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To take the grant for self employed people?(64 Posts)
I'm self employed part time and don't earn a huge amount. My earnings were affected a little the past couple of months due to the virus but by a few hundred rather than thousands.
The grant is based on average earnings over the past three years. I earned a lot more in 16/17 and 17/18 than I did in the last tax year. So, by my reckoning, my grant could be around £3-4k which is quite a lot more than I've actually lost out on. So I feel almost a bit dishonest about accepting it. But at the same time, I don't know how my earnings could be affected in the next few months.
Would you take the grant or not?
Yes, keep some aside, if your earnings aren’t affected in the next few months then donate some of the money to a charity helping those that are affected.
One of the criteria is that your business has been adversely affected by the Coronavirus. Only you know what “a little” means. But be aware that it is likely that compliance checks may be carried out further down the line and you may be asked to evidence these adverse effects.
Take it, be sensible with it, you might need it in future
Sorry, pressed send too soon!
I wouldn’t feel guilt re the averaging, no - that’s the system and some people will do well out of it and some people less well, that’s life.
We are in a very similar position. We have been affected but not hugely...*yet*.
The grant is a lot more than we have lost so far however, we are claiming it because we just don't know what it's going to look like a bit further down the line.
At the end of the day, business has slowed, not as fast as we were initially concerned about but it has and if it carries on or speeds up then we may struggle down the line if we don't accept the help now and put it to the side.
You're only entitled to it if you've been adversely affected. Have you?
I'm sure they'll check in the future.
Take it. It's taxable/NIable anyway, so HMRC will get 29% of it back. You don't know how long Covid will last for nor how badly your business will be affected. You don't know how much tax/NIC will rise for the s/e in future to pay for the hundreds of billions it's costing the country. Take it, put it in a savings account, and once Covid is over and you know what the new "normal" looks like, if you still feel bad about it, donate it to charity!
I'm in a similar boat and agree with pp. While you may not "need" or feel eligible for it now, this situation is going to go on for some time I'm afraid, and there's no telling that you/I could have been offered a really interesting contract if covid hadn't come along. So, I'd take it, but save it.
I am in a very similar position. I've decided to take it and where possible spend it with other local and small businesses.
There won't be aid available in July and August when I know my earnings will be significantly down so it will balance out that.
Thanks all. Think I might do what a lot of you say and hold on to it.
The grant that you will receive will then be part of your income for this tax year 2020/2021.
If you feel you want to then give some to your local food bank or another local charity that’s near to your heart
DH is in the opposite position, he made less in 16/17 and 17/18. The government has no issues given us considerably less then he lost, so I don't think you should feel guilty taking what your entitled to.
As pp said, if you don't need it over the coming months I'm sure plenty of food banks will be glad of it.
We have already been told that tax rates for self employed people are very likely to go up. So personally I'd take the money for that purpose. Also there is a long way to go in the tax year yet, and we are just starting what is likely to be a very severe recession, so depending on what you do, you may find that your business is affected much more severely in the future when the same sort of help my not be available.
Very please just been told I will get £6000 in a week's time.
I have lost all my summer income.
Take it. This may go on for a while and if there’s another grant it will likely be less than this time and you might need it by then. We will all be paying for this pandemic through increase taxes for years to come so I’d take the money they’re offering you
Take it. You don't know what the future holds.
Take it, the economic impacts of this have hardly started.
Only take the claim if the following apply - they can take the money back if incorrectly claimed....
"You must read the following before making a claim
After checking the details of your previously submitted Self Assessment tax returns, you are eligible for this grant.
The grant does not need to be repaid, but it is subject to Income Tax and self-employed National Insurance contributions. You will need to report the grant on your Self Assessment tax return.
Before continuing, you need to confirm:
you traded in the tax year 2019 to 2020
you intend to continue to trade in the tax year 2020 to 2021
your business has been adversely affected by coronavirus
If you are non-resident or chose the remittance basis
You also need to confirm that your UK trading profits are at least equal to your other worldwide income for the relevant tax years. You must read the guidance (opens in a new window or tab) to make sure you understand and that you are eligible.
After you claim
HMRC will check your claim and may withhold or recover payment if your claim:
is not made in accordance with HMRC’s published guidance
contains or is based on inaccurate information
is paid in error
is fraudulent or abusive or not made for the purpose described above
By continuing into the claim service, you are confirming that you have read the relevant guidance and you meet any requirements specific to your circumstances."
DH can apply tomorrow. He's a self employed handyman who hasn't been able to work since before lockdown. I don't know how he would be able to prove his business has been affected though as he doesn't often book ahead so couldn't prove he's lost work. He generally gets a call and does the job within a couple of weeks.
Definitely claim it.
If you don’t need it in the next couple of years, make a few charity donations to offset your guilt (and claim gift aid on ) x
"I don't know how he would be able to prove his business has been affected though as he doesn't often book ahead so couldn't prove he's lost work. He generally gets a call and does the job within a couple of weeks."
He'll be able to show that his income for this year is less than previous years, or the jobs he did were more in previous years.
DDd applied and because 18/19 was her first year of training she is eligible for a whole £53!
She is trying to work out how best to spend it
On the upside she has developed entirely new ways of working because of Covid but in her field jobs will be few and far between for many months to come and all the momentum she had built up has been lost
As a self employed person you need money in your account - especially is there is a future lockdown where such offers may not be available. You have paid tax for many years - please do not feel guilty for protecting yourself. Being self employed is very precarious.
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