[Finance] Self employed to receive 80% of income from the Gov’t too

[NooBHA]

Presumably any company that offers overtime, or unpaid days off, will do a monthly payroll as it varies each month ?

Yes more than likely - If you get a monthly payslip then your employer will be operating a monthly payroll scheme

 

[Pavilionaire]

I welcome the proposals in the Coronavirus bill but it could mean a stack of work for accountants at a time when their offices are supposed to be shut and staff at home looking after kids off school, shopping for elderly relatives / volunteering for NHS etc.

This work could entail getting 2019/20 Tax Returns prepped and submitted in order to form the basis of a claim for the 80%, calculating what is claimable for those who have 3 years Tax Returns already submitted etc. However, HMRC proceed as if accountants don't exist and that taxpayers can sort it all online - which many can't.

 

[Simster]

Best conservative government in my lifetime. Never thought i would be pro Tory. Well done Boris.

Yes, Here he is two weeks ago saying we should let CV run rampant through the population and "take it on the chin":

[tweet]1237050695330775042[/tweet]
https://twitter.com/MaximilianJans2/status/1237050695330775042?s=20

I won't argue that the provision being made for the working population by this government isn't right, but seriously this doesn't make them the best conservative government in your lifetime. I'd give them a 7/10 so far personally.

 

[pauli cee]

Easy to see why the Government is refusing to tell building sites to shut then.
Mine is still open, about 100 blokes there.
A few of my lot went in today, saw no social distancing going on, (and some pretty skanky behavior), so the foreman called it and all left site by midday.
All well and good, (and right). But we will be entitled to no financial help as technically we still have a job that we are being asked to do.
Very unfair of the government to put us in this position I think.

 

[DavePage]

I guess that comes under the category of you can't have it both ways, I've a few mates who've always ribbed me about paying taxes and ensuring me there are ways and means of avoiding it. To me if you earn it you've got to contribute and the here and now is a classic example, sorry.

The accountants don’t do anything illegal, they just advise what Tax benefits are available to help in the running of your own business (self employed), whose overheads depending on which trade, could be extremely high, add in the time for estimating, being responsible for their plant and materials, pension, additional family heath, holiday pay.
All that with no garuntee of even getting the work or working full time.

So yes, they deserve the legal Tax breaks available to them.
Show me a politician that doesn’t use every way possible to decrease their Tax bill.

Cash in hand is something completely different, often instigated by the home owner in order to reduce their costs and sometimes the difference between getting the job or not.

In Canada the homeowners seem to think that they have a devine right to pay cash and have discount. Personally I never do, unless you count the family or friends that your wife expects you work a week for a box of beer, just because.

 

[Bold Seagull]

Yes, Here he is two weeks ago saying we should let CV run rampant through the population and "take it on the chin":

[tweet]1237050695330775042[/tweet]
https://twitter.com/MaximilianJans2/status/1237050695330775042?s=20

I won't argue that the provision being made for the working population by this government isn't right, but seriously this doesn't make them the best conservative government in your lifetime. I'd give them a 7/10 so far personally.

I have some sympathy with Boris on this as he isn't an expert, and that clip is a bit out of context of him saying 'you could...take it on the chin", "or enforce draconian measures", or "strike a balance". I think that is what the government have tried to do with the experts is strike an appropriate balance with our culture, health service, risk etc.

He has been flanked by the scientists and experts at most of his press conferences. While I have more than just reservations about Johnson's integrity, I find it hard to doubt the integrity of the scientists to stand there in front of the country and be puppets for what Boris and Cummings want to do.

You know, with pollution likely to nose dive, air quality improve, NHS the saviours of our population, the Tories could come out of this the party of the NHS, Climate Change, Social Welfare, the lot. They might end up more left than Blair was. The Tories don't have some guiding ideology really, the votes they got from tradtional Labour will mean they will happily move to the left if it means retaining those votes - they have a reason to do that now. Won't matter to the electorate on a whole that they were the ones underfunded the NHS to be in this point where we don't have contingency for an epidemic, but after this they'll invest, invest, invest and come 2024 will be 'Saviours of the NHS'.

Sorry, is this the thread about tax!!??

 

[Weststander]

What about the self employed one-man-band's who started limited companies that effectively employed themselves as 1 member of staff on paye, but due to cash flow of the business paid themselves a minimal salary, then paid corporate tax on profit dividends at the end of the year? A perfectly reasonable way for a 1 person business to be run, but 80% of their salary is likely to be not very much?

That's me and 2.5m others.

The measures so far seem to be helping the business, not the individual - VAT and corp tax payments kicked into the long grass, rates holiday for those in the hospitality sector, cheap bank loans and grants.

Perhaps the Chancellor will also cover us tomorrow?

 

[Weststander]

I welcome the proposals in the Coronavirus bill but it could mean a stack of work for accountants at a time when their offices are supposed to be shut and staff at home looking after kids off school, shopping for elderly relatives / volunteering for NHS etc.

This work could entail getting 2019/20 Tax Returns prepped and submitted in order to form the basis of a claim for the 80%, calculating what is claimable for those who have 3 years Tax Returns already submitted etc. However, HMRC proceed as if accountants don't exist and that taxpayers can sort it all online - which many can't.

IMHO It will be based on the 2016/17, 2017/18 and 2018/19 tax returns, so no extra work for accountants. HMRC have the data.

 

[LlcoolJ]

It's the Employers who claim the Grant though - Not the individuals

Did you mean to quote me mate? I was talking (mainly) about the self employed and those with multiple sources of income rather than those who are solely employed.

 

[Simster]

I have some sympathy with Boris on this as he isn't an expert, and that clip is a bit out of context of him saying 'you could...take it on the chin", "or enforce draconian measures", or "strike a balance". I think that is what the government have tried to do with the experts is strike an appropriate balance with our culture, health service, risk etc.

He has been flanked by the scientists and experts at most of his press conferences. While I have more than just reservations about Johnson's integrity, I find it hard to doubt the integrity of the scientists to stand there in front of the country and be puppets for what Boris and Cummings want to do.

You know, with pollution likely to nose dive, air quality improve, NHS the saviours of our population, the Tories could come out of this the party of the NHS, Climate Change, Social Welfare, the lot. They might end up more left than Blair was. The Tories don't have some guiding ideology really, the votes they got from tradtional Labour will mean they will happily move to the left if it means retaining those votes - they have a reason to do that now. Won't matter to the electorate on a whole that they were the ones underfunded the NHS to be in this point where we don't have contingency for an epidemic, but after this they'll invest, invest, invest and come 2024 will be 'Saviours of the NHS'.

Sorry, is this the thread about tax!!??

You might be right, and unlike that orange gimp in America, he's doing the right thing now. However, my gut feeling is that he'd have been more than happy to listen to Cummings until it became obvious we had a real problem on our hands - at which point he has switched to listening to the experts (scientists and health officials).

 

[pauli cee]

IMHO It will be based on the 2016/17, 2017/18 and 2018/19 tax returns, so no extra work for accountants. HMRC have the data.

So would you say it's probably not worth rushing through this years tax return?
(Only asking as this year will my highest for quite a while)

 

[NooBHA]

Yes, Here he is two weeks ago saying we should let CV run rampant through the population and "take it on the chin":

[tweet]1237050695330775042[/tweet]
https://twitter.com/MaximilianJans2/status/1237050695330775042?s=20

I won't argue that the provision being made for the working population by this government isn't right, but seriously this doesn't make them the best conservative government in your lifetime. I'd give them a 7/10 so far personally.

These measures sound great in a news conference on TV - They will struggle to filter down to the population. The Bill going through today is going to block more than 50% of who they were designed to help - Add that to the Administration problems of implementing them.

People are going to be absolutely skint within 6 weeks or less in most cases. And what happens when people are skint ? - They go robbing and looting.

This Government gets a 1/10 because this added to the points you make in your post are also extremely correct and valid. Emergency hardship payments need to be made with no strings attached. Yes it will be expensive but it is better than the alternative which will befall us if we don't.

The Multi Billionaires around the World need to also step up and be counted and make massive donations to ''Hardship Funds'' which Governments should be setting up.

 

[nicko31]

Yes, Here he is two weeks ago saying we should let CV run rampant through the population and "take it on the chin":

[tweet]1237050695330775042[/tweet]
https://twitter.com/MaximilianJans2/status/1237050695330775042?s=20

I won't argue that the provision being made for the working population by this government isn't right, but seriously this doesn't make them the best conservative government in your lifetime. I'd give them a 7/10 so far personally.

Rumour had it Cummins had a word and reminded Bojo of how reliant he was on the grey vote, hence the u-turn...

 

[Wrong-Direction]

I have some sympathy with Boris on this as he isn't an expert, and that clip is a bit out of context of him saying 'you could...take it on the chin", "or enforce draconian measures", or "strike a balance". I think that is what the government have tried to do with the experts is strike an appropriate balance with our culture, health service, risk etc.

He has been flanked by the scientists and experts at most of his press conferences. While I have more than just reservations about Johnson's integrity, I find it hard to doubt the integrity of the scientists to stand there in front of the country and be puppets for what Boris and Cummings want to do.

You know, with pollution likely to nose dive, air quality improve, NHS the saviours of our population, the Tories could come out of this the party of the NHS, Climate Change, Social Welfare, the lot. They might end up more left than Blair was. The Tories don't have some guiding ideology really, the votes they got from tradtional Labour will mean they will happily move to the left if it means retaining those votes - they have a reason to do that now. Won't matter to the electorate on a whole that they were the ones underfunded the NHS to be in this point where we don't have contingency for an epidemic, but after this they'll invest, invest, invest and come 2024 will be 'Saviours of the NHS'.

Sorry, is this the thread about tax!!??

This is what I fear as we'll all have to pay back what they give out for years to come

Sent from my SM-A600FN using Tapatalk

 

[LlcoolJ]

So would you say it's probably not worth rushing through this years tax return?
(Only asking as this year will my highest for quite a while)

Without wanting to state the obvious, it's always best to get your return done as early as possible as then you know where you stand on tax way before you have to pay it. Or if you are due a refund then you get it sooner. But as Weststander said, no it wont have any bearing on any possible compensation by the looks of things as that would be all but impossible.

 

[Bozza]

Yes, Here he is two weeks ago saying we should let CV run rampant through the population and "take it on the chin"

Blimey, even the most anti-Boris of folk have backed down from that because he absolutely didn’t say we should do that.

He said one of the theories was that you could take it on the chin. He didn’t say it was his theory and he didn’t say we should do that.


Philip Schofield: Is the delay essentially trying to spread this out so it doesn’t all happen at once and overwhelm the NHS, and that you can actually delay it into perhaps the summer when it’s a little bit quieter and the ordinary flu might have died down a wee bit, is that what you’re doing?

Boris Johnson: Well it’s a very, very important question, and that’s where a lot of the debate has been and one of the theories is, that perhaps you could take it on the chin, take it all in one go and allow the disease, as it were, to move through the population, without taking as many draconian measures.

I think we need to strike a balance, I think it is very important, we’ve got a fantastic NHS, we will give them all the support that they need, we will make sure that they have all preparations, all the kit that they need for us to get through it.

But I think it would be better if we take all the measures that we can now to stop the peak of the disease being as difficult for the NHS as it might be, I think there are things that we may be able to do.

 

[NooBHA]

IMHO It will be based on the 2016/17, 2017/18 and 2018/19 tax returns, so no extra work for accountants. HMRC have the data.

Here's the Bill Heading towards Parliament today regarding Self Employed

14 Committee of the whole House: 23 March 2020
Coronavirus Bill, continued

“Statutory self-employment pay
(1) The Secretary of State must, by regulations, introduce a scheme of Statutory Self-
Employment Pay.
(2) The scheme must make provision for payments to be made out of public funds to
individuals who are
(a) self-employed, or
(b) freelancers.
(3) The payments to be made in subsection (2) are to be set so that the net monthly
earnings of an individual specified in subsection (2) do not fall below—
(i) 80 per cent of their monthly net earnings, averaged over the last three
years, or
(ii) £2,917
whichever is lower.
(4) No payment to be made under subsection (2) shall exceed £2,917 per month.
(5) A statutory instrument containing regulations under this section is subject to
annulment in pursuance of a resolution of either House of Parliament.
Member’s explanatory statement
The purpose of this amendment is to make the Government ‘top up’ self-employed workers’
earnings to the lower of 80% of their net monthly earnings averaged over three years, or £2,917
a month.

 

[Pavilionaire]

IMHO It will be based on the 2016/17, 2017/18 and 2018/19 tax returns, so no extra work for accountants. HMRC have the data.

If it was that easy don't you think the government would have sorted something out by now?

Plenty will have not been self-employed for the full 3 years, others will have been employed AND self-employed for part or all of that period, will small salary / large dividends all count as one figure for these purposes?

There will be plenty of grey area, HMRC cannot do anything and keep it simple.

 

[Kalimantan Gull]

And, as I understand it, the pressing issue of how you prove you've stopped working and are entitled to the 80%. As I'm sure there are many self-employed who are continuing to work, both part-time and full time. Not a criticism, just an observation.

Its fiddly. My organisation is in some financial difficulty because of the virus. Most people who work with the organisation in the UK are registered self-employed. If I stop contracting them then its going to be even harder to recover, as they are involved in fund-raising and delivery of activities - hard to function without them. If I keep paying them then we could end up running out of money. Completely stuck between a rock and a hard place. If the government comes offering money to these people - the problems are solved.... I can offer them new contracts with lower rates, and the remainder they can claim. And we survive as an organisation.

 

[pauli cee]

Without wanting to state the obvious, it's always best to get your return done as early as possible as then you know where you stand on tax way before you have to pay it. Or if you are due a refund then you get it sooner. But as Weststander said, no it wont have any bearing on any possible compensation by the looks of things as that would be all but impossible.

Thanks LL
Mine always goes off on 6th April, as I like receiving tax refunds