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<p>The Government has supported UK households throughout the pandemic with nearly
£400 billion of COVID support, including through the Self-Employment Income Support
Scheme (SEISS) which provided over £28 billion in grants to 2.9 million individuals.</p><p>
</p><p>The SEISS was designed to support those whose income had dropped temporarily
due to COVID-19. Like self-employed income, SEISS grants are subject to Income Tax
and self-employed National Insurance contributions at the recipient’s rate of Income
Tax in the year the grant was received. This was set out by the Chancellor when announcing
the scheme in March 2020, and in subsequent SEISS guidance throughout the scheme’s
lifetime.</p><p> </p><p>The Government does not think it is right to allow SEISS recipients
to alter the rate of tax paid on that income over time. This is to ensure fairness
for recipients of support across various schemes and for the taxpayers who are funding
the schemes.</p><p> </p><p>The Government has implemented an unprecedented package
of support for taxpayers struggling with paying tax liabilities. HMRC has scaled up
its longstanding Time to Pay policy, which allows any business or individual in temporary
financial difficulty to schedule their tax debts into affordable, sustainable, and
tailored instalment arrangements.</p><p> </p><p>Anyone experiencing difficulties paying
their tax bill can discuss payment options with HMRC, who are committed to supporting
taxpayers through difficult times and will agree a Time to Pay arrangement wherever
possible. There are further details available on GOV.UK.</p>
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