Sensible thread for self-employed people

[Bflatmajorsharp]

Could we have one please?

You know, where we don't have to continually confirm that yes we pay the same taxes as employed people, yes we pay slightly less NI but don't have access to SSP or pension contributions, yes the HMRC does know what we earn as we submit a tax return each year.

It's really struck me this weekend that offering no financial support to the 5million SE/gig workers is a public health issue.

People are still going to work because they can't afford not to. Some London tubes were packed today with people who cannot social distance, not because their jobs are vital but because they cannot afford not to work.

I hope that the govt address this sharpish. It's so dangerous.

DH and I are a ltd company , that means we’re stuffed and can’t get anything ? Even though we’ve been forced to close ?

It doesn't seem to be clear what's happening re ltd companies.

Does anyone know?

I've always filed my taxes online, and I don't remember entering my bank details every, but I guess that's because I've always known I wouldn't get a rebate! Maybe I did once and then forgot and it's just stored them. hmm..

Or they could write and ask me I guess!

This is good news for me as I just lost a recent client which was a significant increase in income for me, she’s ill with Cov19. Hopefully I can go back after this is over but it’s lost me thousands in income just as I thought things were looking up

I enter my bank details every year on my online return. Maybe it’s optional.

I only opened in July 2019 so I won’t be entitled to this as obviously haven’t filed a return yet. I do however have an office and receive small business rates relief. Does anyone know if they are still paying those grants by any chance? The only information I can find out is that apparently my local authority will contact me if I am eligible.

My business has plummeted and I’ve had about twenty client cancellations in the last two weeks. A lot don’t want to rebook because they are worried about finance themselves. Can’t blame them.

Ive literally just got enough together to pay the rent on the office and I’m going to have to let some other bills bounce.

I know everyone’s in the same boat but I’m just so tearful. I don’t know what to do at all!

@confusedandtired99 we had to apply for the business rates relief phoned the council and they sent an email with a link to the application form , should hear by next Wednesday ( we’re in Wales , and it’s devolved so I’m not sure about the rest of the U.K. ) worth a phone call to the council though

Does anyone know if you can claim the salary if you're a company director ?

DH was advised last year by his accountant to go limited, so he's the director. Doesn't pay himself dividends though. Not sure whether this means he will be able to furlough himself and claim the 80% or not, my concern is that he will fall in between the two schemes. He's a hairdresser, and hasn't been able to do anything for the last week. Not sure how people are supposed to manage until June or even until the end of April when presumably the universal credit claims will start to trickle through. Feel sick when I think about it.

Some of the speculative articles I've read by accountants seem to think the director could furlough themselves but nothing clear as yet (to me at least, I've never really understood his tax etc)

I think the problem is in theory directors could furlough ourselves, but then we have to do no work, and in reality that's not likely to be possible, we need to keep things ticking over and to try to prepare to rebuild our businesses once this is over.

Thank you @Doilooklikeatourist I will call them and just double check when they open.

Hi does anyone have any advice of you rent an industrial unit or premises / storage in this situation? It is quite a vague arrangement with a farmer no notice required, unsure if rights during this time...We need to keep paying it, however due to the costs of this it brings the profit down therefor not eligible for the gov support (or only a bit) but not enough o cover the costs of the unit?

We get a small amount of tax credits, I guess if it works out as a loss, that does work with tax credits as you can right it off against a profit other years, so maybe that will be possible.

Reading the BBC article this morning - sounds like it won't actually be automatic. They will send you a notice if they think you're eligible, then you have to confirm you are (not quite sure what this involves - either criteria or proof), and give your bank details.

If your business was increasing year on year, and you expected to make, say, 110% of last year's profits, then only making 80% of the last three years' average might be a noticeable loss, so I'm not sure how easy it would be to confirm that you had suffered a loss of income when it's all speculative anyway given the up and down nature of self-employment.

And of course it's hard to predict. It could be a drop of 50% by later in the year, because of various knock-on effects. Clients are staying for the moment sometimes out of good will, but that won't last long term, and the whole situation affects getting new clients - the implications won't be apparent for a few months.

I hope the burden of proof /repayment levels are fairly clear when applying.

We have currently 3 customers unable to pay averaging £800 each we have deferred the mortgage. We received a tirade of abuse yesterday, people leaving their houses repeatedly, taking photos and threatening to name and shame our business for going to work . Its my DH and son doing roof repairs from the recent storms which are now last weeks news, we live in the same house so are not associating out of our immediate household, no contact with clients, work outdoors, materials are already here, bank transfer payments and as everyone bills and food to pay. It feels like we are crossing the strike line but we feel we can still work safely! Anyone else experienced anything similar? Sorry for posting here I didnt know of this thread is just financial or for all self employed discussion.

DP and I are doubly fucked.
We’re both SE
He’s been trading less than a year, so gets nothing.
My trading profit is more than £50k, so I also get nothing.

I'm sorry tigerbear there are lots of people who aren't being 'caught' by these safety nets.

Could your accountant advise on whether there is anything that you will be entitled to?

stairgates I think one of the issues with working/driving etc is the possibility of having an accident and putting more strain on the NHS. Of course that could happen at home too.m

Good point Bflat, I will make sure that only the jobs with further risk to damage and health risk are seen to and any cosmetic work is put off til things come right again. Yesterdays job the lady had water dripping off her light bulbs so needed to be done before the rain returned.

According to Martin Lewis, company directors can be furloughed
Quote
EDIT UPDATE: I've now had a second state source contradicting this. So please put a pause on your thoughts. Trying to get a firm answer. Will delete this edit when I do.
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I've had it CONFIRMED, self-employed limited company directors CAN be furloughed as employees on their PAYE element.

Technically they can't then work, yet directors of limited companies do have some ongoing legal duties and paperwork to do. Yet if you did that no one would know, and I am hearing that the state would not be looking to prosecute if the work is limited to this.

Oh , maybe not .. this us the 3rd post from him on this today ..

Does anyone know if we claim UC from now until June to keep us going until this payment comes, will we then have to pay the UC back?

I'm SE, havent earnt a great deal over last 3 years (which is a bonus with 2 DDs at uni) so I should be ok, should at least get something.

DH is a co dir, they have just furloughed their staff (small company, 7 people in total).

BUT we now have 2 adult DDs living at home, both recently become unemployed through no fault of their own - should they try and claim JSA (dont think we are in a UC area)? If they did would they have to actively seek work? we are self-isolating as DH only a couple of weeks post-chemo, so either/both of them going to work in a supermarket doesnt seem entirely sensible.

So before the chancellor's SE announcement SE people were crying how much they will lose out. Since he has announced its I've not earned that much over the past 3 years or I earn over £50k.

If you have not earned much you were not gainful SE in the first place claim UC if you have earned over £50k you were gainfully SE. with the government providing help for mortgage, rent , council tax and business rates, you should have cash enough to tie you over.

I think I agree on the whole adiposegirl2.

There will be people who aren't entitled to anything, especially gutting for the newly self-employed, esp if they have taken out loans etc to start their business.

It would be good to have some clarity on the ltd company situation.

I think the major problem for most people is if they have nothing or very little in their bank accounts now, and there's no other income coming into the household.