Self employed earning over £50000

[candle18]

I feel the govt have been a bit unfair capping the self employed income at £50000 but not for PAYE people. My brother is a solicitor in a firm but classed as self employed as he is a salaried partner. He has earned slightly over £50000 but still has a family to support. His work have furlonged a lot of employees but have told the partners that they have to prepare for minimal wages over the next 6 months but are still expected to keep working. If a couple both earn £45000 however they can both claim. Anyone else in this situation.

Me.

I am crushed TBH.

I'm a contractor and not in a contract and unlikely to be in one for some time now due to the pandemic.

Today will be spent figuring out how we can avoid bankruptcy, if that's even possible.

Employed people who have been furloughed will not receive 80% of their income, regardless. Their employer will receive up to 80% of the total cost of the employees salary up to a maximum of £2500 a month. A person on a salary of £50k a year will normally get a gross salary of £4166 per month. 80% of this is £3333, but they won't get that, as its above the maximum of £2500.

I think he has been ripped off before all this...A partner is a law firm on 50k? Should be so much more than that

I haven't lost all my contracts yet but if I do I'd be eligible for nothing as my profit is over £50k. If it is going to be capped at £2,500 anyway I think £50k limit was too low.

I've paid over £20k in tax a year for years and will be helping pay off this government debt but I can't benefit from it!? Fucking ridiculous and unfair.

If you are paying 20k a year in tax then you will have savings built up to pay for tax in July. Since they are deferring tax to next year and depending on your tax year you may be able to reduce payment on account considerably looking long term.
You need to look at reducing outgoings for the next few months. Mortgage holiday, any direct debits that aren’t essential, contact utilities and council tax.
I am in a similar position and not likely to be paid for a number of months but I have savings and credit cards that I can use.
Unfortunately if you live for the moment then this is going to be a wake up call. You will not get any sympathy whatever excuses you give since you earn over twice the amount the average family lives on.

My brother only became a partner two years ago and it’s not a big firm so starting wages for partners aren’t huge. I appreciate people earning £50000 PAYE wouldn’t get 80% as it’s over £2500 but at least they would get that. It just seems unfair that he’ll be expected to keep working on no or minimal wages. I thought the govt would make the scheme the same as for employed staff. Although it’s a high wage, for single parents etc who still have a lot of outgoings they seem to be missing out on the govt funding but will go on to pay the highest taxes.

@tallah He was only working 4 days per week during the qualifying period as he is a single parent.

If you are paying 20k a year in tax then you will have savings built up to pay for tax in July.

Yes, of course I do. The deferral to Jan 2021 is not much of a help as you just have twice as much to pay then.

Thanks for the rest of your patronising post. I don't need you to tell me how to economise, thanks!

You don't know individual people's circumstances. Up until 2 years ago I was paying private school fees (reluctantly, not through choice) so I couldn't build up savings. I'm fine now but the point is not everyone will be. I have a mortgage until I'm 70. Again, not my fault as it was circumstances beyond my control.

It's the assumption that everyone above £50k is fine. Not everyone will be. I will be short term for a year or two but if I lose my contracts given my age and the sector I work in it's unlikely I'll get other contracts so long term I won't.

Single parent too. There is no one to fall back on. Yes, I'm in a better position than most but I've paid in so the least I should be able to get out is what everyone else is getting - £2,500.

There's PAYE earners on twice my income who presumably will get £2,500.

It was the same with the child benefit changes that Cameron brought in. I was penalised while two in a family bringing in more than I was could still get it.

Up until 2 years ago I was paying private school fees (reluctantly, not through choice)

How does that work?

Don't be nosy!

Surely people earning that will have savings or capital to borrow cheaply against. I know I’m super risk averse but it’s scary how little savings people have even when earning twice the national average. I’d feel scared without a decent cushion at the best of times.

@lizzie1970a Don't be nosy!

Don't make bullshit statements on forums then.

hmmm but employees on 80% will only go home with maximum 30k per month... (£2500 max per month) Many wont even be lucky if their salary doesnt qualify for the max!

sorry typo, 30k per year!!!

Use you imagination Scarlett, if you've got one - there are various reasons why that could be (that aren't necessarily why mine were because, as I said, it's none of your business) - to help you out as you can't seem to think for yourself - they were in private education as it was being paid for by someone else initially but then fell (reluctantly) to me; I couldn't get them into a decent state school nearby; we moved and there was nothing else appropriate in terms of distance; wrap-around care was needed; extreme bullying so we had to leave the state sector. So much for "bullshit". All perfectly valid reasons to send your kid privately but being reluctant to do so. Try to imagine your experience won't necessarily be someone else's.

And don't be nosy in future, especially when you're trying to trip someone up.

Surely people earning that will have savings or capital to borrow cheaply against. I know I’m super risk averse but it’s scary how little savings people have even when earning twice the national average.

We had 3 months of savings - we are now down to the last 4 weeks as I've been out of work since January.

We only purchased our first house 2 years ago and the price has gone down £20k since then so no, we don't have equity to borrow against.

Perhaps you could, for one minute, actually be vaguely empathetic towards those of us that are facing bankruptcy or...if that it is too much for you fuck off and keep your smugness to yourself.

@lizzie1970a Use you imagination Scarlett, if you've got one - there are various reasons why that could be (that aren't necessarily why mine were because, as I said, it's none of your business) - to help you out as you can't seem to think for yourself - they were in private education as it was being paid for by someone else initially but then fell (reluctantly) to me; I couldn't get them into a decent state school nearby; we moved and there was nothing else appropriate in terms of distance; wrap-around care was needed; extreme bullying so we had to leave the state sector. So much for "bullshit". All perfectly valid reasons to send your kid privately but being reluctant to do so.

Yes. They are valid reasons. For making the CHOICES you did.

You said it was 'not through choice'. Of course it was. You CHOSE to send your child to private school for those reasons.

Saying it was 'not through choice' was completely bullshit.

Agree with you OP. I think everyone should get something even if it’s on a sliding scale, assuming the higher earners have been able to put something by (which they may not have - 50k is not a lot of you are eg supporting a family and paying a mortgage in London).

I’m sorry. And sorry about the snarky posters. It is just all pretty tough.

If you have been earning over £50k and not putting any savings aside then you have been reckless with money imo.

Oh my god, again with the middle class bashing I see. £50k isn’t a huge amount. If you’re living in a tiny house up north unscrupulously using state services then yes, of course you should be able to save up. But if you live in London that’s just not the kind of salary that will leave enough at the end of the month to save up, especially if you are trying to do the right thing and taking out private health insurance (I won’t say privately educating because that’s just so unlikely on that salary).