Talk

Advanced search

Self Employed & Not Eligible for any help. What’s everyone else doing?

(25 Posts)
tigerbear Fri 24-Apr-20 21:48:10

I mean, if all income is totally gone, how are you coping/what are you doing?

Both DP and I are self employed.
I’m not entitled to any government help at all, and we’re awaiting news from DP accountant to see if he’s eligible.

What the fuck are we meant to do?
My work is in recruitment, so not looking likely to pick up for a long, long time.
I’m owed money for work already done, but one company got rid of my candidate within his probation as they realised they couldn’t really afford him, so that’s £30k fee gone.
Another company who owes money is 5 months overdue anyway, and now paying me in £1.5k instalments, over the course of the next few months (if they don’t go bust that is)

My business partner and I have approx another 2 months of (much reduced) salary money in the bank, after which we’ll need to start using our savings that are put aside for tax, VAT etc

What’s everyone doing if you’re in similar situation?

OP’s posts: |
lamplamplamo Fri 24-Apr-20 23:08:03

My sister is applying for universal credit and getting money off my parents. Not ideal as they can't afford it.

tigerbear Fri 24-Apr-20 23:18:25

Just looked at the government website re U.C. Clear as mud.

OP’s posts: |
tigerbear Sat 25-Apr-20 11:51:03

.

OP’s posts: |
BakedCam Sat 25-Apr-20 11:58:14

Have you applied for VAT relief from HMRC, OP?

I'd consider putting in an application for UC. It might look confusing but once you go through it, it will make sense.

tigerbear Sat 25-Apr-20 12:03:17

@Bakedcam not yet, will look into it.

Also thinking of applying for the mortgage holiday, but am concerned it would affect our ability to get another mortgage (we’d been in process of trying to buy somewhere new before all this kicked off).

OP’s posts: |
BakedCam Sat 25-Apr-20 12:11:42

I'd check with your lender on mortgage holiday and how they will report to CRAs.

It is shit, I know it is for the small businesses that aren't able to access support and are diverted to the welfare system.

Are you a LTD entity?

tonglong Sat 25-Apr-20 12:23:58

You have 2 months salary in the business account and you have savings.

Sounds pretty good.

Some of us will be in debt after 1 month of no pay.

QOFE Sat 25-Apr-20 12:28:47

Why aren't you eligible?

doadeer Sat 25-Apr-20 12:29:41

Are you a Ltd company? What makes you not eligible?

Caramel78 Sat 25-Apr-20 12:34:40

Do you have tax money you would be using for July you can live off for a month or two when you can hopefully go back to work and pay your tax bill in Jan instead?

sanealaddin Sat 25-Apr-20 12:41:16

Why are you not eligible? I'm currently living off savings and the money put aside to pay my tax in July while I wait to hear from HMRC about the grant based on 3 years tax return submission. Hopefully that will be in May.

Wheresthebiffer2 Sat 25-Apr-20 12:46:31

We're not eligible because only been self employed since January. (you need 2+yrs of profitable accounts to be eligible).

Can't claim UC because have more than 16k in savings (recently got a family inheritance).

Can't claim mortgage holiday either because the "business" involved buying a commercial property to rent out - and there's no mortgage holiday unless it is residential. Our house mortgage is paid off, but house was put as security for business loan :-(

So basically, no income, no safety net, no help, and living off savings and planting veg in the garden.

Rosehip10 Sat 25-Apr-20 12:51:15

So you have saving over 16k - hence you are expected to live on these (and are doing do) It's the same for every potential applicant for UC.

Diyhaircutgonewrong Sat 25-Apr-20 12:52:39

can't claim UC because have more than 16k in savings (recently got a family inheritance)

so basically, no income, no safety net, no help

but you have in excess of 16k sitting in your bank account. Very unreasonable to claim you have no safety net. You are sitting on loads of money.

tigerbear Sat 25-Apr-20 13:42:30

To the people who asked, it’s a Ltd company. We’re not eligible for help as we don’t have a premises (so don’t get the £10k grant), and because profits were over £50k

We haven’t seen any of that profit though - it’s put aside for the tax and VAT.

OP’s posts: |
FramptonRose Sat 25-Apr-20 13:56:10

My husband has a Limited Company and we were really worried as the Government seemed to leave Directors of Limited Companies as one of the last on the list when providing information about financial help.
I'll just bullet point what we are doing, see of anything helps:

DH takes minimum salary as a Director (remaining money he takes is profit -which you do not get any assistance with) out accountant has sent through the application for him to be furloughed. Don't get me wrong it isn't great as its 80% of the small wage he put through but it's something.

All VAT and tax payments have been out back to Spring 2021, which we have done, as we will need to get back on top of cashflow once the restrictions start to ease.

Mortgage holiday - no choice there, we had to suck it up and do it.

Contacted suppliers and explained we would have to pay them off slowly, including the accountant who we normally pay a monthly fee too. Any direct debits we have, we went through, cancelled anything we wouldn't currently need.

I work for local government, not great money as I work around my children but I know I am fortunate to be able to work from home and get a wage.

We didn't have much in savings after a problem with DHs business last year but what we did have we are now using to top us off which is horrible but I figure we are all going to be in the same boat when this is over. It sucks but it is what it is, I suppose.

Other than that I would say apply for Universal Credit if you need to, even if it takes ages to come in, at least it is a bit of additional money to keep you ticking over.

FramptonRose Sat 25-Apr-20 13:57:47

Paragraph fail there, glad I spent ages, putting it into paragraphs and bullet pointing it, only for it not to work sad

Jellycatspyjamas Sat 25-Apr-20 14:01:25

Your whole profit of over £50k can’t be consumed by your tax bill - you need a better accountant if that’s the case. Also what have you been living on beforehand this, have you been drawing a salary - in which case you’d be eligible for one of the schemes available or were you drawing dividends in which case you’d have access to support through self assessment?

sanealaddin Sat 25-Apr-20 14:30:02

That doesn't make sense - tax and VAT can only be a percentage of your profit, not the total profit?

I do sympathise, you are in an unfortunate situation compared to many self employed people. My business won't recover this year. It's tough.

doadeer Sat 25-Apr-20 14:31:58

Can't you claim for your salary...? It won't be a great deal if you only claim £750 or whatever it is and take the rest in dividends but it's still some money.

£50k in corporation tax and VAT sounds huge - what is your turnover?!

tigerbear Sat 25-Apr-20 15:16:00

Thanks for the suggestions everyone.
@FramptonRose your post was perfectly readable, thanks.

We have been taking dividends, not PAYE
The savings of £36k is to pay our personal tax bills too, not just the corp tax and VAT.

OP’s posts: |
Babyroobs Sat 25-Apr-20 15:19:08

I think in relation to claiming Uc and the 16k limit, if you have set savings aside for the purpose of paying tax it can be disregarded.

Jellycatspyjamas Sat 25-Apr-20 16:33:14

You said your profits were over £50k and that you hadn’t seen any of the profit, but you did in the form of dividend and your personal tax liability. Surely the £36k belongs to the business and isn’t held in personal savings - why would you hold personal saving for VAT and Corp tax?

In any event you can either defer your tax payment and use the money to live on or pay your tax, reduce your savings to under £16k and claim UC.

Classiccar Sat 25-Apr-20 21:35:46

Babyroobs is right - if you can prove your savings are set aside for tax ie you have no other savings, you’ll qualify.

www.moneysavingexpert.com/#coronavirus

Join the discussion

Registering is free, quick, and means you can join in the discussion, watch threads, get discounts, win prizes and lots more.

Get started »