Self-employed & Coronavirus

[flook]

This is not for him, he can claim wages under the job retention scheme. No way is he living on just dividends he will ask be paying a wage to himself and his wife if he’s sensible

Not sure this is correct, directors are not classed as employed for tax purposes, rather they are Office Holders who just happen to pay tax on their salaries PAYE. Neither scheme provides for people in that position as I understand it

 

[flook]

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.

Oh I think they do, anyone else pick up on the early warning of further tax levelling between employed and self employed, sounds like IR35 has just got a baby brother

 

[blueinsa]

Would they not have to resign from their owner/director role as I don't think they can just be furloughed. Even if the company isn't operating you still have some responsibilities which in effect means you are in work?

Can you imagine for a second trying to claim UC as a self employed Director of a ltd company and getting them to see there is no money or income?

No me neither.

 

[lancs blue]

Oh I think they do, anyone else pick up on the early warning of further tax levelling between employed and self employed, sounds like IR35 has just got a baby brother

I think it related to equalising NI rates between employees and self-employed, details to follow no doubt.

Edit : From the Times

However, the chancellor said that given the scale of support from the state it was only fair that the self-employed should contribute more in future. As a result national insurance for the self-employed will rise so it is in line with national insurance for employed workers.

 

[Chris in London]

Oh I think they do, anyone else pick up on the early warning of further tax levelling between employed and self employed, sounds like IR35 has just got a baby brother

I did but I didn’t understand it. If you take minimal PAYE and are paid Divis to make up your earnings, what help have you had? So all the crap about everyone is getting the same help seems like bullshit to me.

 

[flook]

I think it related to equalising NI rates between employees and self-employed, details to follow no doubt.

Edit : From the Times

However, the chancellor said that given the scale of support from the state it was only fair that the self-employed should contribute more in future. As a result national insurance for the self-employed will rise so it is in line with national insurance for employed workers.

That was my first thought tbh, sounds fine in principle until you recognise that there is really no comparison between being employed and being self-employed, and "levelling the playing field" using just 1 criteria is basically bullshit

 

[flook]

it seems reading a forum (dangerous way to accrue knowledge I know) over at IPSE, the ICAEW may be revising their advice such that ltd co directors of 1 man bands can claim the employed protection package insofar as their salaries, but not their dividend income, but it's all conjecture until the detail is published by the treasury

 

[Barcon]

Is there any information on this in the public domain?

Are you in Canada as well mate?

 

[sir baconface]

I did but I didn’t understand it. If you take minimal PAYE and are paid Divis to make up your earnings, what help have you had? So all the crap about everyone is getting the same help seems like bullshit to me.

I imagine the Government’s logic is that you paid yourself mainly in dividends in order to escape paying NIC. Hence only the salary element will be protected.

 

[Coatigan]

Are you in Canada as well mate?

No, did i miss something? sorry, must have got the wrong end of a post