Can you financially survive another lockdown?

[umpteennamechanges]

I've put this in chat rather than Coronavirus as I don't want to get into whether another lockdown is right or wrong...

If you are self-employed can you financially survive a January lockdown?

What about a lockdown in Jan and then another lockdown after a few weeks of relaxation?

We have seen an email from Jeremy Hunt saying our area (Hants) will go into Tier 4 from 30th December (I would be expecting this now anyway irrespective of the email).

We've already used the maximum mortgage holiday allowed.

We've used all of our savings.

We've cut back to the bone.

We've taken in a lodger.

We've set up two new businesses.

We are also doing temp work.

But if we have to close our gym again we won't be able to make our mortgage payment next month.

And we're out of options now really, I can't think of much else we can do.

Is anyone else the same?

If you’re a fitness instructor how about broaching into zoom lifestyle coaching? Lord knows there’s a lot of people who need to lose weight, and I’m sure there’s a market for someone to pay to have a regular call with someone once a week or something to keep them on track. I did it about a decade ago when I needed to drop a stone, it was £10 per week for 6 weeks which included a booklet of healthy ideas/exercise ideas/foods to really avoid etc, then 2 emails a week saying ‘hope it’s going ok, need any help’ abs then a 10 min phone call each week too. Not mega bucks but might keep the wolf from the door?

I'm Incredibly fortunate to be able to say that yes we would, both me and DH are able to work from home and our industries haven't been significantly negatively impacted by coronavirus and work was busier without being classed as essential.

However working full time from home while homeschooling a 6 year old who cannot just be left on a laptop to work, who has to be shown how to do everything nearly broke us March to July. We were having to start work at 4/5am do a few hours, alternating so someone was free to support DD and we were working up to midnight. Somewhat terrified that it's looking like schools may close or reduce during January and we'll have to do it all again.

I'm self-employed but I'm in the US, and given that the government just passed a second Covid relief bill I think I'd be OK. We're not in lockdown right now but it's definitely on the cards.

Yes, I work for a company in the FMCG industry and we have luckily weathered the storm well so far, as the demand for supermarket products has gone up. I have been WFH since March.

I know I am very lucky and thank my lucky stars for having changed job last January (went from travel industry to FMCG).

@Caramel81

I could financially survive one or two more lockdowns (if I was very careful) but if all of this goes on past the spring then I’ll be really scuppered without financial assistance from the government. Are you able to pay your tax bill in Jan? I can if there isn’t another lockdown. If there is then I’ll struggle to pay it as might need some of that money to live on as have used up my savings. I also applied for a part time care position and also a job in a local takeaway but didn’t get them.

No.

We can't pay our tax bill.

I'm hoping HMRC will be a bit more understanding than usual but if they play hardball then that will be us bankrupt

@Bearkuma

I can't. Just did another 2 month mortgage holiday in anticipation, but that will take me to the maximum I can do.

What do you do Bear?

@PattyPan

Could you remortgage to extend the term and therefore have lower monthly payments?

We only just remortgaged so this doesn't seem to be an option.

@RememberSelfCompassion

At least with another lockdown they might bump the seiss payments up again (they were threatening 20% for the last 3 months...)

We don't qualify

@cheesecrackersandcorona

We can as we're NHS. But we know how lucky we are and how shit it is for others. We have close friends who have lost jobs in IT and hospitality.

Can I ask OP where the email came from RE moving into tier 4? From government to business owners?

Just had a google as I'm in Hampshire but can't see anything relevant (except cases rising exponentially)

It was a personal email from Jeremy Hunt to a specific individual (who then forwarded to my friend who took a screenshot and sent it to me!)

@mindutopia

I would be thinking about what you can do to diversify and bring in new sources of income. You said you've started 2 new businesses, but are they making money? Dh has a business (I'm lucky to be employed with a good salary, so we have a fall back too), but his business primarily sells to restaurants, private chefs, caterers. None of whom have been very busy this year. He's shifted his marketing approach to private clients and never been busier. Can you start up work with personal training, outdoor boot camps, online classes? My yoga teacher has been teaching remotely by Zoom all this time.

We've done all of this...

DH's new business is still in personal training (we converted our garage to a 121 training studio with a small bounce back loan). It's been doing okay bearing in mind it opened 8 weeks ago...2 weeks after opening we had the 4 week lockdown. Now been open again for 3 weeks and will have to close again. So all the income from that stops.

My business has done okay but very inconsistent. So in the last six months I have made £5k a couple of months but then nothing for four months.

I'm already doing a temp job. DH sees clients Mon - Sat and then does a temp job on Sunday.

He has tried all the usual avenues - boot camps, etc and zero interest.

We have a big tax bill coming up, high outgoings as I was a high earner before all of this.

We've sold some of our possessions but will now look at what else we can sell.

@Hollyhead

If you’re a fitness instructor how about broaching into zoom lifestyle coaching? Lord knows there’s a lot of people who need to lose weight, and I’m sure there’s a market for someone to pay to have a regular call with someone once a week or something to keep them on track. I did it about a decade ago when I needed to drop a stone, it was £10 per week for 6 weeks which included a booklet of healthy ideas/exercise ideas/foods to really avoid etc, then 2 emails a week saying ‘hope it’s going ok, need any help’ abs then a 10 min phone call each week too. Not mega bucks but might keep the wolf from the door?

I'm not a personal trainer - DH is.

I've already started a coaching business over lockdown (along with every other person it feels like hence why it just isn't consistent income).

Yes because my self employed work can be done from home. I have a partner who has a good job too. I really feel for people who are hit by this. However I've not been self employed long enough to mean I can get any financial support. I also had a long period where I only had around 1 day a week of work. So it's not been easy by any means!

We will be okay. I worked throughout lockdown (education) and dh had time off at the beginning (self employed) but went back after 4 weeks. He didn’t get any grants etc, wasn’t eligible but we have a good safety buffer of money put away. His employees all got several grants.
Also in Hants and haven’t heard anything but fully expecting tier 4 (my road goes from tier 2 to tier 4) as our cases rise very quickly. We will both still be able to work.

Thank-you for answering. I'm so very sorry.

Yes. I am an ICU nurse so obviously lots of work. Plus I sold my London house post divorce in April and moved out, so have no mortgage and some equity over.

I realise how incredibly fortunate I am. I wish I could help each and every one of you that is struggling.

Yes - although I was lucky enough to get furlough. My husband has a stable job in a sector that's doing very well, but I work in the travel industry. I managed to (by pot luck really) survive the first round of redundancies, but if lockdowns continue into spring/summer 2021 then there may well be another round, and I think I'd be on the chopping block this time.

We're better off at the moment as already on early retirement so the income hasn't changed and expenditure down BUT it will hit us as well when the taxes go up. I don't think anyone is financially immune, but it is a nightmare for many. Friends of ours also own a gym and I don't know how long they can survive. It's a truly awful time and I think it will be years before we recover as a country financially.

Not self employed but I think so. My job is pretty secure. Dh’s - hmmm - he works in the leisure industry but is a “back room boy” so so far has not been affected. It can’t go on forever though - they must be losing money at the moment.

We can live on just my income.

Not sure how dh’s mental health would cope with redundancy though.

Can you delay the tax bill because you need the money to live on?

Also ask HMRC to take into account your earnings this year being lower, so the payment on account might be unrealistically high?

I really feel for you OP, the garage conversion with the bounceback loan and then not being able to make use of the investment is a real kick in the teeth .

I know it's a drastic solution, and will 'waste' the money you've spent on the garage conversion is there scope for selling up and moving to a smaller house in a cheaper area, to pay off your debts and reduce your outgoings to avoid bankruptcy? A nicely converted garage as a home gym or whatever might be a good selling point at the moment.

We are ok in the sense that I’m a TA so my wages stayed the same. I’ve worked throughout whilst also homeschooling DS2. Financially we can take another lockdown but I’m not sure I can mentally.
DH worked in the ME for 5 years and only came home last Christmas. He managed to find another job in March but his job is linked to the aviation industry so whilst he has been employed and getting some sort of salary it’s been very quiet.

My husband is self employed and made almost nothing this year. No idea what we’d be doing if I wasn’t working. I’m sorry OP it all sounds so stressful

We barely survived the first one! But I think we would just about survive a second. Both of us have had pretty much no work since March. We took the maximum amount of mortgage payment holidays and during that time I managed to save enough money to pay the next 2 months' mortgage (we only pay £700). We also signed on to Universal Credit, which I absolutely hate doing & feel ashamed, but needs must. Because DS2 is disabled & I am his carer we receive a high amount of UC + Carer's Allowance, which is just enough to pay everything we need, but not everything we want & nothing for emergencies. I have also been selling little things, it's amazing how £1 here & £5 there adds up. I am employed but it's customer facing so not been required since March. Worked my first shift the other day, which sadly will also be my last for a while as we are now Tier 4.

@umpteennamechanges I would recommend looking into what benefits you can get. Also try selling anything, it's amazing what people will buy. Also, don't be afraid to call HMRC & talk about your DH's tax bill, they will most likely work out a payment plan with you. Good luck & I hope you get through.

Did you post a while ago? You didn’t qualify for any support as all your income had been paid in dividends, was that right?

@ZZTopGuitarSolo What support are you getting in the US if you don't mind me asking?