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You can find the current article at its original source at https://www.theguardian.com/politics/2020/mar/27/chancellors-coronavirus-bailout-ignores-many-self-employed
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| Version 1 | Version 2 |
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| Chancellor's coronavirus bailout ignores many self-employed | Chancellor's coronavirus bailout ignores many self-employed |
| (1 day later) | |
| Actors and other artists in sole-person limited companies to get nothing | Actors and other artists in sole-person limited companies to get nothing |
| Thousands of self-employed people – in particular those working in the creative industries – who set up limited companies have been “devastated” by being excluded from the chancellor’s bailout. | Thousands of self-employed people – in particular those working in the creative industries – who set up limited companies have been “devastated” by being excluded from the chancellor’s bailout. |
| On Thursday night Rishi Sunak said the government would pay self-employed workers 80% of their profits – up to £2,500 a month – for three months, starting in June. | On Thursday night Rishi Sunak said the government would pay self-employed workers 80% of their profits – up to £2,500 a month – for three months, starting in June. |
| He said the measure was “one of the most generous schemes anywhere in the world” and would help 95% of the self-employed. A similar scheme has already been offered to employees. | He said the measure was “one of the most generous schemes anywhere in the world” and would help 95% of the self-employed. A similar scheme has already been offered to employees. |
| However, it has emerged that the latest scheme will not help anyone who has set up a sole-person limited company, meaning thousands of freelance writers, photographers and others working in the creative arts will get no help from it. | |
| The Guardian has been contacted by several of those affected, who say this will ruin them financially. | |
| They will be covered for 80% their salary by the coronavirus job retention scheme if they are operating PAYE schemes, or face having to claim universal credit instead, with its far lower payouts. | |
| Thousands of actors, designers, film crew and others found themselves out of work and unpaid when the government introduced its coronavirus restrictions. | Thousands of actors, designers, film crew and others found themselves out of work and unpaid when the government introduced its coronavirus restrictions. |
| One of those is a sound engineer who does work for documentaries for the BBC and Netflix. All his projects are on hold and his work has evaporated, he said. | One of those is a sound engineer who does work for documentaries for the BBC and Netflix. All his projects are on hold and his work has evaporated, he said. |
| “This is a disaster for thousands of people like me,” the worker, who did not want to be named, told the Guardian, after two hours on while calling the universal credit phone line. | “This is a disaster for thousands of people like me,” the worker, who did not want to be named, told the Guardian, after two hours on while calling the universal credit phone line. |
| “I was advised to set up the limited company as it was a tax-efficient way to operate, and because it makes processing payments much simpler. Many who work in this world have done the same. We are just as self-employed as those being helped, but inexplicably find ourselves left out the scheme. It’s devastating.” | “I was advised to set up the limited company as it was a tax-efficient way to operate, and because it makes processing payments much simpler. Many who work in this world have done the same. We are just as self-employed as those being helped, but inexplicably find ourselves left out the scheme. It’s devastating.” |
| Brian Palmer, a tax policy expert at the Association of Accounting Technicians, said this group was stuck in the middle of the two bailout schemes. | Brian Palmer, a tax policy expert at the Association of Accounting Technicians, said this group was stuck in the middle of the two bailout schemes. |
| “Many of this group draw a low salary and top up their income with dividends. They will not qualify as self-employed, or for a significant payment from the coronavirus job retention scheme. Instead, they risk dropping through the cracks,” he said. | “Many of this group draw a low salary and top up their income with dividends. They will not qualify as self-employed, or for a significant payment from the coronavirus job retention scheme. Instead, they risk dropping through the cracks,” he said. |
| “We must ensure that everyone gets the support they need to stay afloat and that the UK economy is able to not only recover, but also to thrive.” | “We must ensure that everyone gets the support they need to stay afloat and that the UK economy is able to not only recover, but also to thrive.” |
| Heather Self, a partner at the accounting and business advisory services Blick Rothenberg, agreed this group was likely to be feeling left behind. | Heather Self, a partner at the accounting and business advisory services Blick Rothenberg, agreed this group was likely to be feeling left behind. |
| “The government and HMRC have worked incredibly hard to get something out which will help the majority, but there are some losers.’,” she said. “A family with one earner on £51,000 will get nothing, whereas another with two people earning £49,000 each will get two lots of support. Someone with a mix of self-employed and earned income also may not qualify.” | “The government and HMRC have worked incredibly hard to get something out which will help the majority, but there are some losers.’,” she said. “A family with one earner on £51,000 will get nothing, whereas another with two people earning £49,000 each will get two lots of support. Someone with a mix of self-employed and earned income also may not qualify.” |
| The Treasury has been approached for comment. | The Treasury has been approached for comment. |