Many contractors are still missing out on financial help despite SEISS lifeline

(2 minutes to read)

IPSE: ‘The numbers benefitting from SEISS are a far cry from the 95% of freelancers the Chancellor initially promised. There are 5 million self-employed people in the UK, but of these only up to 3.4 million are eligible.’

HMRC statistics have shown that up to 3.4 million of the UK’s 5 million self-employed are eligible for theSelf-Employment Income Support Scheme.

By the 31st May, 2.4 million claimed a total of £7 billion, with the average value per claim sitting at £2,900.

However, the Association of Independent Professionals and the Self-Employed (IPSE) has said that the figures show that the number of people eligible for the scheme is a ‘far cry’ from what was promised by the government.

Andy Chamberlain, Director of Policy at IPSE, explained, “The numbers benefitting from the Self-Employment Income Support Scheme (SEISS) are a far cry from the 95 per cent of freelancers the Chancellor initially promised. There are 5 million self-employed people in the UK, but of these only up to 3.4 million are eligible.

“This is because the scheme does not cover vital groups like freelancers who work through limited companies and the newly self-employed. There are also those whose incomes were over the threshold before the crisis, but who now find themselves with no income at all. We urge the government to do more for these groups, many of whom still have no sign of work coming in.”

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He added, “For those eligible for SEISS, on the other hand, there is no doubt the scheme is an essential lifeline. The fact that 2.4 million people claimed a total of £6.974bn in May is testament to how necessary this support is and what a relief it is to self-employed people across the UK. We would only urge more of the one million people who have not claimed to make use of the scheme if they need it. Struggling self-employed people should not be afraid to claim support: this is not a loan they will need to pay back, but a grant to keep freelancers who have lost their income going during this crisis.

“It is also excellent that the government has heeded our calls to extend SEISS until August, and we would only urge it to open the scheme out to more of the 1.6 million struggling freelancers who cannot access it. We recommend the government spends the money that one million have not claimed so far to extend support to these forgotten groups. We are a long way from the end of the Coronavirus crisis, and many more of our vital freelance workforce urgently need more support in the coming months to keep their businesses afloat.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
  • Same day payments- We offer same day payments as standard providing funds are received into our account by 9am, for no additional fee.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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