Time To Level Up As Government Discriminates Against Self-Employed

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As the next Self-Employed Income Scheme grant becomes open to applications, one tax firm says the government is discriminating against the self-employed.

You can apply for the next grant as of 30 November (please note The Installer previously listed the date as 14 December which was correct at the time of publishing).

You can claim up to £7,500. You can check if you are eligible for the grant as the rules have changed. ​

 “Extensive support has been provided to employees via the furlough scheme and many established businesses via business rates holidays and government-supported loans but policies both before and during the pandemic have often discriminated against and disadvantaged the self-employed.”

– Robert Salter 

Tax Director, Blick Rothenberg

Encourage entrepreneurship

“Unemployment has increased sharply during the pandemic and now stands at approximately 5%, a rise of almost 1% from the same time last year," continues Blick Rothenberg's Salter. "The government should be doing everything possible to encourage entrepreneurship and to support those individuals who are already in self-employment or are actively seeking to become freelance/self-employed workers.

“This is especially necessary given the struggles that many established parts of the economy have suffered over the past six months and the understandable reluctance of such established businesses to recruit full-time, traditional staff at the present time.”

IR35 rules

Salter adds: “The discrimination continues with the proposed changes to the so-called IR35 rules. These rules will, in simple terms, result in many freelance contractors working via their own companies (so called Personal Service Companies) being treated as ‘deemed employees’ for tax purposes.

"Contractors caught by IR35 will in future suffer a double whammy - typically being treated as employees for tax purposes whilst not having any of the benefits typically associated with employment including employer-provided pensions, paid holiday and sick pay and the increased job security that regular employment can bring.

“The IR35 changes undermine the flexible labour markets which have been a hallmark of the UK economy for 30+ years – at a time when we probably need even more flexibility than ever before.”

Picture: Robert Salter of Blick Rothenberg says the government should level things up for the self-employed.

Article written by Cathryn Ellis
27th November 2020

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