Self-employed & Coronavirus

Discussion in 'Off Topic' started by Ric, 22 Mar 2020.

  1. marcus

    marcus

    Joined:
    9 Feb 2006
    Messages:
    2,225
    Location:
    chedle en le hum
    I dont pay myself any dividends, just a salary. Which is great, but my understanding through this job retention scheme is that i would gave to furlough the company. Which if i did that id have no company to come back to
     
  2. Cheesy

    Cheesy

    Joined:
    29 Jan 2007
    Messages:
    15,796
    Unfortunately, that's correct.

    A strict condition of furloughing is that you don't do any work at all. Which is impossible if you still want a business.
     
  3. marcus

    marcus

    Joined:
    9 Feb 2006
    Messages:
    2,225
    Location:
    chedle en le hum
    A large percentage of my work is inside houses, carpet and floor cleaning/care. So thats a no.

    I also do outside work but decided there was a lot of negative feed back about people going about there business. Also, is it a good idea to be out n about everyday? Am i helping stop the spread of this virus ? No.

    So i closed up believing help would be on its way
     
    stonerblue likes this.

    ADVERTISEMENT

  4. sir baconface

    sir baconface

    Joined:
    20 May 2012
    Messages:
    15,866
    Location:
    Not in my lifetime.
    Me too. The IR35 reforms (now deferred) were to affect loads of so-called service companies. Many are IT contractors and other types of contractor or consultant. These are the people who seem to be overlooked by both the employed and self-employed measures.

    If there are so few of them, why were such they a big deal to HMRC a month ago?

    Maybe it’s a case of the government applying its own (ill-targeted) version of karma.

    I’ve no particular axe to grind; more an interested observer.
     
  5. sir baconface

    sir baconface

    Joined:
    20 May 2012
    Messages:
    15,866
    Location:
    Not in my lifetime.
    To the best of my knowledge it would be 80% of £8k pro rata if able to furlough yourself (still not certain); otherwise diddly squat.

    Depending on industry sector, VAT status, etc, your company might possibly gain from other grants, reliefs or deferrals.
     
    Cheesy likes this.
  6. sir baconface

    sir baconface

    Joined:
    20 May 2012
    Messages:
    15,866
    Location:
    Not in my lifetime.
    Yes, in terms of the dividend element.

    No overall, if the furlough restrictions turn out to rule out protection of even the salary element. If so, this group would arguably be disadvantaged against almost all others.
     
    bluemoon32 likes this.
  7. Chris in London

    Chris in London

    Joined:
    21 Sep 2009
    Messages:
    9,954
    No, the government’s logic was that we’re all in this together.


    Even if you took money out of your company in the most legal and tax efficient manner.
     
  8. hello

    hello

    Joined:
    30 Jun 2009
    Messages:
    2,880
    Doesn’t look like it, they simply open a means to apply in June, you can also lay yourself off via job retention scheme and come back to a non existent job when the company folds with its sole director prohibited from working.

    full text from Jim Harra


    Dear customer,

    The Chancellor, this evening, announced a new Self-employment Income Support Scheme to support self-employed people who have been adversely affected by COVID-19.

    GOV‌.UK has further details about who is eligible for the scheme and how it will work.

    Self-employed people do not need to get in touch with HMRC as the scheme isn’t yet open for applications. HMRC will contact eligible customers by the beginning of June, inviting them to apply.

    Unfortunately, we are aware of an increase in scam emails, calls and texts. If someone gets in touch claiming to be from HMRC, saying that financial help can be claimed or that a tax refund is owed, and asks you to click on a link or to give information such as your name, credit card or bank details, please do not respond.

    HMRC will never contact you out of the blue to ask for these details.

    The government has also introduced the following help for the self-employed:

    We will continue to share the most up to date information directly with you as it becomes available.

    Yours sincerely

    [​IMG]
    Jim Harra

    First Permanent Secretary and Chief Executive – HMRC
     
  9. flook

    flook

    Joined:
    17 Jan 2009
    Messages:
    2,554
    Location:
    dreamland
    Clever words by Sunak, directors are not self employed so he's correct in what he says

    This is the best you can hope for, but it's still shrouded in mystery. I keep saying it, but there will be no certainty until the treasury confirms the details. I'm stopping thinking about this until my accountant tells me what I can do.........probably

    I don't believe this to be correct, you will be able to (as I understand it) still do what needs be done (ie chasing creditors, paying bills, seeking work etc) whilst furloughed, but you cannot do any fee earning work. Again though, the devil will be in the detail when it emerges
     
  10. hello

    hello

    Joined:
    30 Jun 2009
    Messages:
    2,880
    maybe I am a cynical twat but I reckon ir35 deferment was for their benefit not the consultants. If people switched to ir35 in April wouldn’t they be able to furlough the contracts in event of shutdown/suspension from next week? Or is IR35 purely about additional tax revenue and no extra assurances at all? (I’ve not looked at the details of ir35 for a few years as my public bodies have said outside)
     

Share This Page