This a golden opportunity to seal a yawning gap in support for the self-employed
It is finally time to do right by hundreds of thousands of excluded freelancers
Esther McVey TELEGRAPH 19 January 2021
The end of the tax year is not generally a cause for celebration in many circles but, for one group, this year it could – indeed should – provide a lifeline.
Among the millions who have slipped through gaps in government support during the pandemic, the newly self-employed have missed out on desperately-needed help by weeks, days or even hours.
Hundreds of thousands who became self-employed after the end of the tax year ending March 2019 found they were disqualified from help, essentially because there was not enough paperwork to keep the authorities happy.
By the end of this month though, many should have submitted their first self-assessments. Why is this significant? Well, it will provide HMRC with a ready-made source of data that should allow some financial support to be offered without there being an inherent risk of fraud.
Not all of them would be eligible for help, not all would wish to make a claim and some will miss the filing deadline.
The Gaps in Support APPG estimates at least 150,000 people could benefit, with extra grants costing about £600m.
A pot of money worth around £2bn was set aside to help supermarkets as part of the Covid-19 business rates relief scheme, which could be used to help fund additional support.
This is a golden opportunity for the Treasury and HMRC to seal one of the yawning gaps in the Covid-19 financial support schemes. Don’t forget that, as Britain battles back from the pandemic, this group will help fire the economy back to life.
Our need for self-starters and entrepreneurs has never been greater and it is vital that we now support them, easing their financial burden just as millions of others have already had that burden eased. We will, after all, be relying upon them to pay into the system so it is only right and proper therefore that the system helps them through the next few challenging months.
No one is asking for special treatment. But, having survived 2020 without any support, there is now no good reason why these excluded freelancers should not, finally, be given the help that many so desperately need.
The tax returns are almost done, the paperwork will soon be in order, appropriate funding has been identified. These workers have done nothing wrong, but have fallen through the gaps in Government support schemes.
It is, finally, time to do the right thing.
