Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps the Government is taking to ensure the accuracy of its data on the number of (a) small business, (b) self-employed and (c) sole traders that have been ineligible for Government support during the covid-19 outbreak; and what steps the Government is taking to deliver financial support to those categories.

HMRC have a range of processes and checks built into the running of the tax system, which ensures the accuracy of their taxpayer information. To support the Self-Employment Income Support Scheme (SEISS) a number of additional processes and checks have been introduced to ensure the correct eligibility decisions have been reached, based on the information available, and HMRC have also undertaken a number of manual reviews to cross-check the information held on the taxpayer’s self-assessment account.

The Government has introduced a comprehensive package of support for individuals and businesses to help combat the impact of COVID-19. For the self-employed and sole traders, the Government introduced the SEISS, which has received more than 2.6 million claims worth over £7.6bn. The Government will continue its support for millions of self-employed individuals through the SEISS extension. An initial taxable grant will be provided to cover three months’ worth of profits for the period from November to the end of January 2021. This is worth 20% of average monthly profits, up to £1,875.

For those ineligible for the SEISS, the Government has increased the Universal Credit standard allowance and relaxed the Minimum Income Floor for the duration of the crisis meaning that if self-employed claimants’ earnings have significantly reduced, their Universal Credit award will now increase to reflect their lower earnings. In addition to this they also have access to other elements of the package which includes Bounce Back loans, tax deferrals, rental support, mortgage holidays, and other business support grants.