Self-employed fear unaffordable tax bills as a result of coronavirus

Accountancy and business advisors Whitley Stimpson reports that as many as one million self-employed people could soon be facing tax bills bigger than their annual earnings in 2019-20 due to the coronavirus pandemic.

A large proportion of the UK’s 4.5m strong freelance workforce pre-pay their income tax bills in instalments twice a year, in amounts based on the previous year’s earnings. The first payment on account will be due in January 2021 with the next in July 2021.

Jonathan Walton, director at Whitley Stimpson explains: “In a normal year, payment on account for the self-employed is not a problem, but this year it will be very tricky for some as their earnings have been considerably impacted. Of particular concern are those groups who haven’t been able to access the Self Employment Income Support Scheme, or those affected by revisions to the Chancellor’s job support scheme.”

It is estimated that around 1.5m people working for themselves were unable to claim support under the SEISS, including limited company directors and people who were newly self-employed when the virus hit.

Whitley Stimpson which has offices in Banbury, Bicester, High Wycombe and Witney, has been helping businesses to navigate the economic implications of the pandemic, guiding clients through the grants, tax write-offs, tax deferrals, benefits and other support measures and schemes in place.

The company, which has been providing financial advice to businesses and individuals for over 89 years, is consistently ranked within the top 100 practices in the country and is recognised as one of the top ten accountancy employers in the UK.

If you would like to speak to a professional regarding coronavirus related support, please contact 01295 270200 or visit www.whitleystimpson.co.uk

Whitley Stimpson

Whitley Stimpson Ltd is one of the region's leading independent accountancy and business advisory firms.

Leave a Comment