Self-employed fear unaffordable tax bills in wake of virus

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The FT reports on fears that as many as 1m self-employed people could face tax bills bigger than their annual earnings following dramatic drops in their income compared to 2019-20. Andy Chamberlain, Director of Policy at IPSE commented: "Most years, payment on account is not a problem, but this year so many people and their business have been so badly impacted - particularly those groups who haven't been able to access the Self Employment Income Support Scheme." Elsewhere, the Independent reports on analysis by Labour’s Ed Miliband who estimates that, in areas under the most severe restrictions, the average self-employed worker in the arts or hospitality sectors will receive just £450 a month following revisions to the Chancellor’s job support scheme. Meanwhile, those with working partners, without children or owning their own home may not receive enough universal credit to plug the gap left by the reduction in financial support. And those with savings over £16,000 - often kept aside by the self-employed in anticipation of future tax bills - will be ineligible for the benefit. The Treasury hit back pointing to grants, tax write-offs, deferrals and other support measures put in place for the self-employed.

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