Excluded from financial help

[Sertchgi123]

Over 3 million taxpayers – 10% of the UK workforce, find themselves excluded from financial support, due to Covid restrictions. Two of my family members are affected by this and there's literally nothing on offer.

Rishi Sunak is effectively ignoring and excluding 3 million from any help, yet he bangs on about how he's helping all of us. It makes me sick.

I'm sure there are many others on Mumsnet affected, or know someone who is. What can we do? I've already written to my MP and signed a petition.

Yep I’m one of the 3 million
Bitter doesn’t even come close to it

No one cares.

Why are they excluded?

My DH is also excluded.

Self employed directors of limited companies who pay themselves using dividends.

So has my eldest ds ( he's a chef). Not worked since November and, as self employed, isn't eligible for help. Doesn't pay his rent though 😡

It's awful, and to top it off, some self employed with no loss of earnings, are entitled to thousands of pounds

Also people who have recently gone self-employed, are excluded.

No one is excluded from universal credit unless they have capital over 16k.

@curtaincalll

It's awful, and to top it off, some self employed with no loss of earnings, are entitled to thousands of pounds

This does seem unfair but it was done for speed at the time because it would take time to evaluate the ones that would loose earnings Those newly self employed no figure available to base help on My son actually went self employed a month before lockdown fortunately he has still managed to work

Why pay themselves in dividends and not PAYE?

@Babyroobs

No one is excluded from universal credit unless they have capital over 16k.

If you live with someone as a partner, their income and savings is taken into account.

So yes, millions of people are excluded.

@Coldwinterahead1

Why pay themselves in dividends and not PAYE?

Not everyone has a limited company for starters - sole traders don't have PAYE or dividends.

Freelance paye that weren't Employed on the 28th of February are also excluded. That is those who work on short time freelance contracts.

There are 14 groups that have been unable to access support through the furlough and Self-Employment Income Support Scheme (SEISS) grants, according ExcludedUK. These include those starting new jobs, people who are part PAYE and part self-employed, new parents taking leave, and freelancers earning over £50,000 a year. Others include limited company directors who submit their PAYE once a year.

Freelancers in the arts and hospitality sectors who have been hit by restrictions will get just £450 a month from the state on average over winter, according to figures compiled by Labour, described as “callous and economically wrong” by Ed Miliband.

Some of the millions affected have been left rationing meals, relying on food banks, facing homelessness and suffering with physical and mental health problems.

@Coldwinterahead1

Why pay themselves in dividends and not PAYE?

Because once upon a time it saved on your tax bill unfortunately now it saves very little

I’m freelance PAYE, definitely not earning more than 50k. I get taxed at source just like employees but without any of the benefits. Never had sick pay/holiday pay/maternity pay beyond statutory and now I’ve been excluded from both furlough and seiss. Not entitled to universal credit as my husband works. There seems to be the assumption that it’s all high earning business owners that pay in dividends that have been left out. This year has been horrific and Rishi Sunak seems determined to purposely see families like mine left for dust and I have no idea why. I have 15 years of full tax records as everything I earn is through the paye system so no idea why they claim they can’t tell how much we’ve earned.

The dividends thing is also to do with cash flow and not knowing what you can afford until the end of the year I believe 😊

people who are part PAYE and part self-employed

I am in this category. In the key year, my self-employed income was around £100 less than my PAYE, so I qualify for precisely nothing. In the 2019/20 year it was around two thirds, which meant I lost two thirds of my income overnight.

Fortunately the remaining third is NHS and secure (and I worked a lot of overtime in wave one, and anticipate the same again). So I know I'm lucky compared with many. But it's still sickening.

I started in April 2019, 11 months before covid hit yet I’m entitled to nothing! I have to pay my tax by the end of this month, don’t know how I’m going to do that as I’ve had absolutely no help whatsoever ever and weddings have fallen of the face of the earth!!

It’s so unfair, I’m also excluded as I’ve been self employed for less than 3 yrs. my colleague who has been claiming the government grants for self employed has bought a new kitchen and a hot tub, she has also said she’ll get another grant in the next couple of months and plans to go on a cruise when safe to do so

It's a complete myth that this only affects company directors paying themselves in fat cat dividends and I wish people without an adequate understanding of such a pressing issue would not perpetuate it.

OP, I've a feeling this will be taken up freshly in parliament on Wednesday. Keir Starmer, Annaliese Dodds and Ed Davey have all spoken up for the Excluded in recent days. Our family are very badly affected by it too and our (hard right Tory) MP couldn't give a stuff (and I think is probably too thick to understand the complexities of it all anyway).

I think all we can keep doing meantime is to make as much noise about it on social media as possible, and check out the ideas/info on the ExcludedUK website if you haven't already.

I was on zero hours PAYE contract that finished before lockdown. Never had a limited company. Full PAYE employment and tax for nearly 30 years.

Received JSA for 6 months that stopped in September, after that - nothing.

I also have written to Rishi and Boris and plan to do it again but what else can we do??

I can't see why they can't extend basic JSA till end of lockdown

@ConquestEmpireHungerPlague

It's a complete myth that this only affects company directors paying themselves in fat cat dividends and I wish people without an adequate understanding of such a pressing issue would not perpetuate it.

OP, I've a feeling this will be taken up freshly in parliament on Wednesday. Keir Starmer, Annaliese Dodds and Ed Davey have all spoken up for the Excluded in recent days. Our family are very badly affected by it too and our (hard right Tory) MP couldn't give a stuff (and I think is probably too thick to understand the complexities of it all anyway).

I think all we can keep doing meantime is to make as much noise about it on social media as possible, and check out the ideas/info on the ExcludedUK website if you haven't already.

I hope you’re right and it is raised in parliament. James 0’Brian was talking about it on LBC this morning and the disgrace of a human being the chancellor is.

Rishi Sunak admitted it was a deliberate policy decision.

If it was about speed, he has had plenty of time to rectify it but has chosen not to.