Self-employed & Coronavirus

[kinkyblue]

He can't claim the 80% under the Job Retention Scheme as you can't furlough yourself.

I’ve seen conflicting reports on that so a little unsure, I know it would be difficult as your not supposed to work for the business at all

 

[Didsbury Dave]

he’ll be paying himself about 8 grand and the rest in dividends. He will get 80% of his wages and 0% of the dividends

This is what I do, and my wife too. We own the same business 50/50.

So is that what has been announced for company directors? 80% of the paye and that’s it?

 

[Cheesy]

I’ve seen conflicting reports on that so a little unsure, I know it would be difficult as your not supposed to work for the business at all

That's the issue. It is a condition of the scheme that you cannot do any work at all to be eligible. it is simply impossible to not do anything when your Director of your own Company.

 

[Tuearts right boot]

For those of us VAT registered, where does this stand with the 80% of income. I've not asked my acct yet, thinking there is one live on here....

 

[Cheesy]

This is what I do, and my wife too. We own the same business 50/50.

So is that what has been announced for company directors? 80% of the paye and that’s it?

It's still a slightly grey area tbh. As above, you're not allowed to do any work at all if you want to be eligible for the scheme.

Thinking about it, you may be able to furlough one of you. That could work. I'll do some digging in this.

 

[kaz7]

fairness has nothing to do with it,this is about getting through the next few months. If someone on 49999 needs it, so does someone on 50001. If someone on 50001 doesn’t need it, neither does someone on 49999. It would have been easy to impose a sliding scale or to reclaim it from higher earners via next year’s tax bill.

I am not sure it is that easy,if it was he would have done it no?

 

[Didsbury Dave]

It's still a slightly grey area tbh. As above, you're not allowed to do any work at all if you want to be eligible for the scheme.

Thinking about it, you may be able to furlough one of you. That could work. I'll do some digging in this.

We have basically stopped trading but of course there are always things to be done, chasing invoices, paying suppliers, speaking to customers etc. It’s a bizarre situation because we are not self employed and are ultimately employees of our own business. It’s looking increasingly like we will get nothing, or hardly anything.

 

[Cheesy]

For those of us VAT registered, where does this stand with the 80% of income. I've not asked my acct yet, thinking there is one live on here....

Completely separate mate. Here's some gen for you on the VAT payments deferral. Really important stuff in bold text.

The deferral for VAT payments applies from 20 March 2020 until 30 June 2020. All VAT registered traders are eligible. This will generally mean the deferral of one quarter’s VAT: the payment due on 7 April, 7 May or 7 June 2020 or the monthly payments due on each of these dates. This is an automatic offer and no application is required. Businesses will not need to make a VAT payment during this period.

HMRC has confirmed that businesses will need to cancel their direct debits. Businesses that have a direct debit mandate in place to pay their VAT and wish to defer payment will need to contact their bank to cancel that mandate. This needs to be done before the direct debit is due to be collected. Businesses will also need to remember to reinstate their direct debit mandate once the deferral is over and to make arrangements to pay the accumulated VAT by the end of the 2020/21 tax year.

Taxpayers have until the end of the 2020/21 tax year to pay any liabilities that accumulate during the deferral period. VAT refunds and reclaims will be paid by the government as normal.

Businesses should continue to file their VAT returns by the due date.

 

[Cheesy]

We have basically stopped trading but of course there are always things to be done, chasing invoices, paying suppliers, speaking to customers etc. It’s a bizarre situation because we are not self employed and are ultimately employees of our own business. It’s looking increasingly like we will get nothing, or hardly anything.

Unfortunately, I think this is going to be the case.

Problem is if you stop working completely you lose your business. Simple as that.

If you don't stop working completely you can't furlough therefore can't access the Job Retention Scheme.

It's certainly the case with me and with a lot of my clients.

 

[tolmie's hairdoo]

This is what I do, and my wife too. We own the same business 50/50.

So is that what has been announced for company directors? 80% of the paye and that’s it?

Same for me and my missus. Accountant tonight has told me there is practically nothing for me.

I'm an employee of my own company and it pays my £90 a month PAYE, with a base salary of £1k a month.

As I am still trying to work and keep my business afloat, I cannot furlough myself, not that 80 per cent of £1k a month is any much more than I can still presently earn now.

However, there is not enough money now coming in to supplement my regular income through dividends.

It is a huge grey area, so many people operate like this because of irregular cash flow.