While many businesses and a portion of self-employed individuals are being supported by the measures recently announced by the Chancellor to help them through the coronavirus pandemic, TaxAssist Accountants is concerned about the large sections of the business community which appear to have been overlooked.
Concerned for the financial and personal welfare of those business owners, individuals and their families who have been left without the help and support they urgently need to survive, TaxAssist Accountants wrote to the Chancellor on 2nd April 2020.
In the letter, TaxAssist outlines five key issues it believes should be addressed:
- Simplify the process for sole/small company directors to be furloughed under the Coronavirus Job Retention Scheme
- Recognise that many small company directors receive large parts of their income through dividends, which are not covered under this scheme
- The proposal for the self-employed to look at their profits for three years for averaging purposes, leaving those who commenced trading since 5th April 2019 financially stranded
- The unfairness of the £50,000 trading profit threshold for the self-employed
- The need for emergency funding measures to speed up the flow of money
Daren Moore FCCA, Group Commercial Director for TaxAssist Accountants, explained: “We understand the challenges the Government faces in dealing with this crisis, however we feel the Chancellor needs to review his approach to the small business and self-employed sectors. The affected group who haven’t been presented with any form of financial support represent a significant portion of businesses and self-employed people across the UK. These sectors underpin much of the economy.
“While the Chancellor said that ‘no one will be left behind’, we need to ensure that everyone is included in this statement and that all sectors are supported and protected so they remain intact, fully functioning and working hard when the recovery does come.”
“Other countries have been able to quickly release funds to small businesses and individuals with the goal of stabilising the economy immediately until this outbreak is over. The knock-on effect of the UK’s independent businesses and those self-employed not being able to survive will be more painful for our economy in the long run. We are pleading with the Chancellor to take action now and save these businesses while he still can.”