Self-employed receive the fourth and final grant of £ 7,500 in the budget

Originally written by Timothy Adler about small business

Rishi Sunak is expected to announce a fourth and final round of the £ 7,500 self-employed grant in next week’s budget.

As before, certain self-employed people can apply for a Self Employment Income Support Grant (SEIISS) up to £ 7,500 over a three-month period in February, March and April.

If so, however, next week’s announcement again ignores the over a million people who have been banned from self-employed scholarships because they either have a parallel source of income or they pay themselves out in dividends or make over £ 50,000 a year.

Last month, an influential think tank at the Institute for Fiscal Studies (IFS) said the government should act to help self-employed who are excluded from Covid support as more than 50 percent of their income comes from other countries, an exclusion, of women with modest incomes disproportionately attacked.

> See also: The government must help the self-employed who are excluded due to the 50% income rule

In the meantime, corporate groups have written to Mr. Sunak asking him to help the company’s nearly 800,000 directors who have been frozen out of emergency relief from Covid-19. This was viewed as a stealth attack by the HMRC as the company’s directors pay corporate tax of 19 percent.

However, according to the Telegraph, the grant system could be abolished from May or drastically scaled back as lockdown restrictions in England are due to be lifted completely by the end of June.

> See also: Covid-19 Roadmap – Plan for the reopening of shops, gyms and zoos from April 12th

Currently, the maximum cap of £ 2,500 per month is calculated on a permitted 80 percent of profit. Mr Sunak has talked about dropping this to give grants against 20 percent of profits when the economy opens up. Another idea is to make independent scholarships even more targeted.

So far, SEISS has cost the Treasury Department £ 18.9 billion.

The first grant requested 2.6 million people for a total of £ 7.6 billion, the second of 2.3 million requested costs of £ 5.9 billion and the third requested a cost of £ 1.9 million. People £ 5.4 billion.

further reading

Budget 2021 and what it means for small businesses

Self-employed receive the fourth and final grant of £ 7,500 in the budget

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