Self-employed & Coronavirus

[birch villa]

Just had email off revenue confirming tonit

The email contradicts what he said, essentially don’t contact hmrc till June and then in June you can apply so realistically August/September at earliest to see any cash during a mandatory shutdown!

So they tell you how much you receive then you have to apply for it ?

 

[Ric]

Can anyone clarify on this? If, as a lone director you earn just over £8k through PAYE, and the rest through dividends, do you literally qualify for nothing as it stands?

Or, at the very least, will you get 80% of the £8k pro-rata? Apologies if I’m missing something, feels like a lot to take in at the moment.

 

[kaz7]

Can anyone clarify on this? If, as a lone director you earn just over £8k through PAYE, and the rest through dividends, do you literally qualify for nothing as it stands?

Or, at the very least, will you get 80% of the £8k pro-rata? Apologies if I’m missing something, feels like a lot to take in at the moment.

Not sure if this helps
Who will miss out?

Those who pay themselves a salary and dividends through their own company are not covered by the scheme.

But they will be covered for their wages by the Coronavirus Job Retention Scheme if they are operating PAYE schemes

https://news.sky.com/story/coronavirus-the-chancellors-lifeline-for-self-employed-explained-11963811

 

[Didsbury Dave]

Can anyone clarify on this? If, as a lone director you earn just over £8k through PAYE, and the rest through dividends, do you literally qualify for nothing as it stands?

Or, at the very least, will you get 80% of the £8k pro-rata? Apologies if I’m missing something, feels like a lot to take in at the moment.

A lot of us are asking this question and nobody knows but the general concensus is that is company directors won’t get anything because you can’t furlough yourself.

 

[UUJblue]

he said a minimum of one years filed accounts mate

maybe as standard but commentators have asked officials and they said all apply and they will review. No promises but 1/2/6 months they may be able to work out an average. Plus this gap to June is to allow self assessments to get in for last year

 

[Didsbury Dave]

Not sure if this helps
Who will miss out?

Those who pay themselves a salary and dividends through their own company are not covered by the scheme.

But they will be covered for their wages by the Coronavirus Job Retention Scheme if they are operating PAYE schemes

https://news.sky.com/story/coronavirus-the-chancellors-lifeline-for-self-employed-explained-11963811

That seems to suggest that we can claim 80% of the salaries we take through PAYE which for most is about £8k (on advice). Not much then.

 

[BlueAnorak]

It's all too complicated and people are falling down the cracks as a result.
People should simply declare their earned income with supporting bank statements and they get 30% of it up to certain level.
This should be accompanied by Mortgage and Rent holidays till it's over.

 

[bluemoon32]

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.

That's fair though, isn't it ?

 

[Coatigan]

Re open..?

I imagine that is why many do. I don't think that is selfish at all, despite some calling it that, it is simply essential. Plus, it isnt like it guarantees earnings either, while this is going on, it will slow down and suffer.

it is going to become very much a choice between take your chance with the virus, or suffer financially. Which is why maybe this 'half-arsed' lockdown is at least somewhat better than the full enforced one everyone is looking for.

The packages are great headlines, and a good bit of positivity. But a huge chunk of the self employed, the sole traders or individual business ltd. company owners arent covered. At all. Similarly, a large chunk of PAYE employees won't he covered either by the other package, as they have no choice whatsoever in it, we can expect a large percentage of unemployment and financial turmoil the longer this goes on.
And if parts of the public can't be trusted to do as asked when things seem ok, what can we expect when they don't? this herd immunity malarkey is going to start looking more and more attractive as a way through the mess (note not to he taken as my belief or support for it as a concept).

 

[Coatigan]

Id have to furlough though. Id have no company to come back to.

That indeed is the risk all companies however big or small face, the situation really is damned if you do/don't grim.