SEISS: HMRC condemned for ‘hopelessly outdated’ tax system and support ‘unfairness’
SEISS is the more commonly used name for the Self-Employment Income Support Scheme, designed to offer grants to self-employed Britons during COVID-19. As support rolls on, soon entering the fourth grant issued by the government, some have raised issues with the ways the scheme functions. Overseen by Her Majesty’s Revenue and Customs (HMRC), SEISS has specific eligibility rules which meant many people, now commonly known as ExcludedUK, have been left outside of the terms of support.
While details of the fourth grant are expected in the coming days and weeks, those excluded will not be able to access this financial support.
As a result, HMRC has been criticised for its approach, which one expert attributed to the tax system as it currently operates.
Andy Chamberlain, Director of Policy at IPSE, commented on the matter.
He said: “The UK’s hopelessly outdated tax system played a key part in ensuring over 1.5million self-employed people were excluded from support.
READ MORE: SEISS warning: Britons must declare grants in future tax returns
Self-employed people must have also traded in the 2019/20 to unlock the support grant.
Mr Chamberlain, however, also highlighted issues with the current ‘IR35’ tax system as it stands.
IR35 describes tax legislation which is designed with the purpose to crack down on tax avoidance by workers and companies which hire them.
The legislation seeks to identify, among other issues, workers who are being employed on a ‘self-employed’ basis to hide their true employment status.
He continued: “We also believe it is absolutely right for the Committee to push HMRC to online steps to overcome these obstacles, and get support to the many self-employed who are still desperately struggling.
“We welcome, too, that the Committee has highlighted the inherent unfairness of the IR35 regulations, which are a poor patch-up of our outdated tax system.
“We are deeply concerned government is still pushing ahead with the very damaging changes to IR35 in April, when the self-employed sector will still be at its most fragile.
“We urge government to change course on IR35, plug the gaps in support and, in the longer-term, commit to a structural overhaul of the tax system to make it work for the self-employed.”
Express.co.uk contacted HMRC for comment on the matter.
A spokesperson said: “The government has done all it can to help as many people as possible, providing support worth more than £280 billion and adapting our schemes to include as many people as possible – for example, by extending the cut-off date for the Coronavirus Job Retention Scheme, bringing in more than 200,000 employees to the scope of the scheme.
“HMRC delivered COVID-19 support schemes at unprecedented speed, protecting the livelihoods of millions of people.
“We do not underestimate the challenges faced by individuals and businesses during the pandemic, and our top priority is getting financial support to those struggling with the economic, while protecting the taxpayer against fraud.
“Those not eligible for support through these schemes can still benefit from the strengthened welfare safety net, accessing help like Universal Credit.”
Stay connected with us on social media platform for instant update click here to join our ????️????️ Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Business headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Also, if you like our efforts, consider sharing this story with your friends, this will encourage us to bring more exciting updates for you.
