “very lenient” attitude.
The decision will be a boost for millions of self-employed people who put money aside to pay income tax at the end of the year but have had to use their savings to stay afloat.
Freelancers’ incomes fell 30 per cent to record lows last year, according to the freelancer body IPSE. One in five self-employed people will have to
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Prospect union calls for emergency help for excluded self-employed
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The Prospect union, recognising the plight of the 3m self-employed excluded from government Covid support, has devised an emergency plan.
Its Self-Employment Stabilisation Scheme (SESS) would bolt onto the existing Self Employment Income Support Scheme (SEISS) and offer help for the millions of Britons who have fallen through the cracks in government support, through no fault of their own.
Reasons for exclusion include being a company director or not having three years’ worth of accounts to submit to HMRC.
>See also: Liverpool launches £9.5m grant fund for ‘excluded’ self-employed
Prospect general secretary Mike Clancy called the Treasury’s treatment of the 3m excluded self-employed “disgraceful”, given how the government has encouraged self-employment and entrepreneurialism in the past.
The SESS would close existing gaps in the SEISS scheme and would introduce sectoral funds in areas with large freelance workforces, such as the creative industries.
In particular, the SESS proposes:
Allowing those who submit tax returns in January 2021 to access the fourth round of SEISS
A Freelancers Fund to support employers in sectors with large freelance workforces (such as creative industries) to take on freelance workers
Allow those who earn less than half their income through self-employment or earn more than £50,000 per annum
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Liverpool launches £9.5m grant fund for ‘excluded’ self-employed
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Liverpool has launched a £9.5m grant fund to specifically help the self-employed in hospitality and leisure excluded from government Covid support.
This includes support for the self-employed, sole traders or the home-based and their supply chains.
The Liverpool self-employed grant fund is the first in England specifically aimed at the “excluded and forgotten” from national support schemes such as the Self-Employment Income Support Scheme.
Businesses based in Halton, Knowsley, Liverpool, Sefton, St Helens and Wirral are eligible for support from the new £9.5m fund.
Last week, Liverpool mayor Steve Rotheram wrote to chancellor Rishi Sunak alongside London mayor Sadiq Khan and Manchester mayor Andy Burnham urging him to do something for the 3m self-employed who have found themselves excluded from national support.
It is estimated that there are 3m self-employed excluded from government Covid-19 business support.
Forgotten Limited, the pressure group for small limited company directors affected by the pandemic, said that 70 per cent of its members had not received any government support since the onset of the pandemic in March. Even if they make it to Christmas, 93 per cent doubted their small limited companies would still be trading by Easter.
Mr Rotheram said: “This latest round of
Hot Business News Today
Liverpool launches £9.5m grant fund for ‘excluded’ self-employed
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Liverpool has launched a £9.5m grant fund to specifically help the self-employed in hospitality and leisure excluded from government Covid support.
This includes support for the self-employed, sole traders or the home-based and their supply chains.
The Liverpool self-employed grant fund is the first in England specifically aimed at the “excluded and forgotten” from national support schemes such as the Self-Employment Income Support Scheme.
Businesses based in Halton, Knowsley, Liverpool, Sefton, St Helens and Wirral are eligible for support from the new £9.5m fund.
Last week, Liverpool mayor Steve Rotheram wrote to chancellor Rishi Sunak alongside London mayor Sadiq Khan and Manchester mayor Andy Burnham urging him to do something for the 3m self-employed who have found themselves excluded from national support.
It is estimated that there are 3m self-employed excluded from government Covid-19 business support.
Forgotten Limited, the pressure group for small limited company directors affected by the pandemic, said that 70 per cent of its members had not received any government support since the onset of the pandemic in March. Even if they make it to Christmas, 93 per cent doubted their small limited companies would still be trading by Easter.
Mr Rotheram said: “This latest round of
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City mayors warn of mental health pandemic among self-employed
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Three mayors of England’s biggest cities have written to Rishi Sunak calling him to help the 3m self-employed excluded from Covid business support.
London mayor Sadiq Khan, Manchester mayor Andy Burnham and Liverpool mayor Steve Rotheram have urged the chancellor to help those who have fallen through the cracks of the self-employed income support scheme (SEISS).
Otherwise, warned Mr Burnham, England faces “a mental health pandemic on top of Covid”.
>See also: 1m self-employed face having to pay tax bill larger than what they earnt
It is estimated that 10 per cent of the UK workforce have found themselves excluded from Covid-19 support, according to pressure group ExcludedUK.
Mr Burhnam said: “We’re here together to send a message to the chancellor that it’s no exaggeration to say that jobs, homes and marriages are hanging in the balance … this is so wrong on so many levels”.
The Manchester mayor said the government’s cold shoulder for those who have just taken the plunge and gone self-employed, doing just what the government wants, sends the wrong message about becoming an entrepreneur.
Mr Burnham said that there were just days left to get the message across to the chancellor before his government spending
Hot Business News Today
City mayors warn of mental health pandemic among self-employed
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Three mayors of England’s biggest cities have written to Rishi Sunak calling him to help the 3m self-employed excluded from Covid business support.
London mayor Sadiq Khan, Manchester mayor Andy Burnham and Liverpool mayor Steve Rotheram have urged the chancellor to help those who have fallen through the cracks of the self-employed income support scheme (SEISS).
Otherwise, warned Mr Burnham, England faces “a mental health pandemic on top of Covid”.
>See also: 1m self-employed face having to pay tax bill larger than what they earnt
It is estimated that 10 per cent of the UK workforce have found themselves excluded from Covid-19 support, according to pressure group ExcludedUK.
Mr Burhnam said: “We’re here together to send a message to the chancellor that it’s no exaggeration to say that jobs, homes and marriages are hanging in the balance … this is so wrong on so many levels”.
The Manchester mayor said the government’s cold shoulder for those who have just taken the plunge and gone self-employed, doing just what the government wants, sends the wrong message about becoming an entrepreneur.
Mr Burnham said that there were just days left to get the message across to the chancellor before his government spending
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Self-employed Income Support Scheme (SEISS) to be extended at 40%
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
The government is getting ready to extend the Self-Employed Income Support Scheme (SEISS) to support freelancers and the self-employed through to April 2021.
Two further grants will be offered:
The first covers November 2020 to January 2021 at 40 per cent of trading profits, capped at a total of £3,750
The second covers January 2021 to April 2021, the level is yet to be announced
SEISS is being reintroduced as England prepares to go back into lockdown from November 5th until December 2nd, though this could be extended.
How does this compare to the previous SEISS grants?
The third round isn’t as generous as the first and second. The second grant round covered 70 per cent of trading profits, capped at £6,950. The first grant covered 80 per cent of trading profits, capped at £7,500.
Am I eligible for the next Self-employed Income Support Scheme grants?
You must have been eligible for the first and second rounds of SEISS to apply. You must also declare that you were trading (but are unable to do so due to coronavirus) and plan to continue trading.
The online application service for the next grant will open on December 14th 2020 and HMRC will be providing
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MPs to fight Sunak over move to hike national insurance for self-employed
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
MPs plan to fight chancellor Rishi Sunak over his move to increase National Insurance tax for the self-employed, bringing it into line with PAYE.
Back in March, the chancellor hinted that he wanted to increase NI for the self-employed, to help pay for the Self-Employed Income Support Scheme (SEISS).
To date, the SEISS has cost the Treasury £13.4bn, with 2.7m self-employed claiming for the first income support grant, and 2.2m accessing the second.
>See also: Rishi Sunak plans grants for small businesses hit by hard lockdown
Earlier this year, Sunak was considering whether to raise national insurance contributions (NICs) paid by the self-employed by 3 per cent to pay for the SEISS.
Currently, class 4 NICs for self-employed people stand at 9 per cent a year, while those who are employed pay 12 per cent a year. Increasing this duty would add £500 to the annual tax bill for anyone self-employed earning over £42,000 a year; and £200 for the average self-employed worker.
The chancellor has since delayed his autumn statement, given the fast-moving coronavirus situation and how quickly the Treasury has to think on its feet, expanding the Job Support Scheme.
>See also: £40m funding for hospitality firms in
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Solopreneurs earn a third less than full-time employees
by Anna Jordan • • 0 Comments
Originally written by Anna Jordan on Small Business
A sole trader’s income is around a third of that of their fully employed counterparts, according to a report from the Institute for Fiscal Studies (IFS).
Three years after starting their own businesses, people who went into solo self-employment after a period of unemployment report earning nearly 30 per cent – or £500 less – per month on average. That gap has gone up from 21 per cent in 2002-2003.
ONS figures show that there are more self-employed people than there have been in the past 40 years. However, this move towards self-employment hasn’t created many businesses of scale. According to the report, one in nine workers is now a sole trader with no employees. That’s up from one in 11 in 2008.
Worryingly, more than four in ten solopreneurs were classed as being in poverty in 2018-2019 after deductions from housing costs, compared to one in ten who are in full-time employment. They’re also more likely to be ‘materially deprived’.
All of that said, self-employed people typically have a higher level of job satisfaction and wellbeing than those who are in full-time employment. It’s even true for people who became self-employed because of a lack of