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MPs demand answers over lack of Covid support for self-employed

Too many excluded from government’s furlough and other support schemes, committee says
Parliament’s spending watchdog has called on the government to explain and fix issues with the tax system that have denied whole groups of freelancers and self-employed workers financial support during the coronavirus pandemic.
The powerful cross-party public accounts committee (PAC) said some of the workforce had “not had a penny” from the government’s multibillion-pound support schemes despite repeat lockdowns blocking many from work, while some large companies had received taxpayer support and paid dividends to shareholders and high salaries to executives.
It said “quirks in the tax system” and problems with HM Revenue and Customs’ computer systems had allowed people to fall through the cracks in the support schemes and made it more difficult for the tax authority to identify fraud.
Campaigners have warned that about 3 million taxpayers – 10% of the UK workforce – have fallen through gaps in the support system and have received no help since the start of the pandemic almost a year ago, with self-employed workers and freelancers among the most likely to be excluded.
Demanding answers from officials, the group of MPs said HMRC should, within six weeks, publish an explanation of why it cannot help those freelancers and other groups that have been excluded from receiving any support, and set out steps it can take to overcome those obstacles.
The report comes amid growing pressure on the chancellor, Rishi Sunak, to refresh the government’s emergency support schemes as the UK economy edges closer to a double-dip recession during the second wave of the pandemic.
The PAC said it was concerned that some self-employed taxpayers may have moved on to company payrolls because of the government’s IR 35 tax rules – aimed at stopping tax dodging by disguising employment through so-called personal service companies – but had not been classed as employed at the right time to be eligible for emergency support.
It also said it was common in some sectors – such as TV, film and the wider creative industries – for freelancers to work on a series of short-term employment contracts with gaps in between, which could mean they miss-out on financial support.
The government has spent more than £46bn subsidising the wages of almost 10m jobs since the pandemic began through the furlough scheme, which has been extended until the end of April. More than 2m claims worth more than £18bn have been paid out through the similar self-employed income support scheme.
Warning that people were still falling through the cracks, the PAC report said that HMRC was coming under strain as its it attempted to upgrade its IT systems, handle increased demand during the pandemic, and adapt to the UK’s post-Brexit customs regime.
The report warned the tax authority it was spending too much time patching-up out-of-date and potentially risky computer systems rather than modernising them, with these old systems making it tougher for HMRC to provide reliable and timely data.
Meg Hillier, the chair of the PAC, said: “As public spending balloons to unprecedented levels in response to the pandemic, out-of-date tax systems are one of the barriers to getting help to a significant number of struggling taxpayers who should be entitled to support. And the system is going to struggle, and in many cases fail, to capture or deal with those wrongly claiming it.”
source: Richard Partington
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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