So if your employed on paye and earn £55k you get a payment of £2500
If your self employed on £55k you get nothing
Um that seems like a kick in the teeth
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Won't please everyone.
You can continue to work.
Still waiting to hear what help will be given to ltd company directors who don’t get a salary thru paye.
My accountant says he’s still waiting to hear anything
No it won’t please many but that’s more about the wait until June I think, it’s much better than where people where yesterday and at least they’re doing something.
An awful lot have lost all work already though it’s not that they don’t want to work there is no work for them rough few months for many but hopefully many are feeling a bit less abandoned now
Anyone have an understanding how the grant will work?> is it interest free ie £ for £
Self employed should be trated the same as employed.
Based on earnings.
Easy enough to calculate, just base benefit against income tax paid over last 3 or 4 year average?
[QUOTE=scooby;5363258]So if your employed on paye and earn £55k you get a payment of £2500
If your self employed on £55k you get nothing
Um that seems like a kick in the teeth
How have you come to this conclusion? I heard a grant equal to 80% of the self employed profit averaged over the last 3 years tax returns.
BBC
"The scheme is open to those who earn under £50,000 a year - up to 3.8 million of the 5 million people registered as self-employed."
Tonights news programme.
So what happens to Ltd company directors who get a salary And dividends from Company ? Will they be qualify as self employed or payee ? Will call my accountant tomorrow as its unclear
The above is my understanding. Apparently you don't apply, the HMRC contacts you if you qualify. I suspect that loss of any control may unnerve a lot of of people. The Chancellor also mooted a future increase in NI for the self-employed to bring them in line with PAYE.
No doubt some will manage to get both payments.
Has a company director of a small company,basically self employed,I’ll not bother claiming,there’s no such thing as free money and we’ll pay heavily one way or another.
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Obviously we or our kids will pay all these billions or trillions back after all settles down . So be sensible when applying for grants or support from gov .
I guess the system that helped the self employed is screwing them now.
I have lots of friends who are self employed and have avoided tax for years as the system allowed them. They seem to be taking the view of we can't have out cake and eat it. I mean some are still looking to avoid the tax from last year.
I run my own business and I Just want to clarify that when you are self employed and run a business you have a turnover and a profit once your business expenditure has gone out. This scheme covers people whose trading PROFIT is £50 000 per year or less not their turnover. If your business turns over £74 000 and your business expenditure is £25 000 then your trading profit is £49 000 and you would qualify for the grant
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Yes but what if you take salary and dividends from that trading profit and leave the rest in company for expand or buy more stock ?
I think self employed rule of £50000 per anum are for sole traders ?
And if its ltd and you take salary then you will be eligible for 80% of that salary.
Please correct me if wrong
I don’t know anyone in my position (owner and sole director of a small business) who avoids paying tax. I pay both corporation tax and income tax (including on dividends drawn) and don’t actually see why I should be stuffed whilst others receive assistance.
Its barely any more tax efficient these days, and certainly doesn’t justify the government’s present position.
Rishi doesn't like ltd company freelancers/contractors and nor does his father in law.
I finish up on my current gig tomorrow and expect it will be a barren couple of months for cashflow unti I can land something.
It is not clear if a director can furlough or not. Any reference to that answer would be useful.
I have non-paid work for a start-up to keep me busy and have volunteered to help the NHS too.
Small Ltd companies are an easy target and won't get any public sympathy so are easy to shaft.(all in this together etc)
Let's just hope it doesn't take too long to get back to working.
It's good to know my staff are on at least 80% of their wage paid by the government and that the self employed (even if they are racking it in now) will get another 80% added to their earnings whilst us honest company directors are being sold down the river. Well done Rishi, now run off and enjoy your month off on full pay sir
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