Self-employed & Coronavirus

[Chris in London]

Then he’s daft as he can earn about 12500 tax free and his Mrs if he ‘employed ‘ her

not really. NI threshold is about 8 and a half k.

Also he can’t pay his wife tax free if she earns elsewhere.

 

[Chris in London]

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?

think so. You may both be below the threshold to claim UC.

I think they don’t know how many people they have just shat on.

 

[Didsbury Dave]

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.

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.

Not looking good for any of us. We can furlough ourselves because we have good cash reserves. We’ve basically had to stop because our clients have mainly shut up shop.

Good luck to you both and anyone else struggling. I know I am not as “in need” as many in the country.

 

[Chris in London]

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

nothing hard about it, they just impose the same sliding scale as when you are approaching (say) the threshold for UC.

 

[Tuearts right boot]

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.

Cheers...
Interesting but my accountant told me all this a few days ago plus some other info regarding business rate rebate but I forgot to ask her whether the 80% was subject to or included VAT. Being VAT registered and this being a business income I'm wondering therefore if VAT should be charged on this amount or is already included......Wont be defering our usual VAT payment as we have that in a separate account and dont particularly want it hanging over my head for 12 months so will be paying as usual.

 

[Chris in London]

Cheers...
Interesting but my accountant told me all this a few days ago plus some other info regarding business rate rebate but I forgot to ask her whether the 80% was subject to or included VAT. Being VAT registered and this being a business income I'm wondering therefore if VAT should be charged on this amount or is already included......Wont be defering our usual VAT payment as we have that in a separate account and dont particularly want it hanging over my head for 12 months so will be paying as usual.

no, it’s calculated from profits, not turnover. Vat and expenses are completely separate

 

[tolmie's hairdoo]

Not looking good for any of us. We can furlough ourselves because we have good cash reserves. We’ve basically had to stop because our clients have mainly shut up shop.

Good luck to you both and anyone else struggling. I know I am not as “in need” as many in the country.

Thanks pal, and sorry to hear of your own situation.

I will still scrimp, grind and earn something, relying on my own cash reserves up until a point.

Not the point though is it, you've earned that cash you've saved and paid tax on it already.

This virus doesn't discriminate but it seems the government are at present.

Best of luck to everyone in this shit creek without a paddle.

 

[Cheesy]

Cheers...
Interesting but my accountant told me all this a few days ago plus some other info regarding business rate rebate but I forgot to ask her whether the 80% was subject to or included VAT. Being VAT registered and this being a business income I'm wondering therefore if VAT should be charged on this amount or is already included......Wont be defering our usual VAT payment as we have that in a separate account and dont particularly want it hanging over my head for 12 months so will be paying as usual.

The 80% in question is the Job Retention Scheme in which furloughed employees will get that much of their salary (ie, those on PAYE) and now, the self-employed based on previous SA tax returns, paid by the Government.

It's totally separate to the VAT stuff :)

 

[Tuearts right boot]

no, it’s calculated from profits, not turnover. Vat and expenses are completely separate

Cheers..

 

[Tuearts right boot]

The 80% in question is the Job Retention Scheme in which furloughed employees will get that much of their salary (ie, those on PAYE) and now, the self-employed based on previous SA tax returns paid by the Government.

It's totally separate to the VAT stuff :)

Again, cheers.