Briefing paper – Expanding the governments income support schemes
By Torrin Wilkins and Janey Little , August 2nd 2020. Centre Think Tank ISSN 2634-4696
This paper is a collection of our practical policy solutions to including those who have been excluded from the government income support schemes. This is an urgent matter, as the risk of a second COVID-19 wave increases each day. If a second wave hits the UK, it is paramount that we ensure the self-employed are not forgotten and get the support they need. This paper concludes:
- Increase the £50,000 cap on income to £100,000 and then taper off support payments up to £200,000.
- Scrap the rule that 50% of earnings must come from self-employment to claim under the Self-Employment Income Support Scheme.
- Allow limited companies to include dividends in earnings and let them claim on their turnover if they reinvest their money back into the company.
- Allow furnished holiday lettings to be counted under the Self Employment Income Support Scheme in the same way that Bed and Breakfasts are.
- Add into calculations payments any that are given in the form of discretionary commission and PAYE Tronc payments.
- For employees that have been made redundant or who are new starters, only proof of employment (such as a contract) will be needed.
- Remove time spent on maternity leave from Self-Employment Income Support Scheme calculations.
- Accept 2018-2019 tax returns or PAYE payments to include those who are newly self-employed, are freelancers or are on short-term contracts. For Annual PAYE the government should accept PAYE returns from the 20th of April.