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This week's opinion: 29 October 2020

27 October 2020 / Andrew Hubbard
Issue: 4766 / Categories: Comment & Analysis
Yet another job support scheme

Another week, another job support scheme. As I listened to Rishi Sunak’s announcements, I felt the collective groans of the tax profession: more rules to understand; further client queries to deal with; whether to charge for the work; and ‘Why can’t Sunak make his mind up once and for all?’ I have strong sympathy for that view, but I accept that, as the national infection picture changes, policy has to change with it. I’d love to think that this is the last round of measures but I fear that in a month or two there will be yet more change. 

I would have welcomed a fresh look at support for those who fell through the gaps in the original schemes – typically the newly self-employed and owner-directors extracting funds through dividends. I appreciate that concerns about abuse meant that there had to be some tough decisions early on. 

If there is any doubt about this, see the latest National Audit Office report (tinyurl.com/yynnx5b9) which reveals that, in a single weekend in May 2020, HMRC blocked around 87,000 claims worth £242m due to suspicious online activity. 

It is however six months since the introduction of the schemes and I don’t think it would have been too much to expect the government to look at bringing at least some of the excluded groups back into the support net. 

We face a tough winter and clients will need our support. We at Taxation will do all we can to provide the information advisers need, but it will help enormously if readers draw our attention to problems with the new measures so we can share concerns and raise them with HMRC.

If you do one thing...

Read the House of Commons’ Treasury committee’s latest evidence session on tax after coronavirus (tinyurl.com/y28r3wo8). There are many interesting ideas here.

Issue: 4766 / Categories: Comment & Analysis
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