PAC Quizzes HMRC Over Forgotten Freelancers

The Public Accounts Committee (PAC) has grilled HM Revenue and Customs (HMRC) over the forgotten limited company directors and freelancers who have been excluded the financial support they deserve from the UK Government during the COVID-19 pandemic.

HMRC has distributed over ￡80 billion in financial aid to individuals and businesses nationwide, including the Coronavirus Job Retention Scheme.

However, the PAC has noted the ‘quirks in the tax system' that have resulted in millions of ‘forgotten’ small firms that have not qualified for any meaningful Government aid, according to the Guardian, despite the lockdowns and tier restrictions meaning many cannot work at all.

The PAC report was published on 20th January 2021, and HMRC has until 3rd March 2021 to respond and explain the situation in full as to why it cannot offer financial help to the millions of freelancers, contractors and small limited company directors included in the #ForgottenLtd campaign.

Campaigners are asking parity with their sole trader counterparts that could claim the Self-Employed Income Support Scheme (SEISS).

The PAC is wanting HMRC to 'set out steps it can take to overcome these obstacles’ for the #ForgottenLtd, as well as those included in the Excluded UK campaign, which totals approximately 10 per cent of the UK workforce.

Rachel Flower, spokesperson, Excluded UK, said: “The overriding call by Excluded UK is for parity between UK taxpayers – because of the gaps in the support schemes there are an estimated three million individuals who have been excluded from accessing the schemes through no fault of their own and as a result pushed into debt and hardship.”

She added that these individuals, and their households, need to be fairly supported and treated equally to those who have had access to financial support during the coronavirus crisis.

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