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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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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And wait until June before you can apply for nothingOriginally Posted by scooby
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
Yep
Thats the other issue not addressed
Not all company directors earn vast salary’s
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Martin Lewis has just tweeted that director bonus payments are outside of the scheme.
When you look long into an abyss, the abyss looks long into you.........
It seems directors can claim on ‘their PAYE salary’ part but can’t claim anything for dividends.
If the company actually stops trading and has no contact with customers or suppliers, obviously that isn’t going to happen, in my case I won’t get a penny but all of my staff can be furloughed, provided the self employed have been honest with HMRC they should be ok.
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
Reasoning seemed to be to wait for people who haven't filed yet. Aren't they late - if so that should be their problem?
Speaking to the few people I know last night that are self employed it is going to be a very difficult time for most of them having to wait until June for any form of help.
Most seem to have very little saving to tide them over.
Last edited by boring_sandwich; 27th March 2020 at 08:22.
I’ve seen a lot of self employed saying they don’t have money to live until June....I have sympathy for them (I spent last 20 years being self employed) but I always had enough money in my bank account to pay the tax bills every 6 months.
How do self employed people find the cash for their tax bills if they have zero money to live on?
They ought to be able to use their set aside tax bill money now to tide themselves over until the grants arrive in June?
Depends what you do for a living.
You can do something else.
Why not concise?
Yup that's pretty much how/why a friend of mine 'does it' that way.
That article seems about right, fair point re the sick leave, hols, but the flip side is 'enhanced' earning capacity...there is always a trade off, that's life it's never fair.
Only if you can get the materials / spare parts etc as most places are shutting down at the end of the week, we have a garage plenty of jobs in including ambulances but no parts available.
As for the payments etc it's a joke a sick one at that the scheme for self employed dosn't even open until June, as for the furlough thing for employees how many business owners will be prepared to stump up the cash for a workforce not working until they can claim it back off the government.
TBH just pointing out an advantage of the self-employed scheme as most comments seem to suggest the other one is the better. Some self-employed can continue to work (at home maybe) and will still claim this grant.
Things aren't perfect but he's doing his best. Whatever he does someone will grumble that someone is getting more.
Personally, just checked and my self-employed earnings were 48% so I'll get sweet f all. Ce la vie.
How come self employed get nothing? I have only read the headline where it says 80% of profit but I guess this isn’t the case?
Anyone have an understanding how the grant will work?> is it interest free ie £ for £
Why interest? They're giving you money.
It's a grant so no need to pay it back, but will be taxable
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.
[QUOTE=wotsthecrack;5363337]Where did you hear that?
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.
[QUOTE=wotsthecrack;5363337]The scheme is open to those who earn less than 50k per year
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[QUOTE=wotsthecrack;5363337]For those that earn under £55k, £55k+ £1 = SFA...
That's the part I'm struggling to understand tbh, in a non judgemental way. Also if they're mortgage holders isn't there a 3 month deferred payment scheme that can be applied for, thereby reducing outgoings, even applies to BTL so my accountant claimed. Which to be honest surprised me though presumably it's as much, more even about protecting the banks by preventing a cascade of mortgage defaults than it is a gift for landlords. I'll pass tbh.
Last edited by Passenger; 27th March 2020 at 10:55.
If two people do the same job they should pay the same tax regardless of their employment status.
I'm happy for contractors to earn more money to balance the risk of the transitory nature of their job, but that shouldn't enable a tax benefit.
In return, the same benefits afforded to PAYE staff should be offered to the self employed.
There are also many people confusing a sole trader business with a limited company set up.
The MP who was on BBC breakfast 20 minutes ago didn’t make the explanation very clear at all either, and he was given a perfect opportunity to do so.
Taking the side of the self employed here......I don’t really understand why the dividend part of “self employed” company owners is not being included in their earnings calculations.
The gov made the rule, which made the small salary/big dividend method the most tax efficient, so it seems rather unfair to penalise those who chose to use that method.
It is only a couple of percent more efficient from a tax POV anyway. Hardly diddling the system, as has been suggested.
I see the Govt is suggesting that once this is over, they will look at raising the taxes the self-employed pay.
Apologies, Self employed profits only up to £50k
Apologies, Self employed profits only up to £50k qualify
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
ML posted that any PAYE salary would count but dividends would not.
When you look long into an abyss, the abyss looks long into you.........
Would have to be furloughed of course.
Yes, forgot to add that bit.
When you look long into an abyss, the abyss looks long into you.........
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.
Which is fine if they bring the benefit/employment laws to parity too, I’ll not hold my breath.
A director, if he performs work which generates revenue for the company - is an employee if he does work other than being a director.
Dividends are completely out with the income stream.
No doubt some will manage to get both payments.
And probably work for cash still,win win
This work for cash comment is getting really boring now! Not all self employed are going round asking for cash and in my experience the customer is the first to ask for a discount on my services for cash payment! It's far easier now to bank transfer and if anyone that has been paid in cash knows the interrogation you get from the bank from where its came from. I get my tax deducted & paid on my behalf from a large house builder I work for. I have no way of working from home, will not qualify for any help not that I planned on taking any!
This attitude that we all chase cash payments is boring!
How do we get mortgages if we only take cash and put a pittance through on our tax returns?
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I'm "PAYE" so the Government can clearly see what I've earned.The "Self Employed" May or may not be 100% honest with their annual earnings and payment of tax!,I think we all know that's a fact,so I'm not saying anything that's not true!.So let's look at the example below.
For eg,The Government say they will give the self employed X £s per week,some may say it's not enough,but those saying that may also not have paid their full tax on ALL their annual earnings!,and I say,what you have fiddled add that to what you are now been offered and so that's what your actually recieving had you not declared all your earnings,because you have had it,and could still have some in your bank.You can't have the bread,butter and jam twice.
And yet we'd all probably do exactly the same,and why wouldn't we,we all want a good time whilst we are here.
Last edited by P9CLY; 27th March 2020 at 16:36.
Interesting. I've used a number of self employed tradesmen over the years, Quite a number insisted on cash, (some providing receipts, some not), whilst others were insistent on bank transfer direct to their business account. I know which will be feeling the more comfortable right now.
Best Regards - Peter
I'd hate to be with you when you're on your own.
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