self-employed help

[houselikeashed]

So if my profit is £51k - I get no help from the government?
Is that right?

Thanks Benny so there is some money for ltd companies under the £50k threshold.

@Misssmoo
The answer is nothing at all
If you've recently set up and not completed 2019/2020 tax return for the business you cannot claim

Ltd companies wouldn't be affected by the 50k threshold I think @SeriouslyRetro

I'm amazed by the number of people on this thread who are directors of a limited company who think they are self employed - you're not. I think the only help available will be the 80% of your PAYE (dividends not included) via Job Retention Scheme.

Why are only the Self employed limited to an income of £50k? Why not employed people too?

@Happygirl79 that’s incorrect
He said to file what you can / what you have

Can an employed person earning £60k claim 80% of their earnings?

I'm in the same boat OP, all my hopes were on tonight's announcement.

We are now about 4 or 5 weeks away from defaulting on our debts

I just don't understand it. Where has his £200k income amount come from?
Why are we less important than employed workers?
It hurts.

@Cluelessbeetroot

Thanks
I stand corrected
You're right

wheresmymojo
I'm so sorry.
We're 3 weeks away.

Dividends tax is 7.5% and you get a £2000 tax free allowance

Before you pay dividends tax you already pay 20% corporation tax.

Plus 7.5% up to a certain level and then pay 32.5% dividend tax on the rest.

Employed people can get a max of 2.5k per month - I believe this amount was based on a salary of 30k but haven't crunched the numbers.

I don't believe there is a 'if you earned more than x last year, you don't get anything' rule though, like there effectively is for the self employed.

£2500 a month would see us through this. I never dreamed he would stop self employed people claiming anything.

They really, really REALLY need to help zero-hour PAYE workers whose work has now stopped.

I know someone who is self-employed for around 30% and zero-hour PAYE for 70% and currently earning NOTHING and who will presumably not qualify for any help at all.

They are a 20% tax payer.

My husband is in a partnership. Is it up to £2,500 a month for each partner or for both together?

Yes, £2,500 is obviously a lot more than nothing.

The cut off does seem low and abrupt for those earning just above the threshold.

Have you contacted your creditors? Mortgage holiday?

It's possible the zero hour PAYE might be covered by the retention scheme if their employer claims. Supposedly full details coming tonight

What if you only have 2 years tax returns? And were employed before then.

I had a huge panic over this - I earned £50,600 in 2018/2019. Luckily the guidance in full is now online and it’s eligible if under £50,000 in 2019 OR an average of less than £50,000 over the previous 3 tax years, so 16/17, 17/18 and 18/19.

www.gov.uk/government/news/chancellor-gives-support-to-millions-of-self-employed-individuals

Does that help you? I earned much less in the preceding years so am feeling very relieved! Think £50,000 is a low cut off tbh, how someone like me is lumped in with people earning £200k pa I have no idea.

If over 50% of your income in both those years or 2018-19 came from self-employment you can claim, otherwise you get nothing. 2019-20 year doesn't count.

I am self employed ( foster carer) and my partner is too ( less than 25,000)
So we will get help.
We are very fortunate as we have overpaid our mortgage so it’s very low. Our bills are the same as everyone else’s.
I will probably get flamed but as self employed people we know that at any time our income can stop. We could get ill and be unable to work. As a result of this we have always managed to save.
We (luckily) can manage for a few months if we have no income.
I know this is no help to people who are complaining on here but it will hopefully make people more mindful as to what could happen in the future if you were unfortunately unable to work.
I imagine if you have no savings you can get uc and have a mortgage holiday.

Over the last few years tax on dividends has changed significantly. Those with limited companies will be paying corporation tax of 19% then a dividend tax, 7.5% from £2000 to £50000, then dividend tax rises to 32.5% with a final jump to 38% at £150000. Effective rates of tax taking into consideration NI are higher once you move past £50,024. Higher earners are often paying more tax than those on PAYE so it’s not fair to say that they are avoiding tax and should not receive any consideration in difficult times.

Little sympathy for those drawing dividends. Of course accountants advise what is going to be more tax efficient, that's their job. It is our own responsibility to appreciate 5he potential implications of going with the advice.

I am 100% PAYE so not concerned but very angry for this getting nothing if earning over £50k. How can this be compared to child benefits when all you lose is a couple of hundreds a month and that is after earning £60k. £50k profit if you live in London or SE and sole income doesn't make you well off and able to save £100s every month. They pay more in tax but are entitled to nothing. Where's the logic? It's be outraged if that was me or my OH.

Thank you