100 signatures reached
To: Chancellor of the Exchequer
Assistance for the Self Employed
I would like the government to review the system of assessment for self employed people. I would like all self employed people to be able to take advantage of the rules of averaging profits over two or even three years.
Why is this important?
Most of my clients are artists and crafts people and some can claim artists or creative averaging. This means that the profits of a good year resulting from a gallery show or the sale of a book can be averaged with the profits of the preceding or following year if it would be beneficial.
My petition is to try to persuade the government to extend this to all self employed people who are not receiving the benefits available to employed people in the current crisis.
One of my clients is a hairdresser who works only in care homes. Since the care homes have been closed to visitors her income has disappeared. The Chancellor has deferred the July SA tax payments until January next year but they will still have to be paid. If my suggestion was introduced her profits of the current tax year (2019/20) could be averaged with those of the next tax year (2020/20) and could result in a reduction of her liabilities.
I also do the accounts and tax return for a builder/decorator and general handyman. His work has dropped off because of social distancing.
I have several clients but not many of them are VAT registered and the rest are below the threshold. Consequently I am more aware than most accountants of how the self employed will be affected by the current crisis. A temporary change to the rules of self assessment would, in the long term, alleviate some of their problems.
