I am whacked, again, tonight so I have little energy left to cover the support for the self-employed tonight.
The more definitive eligibility details of the scheme for self-employed is here: https://www.businesssupport.gov.uk/self-employment-income-support-scheme/
But note also a give-away para in a news story at https://www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals It says:
Those who pay themselves a salary and dividends through their own company are not covered by the scheme (self employed scheme) but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.
There will be a few red faces and disgruntled director client when this latter news gets out.
And I also think some who have gone from £50,000 to zero will also feel the same way. I am a little surprised that bar was set so low.
But overall, the scheme is fair with one massive concern right now, and that is that the delay in payment will be a massive problem for some.
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So joint directors of a small limited company, who have been paying themselves a regular wage via PAYE for the last 2-tax years (since we started trading) have now been confirmed as employees rather than self-employed?
Thanks in advance for advice.
Please check the rules tonight
Hi Richard
Thank you for replying.
Hi,
I am currently residing in my workplace due to the coronavirus. I work with children in a residential unit and they require 24 hour care. I will be receiving pay through the whole 2 weeks that I am here can you advise me on what tax I will pay? will I pay 40% rate because of earnings going up.
Sorry
Please ask your employer
Take it easy proff – your work seems to have borne some fruit.
It is at first sight not edible yet – supposedly in 3 months! I wish i could get bananas that took that long instead of going from green to edible in days and beyond use within a week of that.
80% is a magicians flash bang that makes something disappear in front of your eyes.
How exactly is a self employed person with no savings, overdraft or creditworthiness to get a loan to cover the shortfall between UC and their monthly expenses – such as say a leased work van, their bills, their creditors, their housing and their food?
The criteria of self employed with tax returns for 3 years is a good start but disregards all else who became self employed from 3 years ago to 3 weeks ago!
This is not equality with the employed.
Yesterday in the house just before adjournment the news made it to the Opposition couple of dozen that Sunak was going to make an announcement to the press today, when ministers are clearly oblidged to make such in the House first.
For a moment there was panic in the useless new Speaker and Rees Mogg that they may be forced to delay the closure to today so that opposition ministers could question the Chancellor about his announcement. Of course the opposition failed to have a vote against that – it would have been probably impossible for Jacob & co to get enough tories back to the House within 10 mins to stop a loss.
Hence we have got this – i hope your collaborators get on the case and pile on more pressure tomorrow and at the weekend.
Can’t let them weasel out this with yet another adjourned parliament ( at a guess they have probably had the fewest sutting days in the last 12 months).
But yes health first and it took me best part of 3 or so weeks to get back to full fitness – the effects seem to linger, which haven’t yet been figured or revealed.
Knackered tonight
Going to watch some mindless television
Good for you.
That paper you co-wrote on tax you gave us link for is excellent BTW. Thanks once again.
Richard, sorry to hear you are still suffering but well done in getting out a quick response. You may wish to amend your first sentence by the way. Dungroanin, you appear to be mistaken about who qualifies. The Chancellor specifically said in his press conference yesterday that it is only those who started self employment from 6 April 2019 who will not qualify. Anyone who is self employed who has submitted a tax return for the year to 5 April 2019 qualifies. He has been extra nice to late filers who missed the 31 Jan 2020 deadline. He has given them an extra month to file and used that as an excuse to delay payment for all who qualify to June.
HMRC will know for most people exactly how much they will likely need to pay out and will have their bank details. For those people they should pay out as soon as the application form is received. The Chancellor will hopefully come under extreme pressure to pay out sooner than June.
I really was whacked!
Did you note that Sunak also commented that since everyone wanted govt protection it seemed reasonable that everyone should make the same contribution. Did you write that, Richard?
No….
And I am not sure what it means
The self-employed are getting equal emergency treatment but after this is over will they?
Take care of yourself Richard, you (and we) don’t want (you) to get a post viral syndrome / chronic fatigue syndrome.
I am going to have a quite weekend – starting very soon….
There will be many directors of small businesses where income has tanked, so they are definitely cut out of the scheme; many small companies will be stressed to extinction.
I’m familiar with a small letting agency company, well liked by both their tenants and landlords, who will likely suffer badly. It’s hard to judge how bad it will get, but the problematic housing benefit system and delays in other support for tenants, and for companies, will take its toll. There are many other small companies which normally provide vital services to the rented sector and it looks like they, and hence their workers in the longer term, will also suffer. Property safety and maintenance is likely to be degraded if the epidemic continues well beyond 3 months, as seems very likely.
As you’ve said elsewhere, landlords will keep their assets (in the main), but this will be a disaster for a lot of good letting agents – despite what we have been shown on Channel 5, the good ones are in the majority in my opinion.
Pretty much no fresh start makes a profit for the first 3 years, so that’s 3 years worth of newly self employed down the toilet. Pathetic offering
Will you be applying for support under this scheme?
No
I do not qualify
And I am fortunate to have what I think is ongoing income for the time being
As for loans people who have no cash, can get a “loan” from the govt to cover the UC benefits waiting time. The problem is they have to pay it back at a massive rate once UC kicks in. This will be a big problem for the Self employed when they apply for UC if and when they get the loan by time UC comes and if it comes on time. The govt will claw back money from UC playments, if not from them but the new scheme that starts in june.
What a mess, i shouted at the tv this morning, its damn stupid and needless, but the tories never change their spots and they hate giving money away free.
A lot of these people who cannot work and i talk in millions here will find out the hard way how nasty the DWP and Universal credit system is.
UNFAIR
Employee current earnings have significantly increased over the last 3 years. Those employees furloughed are to get 80% of current earnings
Basing Self Employed earnings on average historical earnings means they ARE NOT being treated fairly.
His proposal is to give self employed a Taxable amount equal to 80% of an average of the self employed earnings over 3 years to their accounting year ended during the year ended 5 April 2019. That is an average of earnings that is at least 4 years out of date and IS NOT compatible.
Contact your MP pointing this out. He must do better.
Sorry – but it’s as good as could be
And I think it is as fair as possible
Start thinking big for a change
My friend runs as small business ie karate club and he was told no help coming as he cannot get the government loans. he runs the club full time as a job and still no help. Members are chipping in for the time being but when their cash runs out and it surely will do. He cannot get any help whatsoever. He is a tory though things the government is doing all it can. i tried to tell him this was not so but of course he refuses to change his mind as his life collapses around him.
If he has premises he should qualify for the £10k grant, and as a leisure activity quite possibly the higher £25k one. Scotland may be different but when I was doing the claim form for our office I did notice that sports clubs (e.g. a bowling club) were on the list for the £25k grant.