Self-employed receive the fourth and final grant of £ 7,500 in the budget
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) of up to £ 7,500 over a three-month period in February, March and April.
If so, however, next week’s announcement will once again ignore 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 nearly 800,000 business leaders who have been frozen out of the emergency support provided by Covid-19. This was viewed as a stealth attack by the HMRC as the company’s executives pay corporate tax at a rate of 19 percent.
However, according to the Telegraph, the grant system could be abolished from May or scaled back drastically as lockdown restrictions in England are due to be lifted completely by the end of June.
> See also: Covid-19 roadmap – plan for reopening shops, gyms and zoos from April 12th
Currently, the maximum cap of £ 2,500 per month is calculated on an allowable 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 requested a cost of £ 5.9 billion out of 2.3 million and the third requested a cost of £ 1.9 million. People £ 5.4bn.
Budget 2021 and what it means for small businesses