Freelancers face higher tax rates for taking support grants

The Sunday Telegraph highlights an accounts filing quirk which means freelancers who claimed support grants amid the pandemic have been dragged into paying the 40% higher-rate tax, saying they face paying twice as much tax as others who make the same amount of money as a result of settling their end of year accounts 30 days later. Freelancers must choose when their financial year ends, with this determining when the tax needs to be paid in regards to self assessment. Those who end their financial year early in the tax year face paying higher rates, as they are being charged on earnings that arose before the pandemic on top of the grants. Someone filing a month later would be assessed in the following tax year, meaning their coronavirus losses would be taken into account.

 

The Sunday Telegraph

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