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- IPSE tells Treasury Select Committee limited company contractors and the newly self-employed urgently need more support
IPSE tells Treasury Select Committee limited company contractors and the newly self-employed urgently need more support
- 21 Apr 2020
Limited company contractors and the newly self-employed urgently need more support during the Coronavirus crisis, Andy Chamberlain, Director of Policy at IPSE (the Association of Independent Professionals and the Self-Employed) told the Treasury Select Committee today.
IPSE warns limited companies need more support
Speaking at the evidence session, Mr Chamberlain called for the government to extend the Coronavirus Job Retention Scheme to include dividends – through which many limited company directors pay themselves.
Mr Chamberlain also urged the government to let people who are new to self-employment submit their tax return for this year and use this to allow them access to the Self-Employment Income Support Scheme.
Recent IPSE research shows that 69 per cent of limited company contractors and 43 per cent of sole traders do not feel there is enough government support to sustain them in the coming months.
Clips from the evidence session
- We need more support for limited company directors and the newly self-employed
- The Self-Employment Income Support Scheme is generous, but has sharp edges
- The UK’s 710,000 limited company directors are getting little support compared to other groups
- Many limited company directors pay themselves through dividends and cannot count this through the furloughing scheme
- Government must not push ahead with the changes to IR35 and instead fully review the self-employed tax system
Andy Chamberlain, Director of Policy at IPSE (the Association of Independent Professionals and the Self-Employed) said: “The Self-Employment Income Support Scheme is very generous – it’s unprecedented – but it’s got sharp edges. If you fall inside it, it’s good, but if you don’t, you get nothing.
“If you earn one penny over £50,000, you get nothing. If you only recently became self-employed, you get nothing. If you’re working through your own limited company, you get nothing under this scheme – although you may be able to get something from the Job Retention Scheme. What we’re saying is: the support available under the SEISS scheme is brilliant, but can we now get support for the people who are clearly falling through the gaps of it.”
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