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Self employed support

Not all it seems

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Someone who previously earned £50001 but is now earning zero gets zilch.  Someone who earns £4999i9 and still working gets £2500 per month.

It took all those very clever people the best part of a week to come up with this! 

Replies (18)

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By lincolnartist
26th Mar 2020 20:15

Also I note the website underlines it's for those negatively affected. I think some people expecting a handout while they're not affected (e.g. in a sector not forced to close) are in for a shock

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By paulwakefield1
26th Mar 2020 20:18

And just wait until all this is over:

"But I must be honest and point out that in devising this scheme – in response to many calls for support – it is now much harder to justify the inconsistent contributions between people of different employment statuses.

If we all want to benefit equally from state support, we must all pay in equally in future."

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Replying to paulwakefield1:
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By John Stone
26th Mar 2020 20:25

Yes Paul. The media seem to interpret this as the self employed paying higher NI. But I wonder if he means high dividends / low salaries for one man companies?

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Replying to John Stone:
Lone Wolf
By Lone_Wolf
26th Mar 2020 20:31

That was my take as well. Perfect time for a chancellor to call a halt to that particular gravy train.

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Replying to Lone_Wolf:
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By leicsred
26th Mar 2020 20:48

But he isn't giving the same support (yet) to those using salary and dividend. That interpretation doesn't seem consistent to me.

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Replying to leicsred:
Lone Wolf
By Lone_Wolf
26th Mar 2020 21:36

I'm expecting once this all blows over for their to be an attempt to equalise things tax wise, so that whether your on salary, self employed, or salary/dividend mix, you pay the same - or as close to the same as possible. I feel that was his first hint at something, and at a later date these will be brought in with the justification being they need to pay for all the support they've dished out during this crisis.

How hard could it be?

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Replying to Lone_Wolf:
RLI
By lionofludesch
26th Mar 2020 23:02

Been saying that for almost fifty years now.

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By Elvis11
26th Mar 2020 20:46

Two questions:

1) How is the £50,000 computed? Adjusted net income as per the Child Benefit entitlement calculation?

2) "Have lost trading/partnership trading profits due to COVID-19". So this must imply the likelihood of a clawback if the 20/21 income exceeds the average for 16/17 through to 18/19?

For the record, I didn't like his "threat" about raising taxes for the self employed in the future. Outrageous.

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Replying to Elvis11:
Psycho
By Wilson Philips
26th Mar 2020 20:50

Hang on while I contact the Treasury

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Replying to Wilson Philips:
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By Elvis11
26th Mar 2020 20:53

Indeed. It's almost like they are making announcements without thinking things through first.....

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Replying to Elvis11:
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By andrew1211
26th Mar 2020 21:11

To be fair there are inevitably going to umpteen quirks, personal situations, oddities etc. so getting something simple covering all funnies is nigh on impossible....for example the taxable profits being low due to claiming AIA on a van...is that fair? I cannot see there being any form of claw-back as someone else has intimated. I know it goes against the grain but this is the Government actually trying to help rather than making it difficult and putting all manner of strings attached.

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By Accountant A
26th Mar 2020 21:20

John Stone wrote:

Someone who previously earned £50001 but is now earning zero gets zilch.  Someone who earns £4999i9 and still working gets £2500 per month.

It took all those very clever people the best part of a week to come up with this! 

Clever people read the announcement before commenting:

"The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19."

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Replying to Accountant A:
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By John Stone
26th Mar 2020 21:39

I don't see that changes anything at all???

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Replying to Accountant A:
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By legerman
26th Mar 2020 23:15

Accountant A wrote:

John Stone wrote:

Someone who previously earned £50001 but is now earning zero gets zilch.  Someone who earns £4999i9 and still working gets £2500 per month.

It took all those very clever people the best part of a week to come up with this! 

Clever people read the announcement before commenting:

"The scheme will be open to those with a trading profit of less than £50,000 in 2018-19 or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2018-19."

So does that mean that someone who had profits in 2016/17 - 2018/19 45k 48k and 51k loses out, but the person who has 51k, 48k and 45k doesn't?

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Replying to legerman:
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By Matrix
26th Mar 2020 23:22

No since it says “or”.

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Replying to legerman:
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By andrew1211
27th Mar 2020 08:36

No, the average is still £48k.

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By memyself-eye
27th Mar 2020 09:41

HMRC will contact eligible taxpayers, which absolves agents from that particular chore.
"Sorry client, not down to me, contact HMRC direct"

I can sit on the sidelines and see how that turns out....deep joy.

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By Lesleys Ledgers
27th Mar 2020 10:16

Yes I agree - I have such a hard working client , she's the main bread winner in family of four. Average profits £56,000 . Pays tons of tax and NI (Ltd Co not her cup of tea - her choice) and now she'll receive nothing..

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