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

[Wrong-Direction]

So can someone explain to a moron like me what I'm entitled too? Universal credit, 5 week wait? Or wait until June to get 80% of what I earnt in my first 9month year? Basically I'm ****ed

Sent from my SM-A600FN using Tapatalk

 

[Shropshire Seagull]

Really ??

That's more like a politician's response than a tax adviser ...

Please confirm if you think the scenario laid out is smart or dodgy - you shirley MUST have had some clients in this [or very similar] situation ....

I assume you mean contract law rather than contact law?
Contract specialists really ought to have an eye for detail - we all know that with contracts, the devil is in the detail ....

For contact law - it's 2 metres now isn't it?

 

[WATFORD zero]

...

 

[WATFORD zero]

So can someone explain to a moron like me what I'm entitled too? Universal credit, 5 week wait? Or wait until June to get 80% of what I earnt in my first 9month year? Basically I'm ****ed

Sent from my SM-A600FN using Tapatalk

He's just answered a question from Robert Peston about situations like yours and, if I've understood correctly, It will be based on your 9 months submitted. (Lucky you went self-employed when you did and got that first tax return in).

 

[Gazwag]

So can someone explain to a moron like me what I'm entitled too? Universal credit, 5 week wait? Or wait until June to get 80% of what I earnt in my first 9month year? Basically I'm ****ed

Sent from my SM-A600FN using Tapatalk

You don't get 80% of your 9 months you will get 80% of three months as its currently only valid for three month based on the average earnings.

So if your profit for 9 months was £9,000, that's £1,000 a month so you would get £800 for the next 3 months so £2,400 which will be taxable.

 

[martin tyler]

So can someone explain to a moron like me what I'm entitled too? Universal credit, 5 week wait? Or wait until June to get 80% of what I earnt in my first 9month year? Basically I'm ****ed

Sent from my SM-A600FN using Tapatalk

Think a lot of people are missing what your saying. It’s not an easy situation tbh as although we are not being forgotten about as self employed June is a while away. I’ll be chasing money until then but work is likely to dry up meaning no wages April and May. I’ll loon to survive in what I can get in but not everyone will be able to I know that. I suggest cancel all bills if you can and make the claim make bulk payments in June if and when you get the money.
Your return will be divided by 9 and then you will get 3 months worth back I assume

 

[KZNSeagull]

Think a lot of people are missing what your saying. It’s not an easy situation tbh as although we are not being forgotten about as self employed June is a while away. I’ll be chasing money until then but work is likely to dry up meaning no wages April and May. I’ll loon to survive in what I can get in but not everyone will be able to I know that. I suggest cancel all bills if you can and make the claim make bulk payments in June if and when you get the money.
Your return will be divided by 9 and then you will get 3 months worth back I assume

I think he said that the self employed can also apply for the government loans that businesses can apply for, so that maybe an option. I am sure the accountants on here will be long later once they have digested everything.

 

[NooBHA]

The hole you're digging is getting bigger and bigger.

You said that you have clients who are in this situation. So presumably they paid you for advising them that it was the best thing to do. Unless you were giving them incorrect professional advice.

So you have profited from, and assisted with, people being in the exact situation that you are now saying is wrong.

What the actual f**k?

You advise people on the most tax efficient means for them based on the legislation in place. That doesn't necessarily mean that I agree with the Legislation in place.

 

[Marty___Mcfly]

So can someone explain to a moron like me what I'm entitled too? Universal credit, 5 week wait? Or wait until June to get 80% of what I earnt in my first 9month year? Basically I'm ****ed

Sent from my SM-A600FN using Tapatalk

BBC seem to think that you’ll need to have submitted a full 12 months of accounts so April 2018-April 2019. This would mean that anyone who began self-employment later than April 2018 will get nothing. Do wait for the full details to be revealed though.

 

[Gazwag]

BBC seem to think that you’ll need to have submitted a full 12 months of accounts so April 2018-April 2019. This would mean that anyone who began self-employment later than April 2018 will get nothing. Do wait for the full details to be revealed though.

In his speech he said if you are recently self employed they would take into account what has been filed. Therefore its only people that became self employed after April 2019 who will need to apply for loans or universal credit. If you started in Feb 19, filed your tax return for Feb and Mar 19 profits (if you made any of course) you would get this divided by two (to give one months profits) and get 80% of that for three months

 

[Weststander]

BBC seem to think that you’ll need to have submitted a full 12 months of accounts so April 2018-April 2019. This would mean that anyone who began self-employment later than April 2018 will get nothing. Do wait for the full details to be revealed though.

That’s summarised too briefly and wrong/misleading to mention “full year”.

As long as HMRC have a filed tax return for 2018/19 (or do late for 2018/19 within the next 4 months), with self employment pages, the scheme will cover the person, even if that initial trading period was short.

 

[KZNSeagull]

There is also the housing benefit scheme (or whatever it is called) already announced to help with private rentals.

 

[NooBHA]

'Financial use of the laws of the land for their financial gain'.And you're an accountant and lawyer!

Besides, no one was crying, but the things you were saying, intentionally provocative, largely unfounded, and deserving of you being picked up on.

I have to concede on that Ooooops !

I had started to respond in a certain way then changed my mind on how to say it part way through but when I made my amendments I left the first ''financial'' still in my post erroneously.

''but the things you were saying, intentionally provocative, largely unfounded, and deserving of you being picked up on''

I am the new BG and I claim my £5

 

[Billy in Bristol]

At least we know now, shame that due to illness had a shit middle year, but can plan with some degree of certainty. I work in events and have mainly focused in the past on places on them being sold via charity auction. The latter has disappeared, the former now in the Autumn. Luckily only 16 people in any session so hopefully that will evade the likely restrictions on mass participation and spectating events in the coming months.

 

[Weststander]

You don't get 80% of your 9 months you will get 80% of three months as its currently only valid for three month based on the average earnings.

So if your profit for 9 months was £9,000, that's £1,000 a month so you would get £800 for the next 3 months so £2,400 which will be taxable.

..... backdated to 1 March 2020.

 

[Wrong-Direction]

..... backdated to 1 March 2020.

My operating profit was 9 grand for 9 months so guess I'll get 800 a month? Shame they wont take this years into account as I reckon I've earnt double that

Sent from my SM-A600FN using Tapatalk

 

[drew]

Not quite clear what I can claim or will get.

They said 80% of profit. For argument's sake, assume you are earning £1800 a month and you have £800 of fixed expenses, eg van rental, loans etc. That leaves your net profit at £1,000. You'll get 80% of that, ie £800. So effectively, you are getting money to cover your fixed expenses that leaves nothing to live off.

Assuming you aren't able to work (for example, I'm a driving instructor and, of course, you can't teach from a distance of 2m) can you also claim SSP, Universal Credit etc etc.

The devil will be in the detail.

 

[Weststander]

A very important point, made just before 6pm on 5live by a genuine expert, in favour of the self employed.

The self employed will receive these payouts regardless of whether they’re still trading eg with reduced trade, fewer jobs.

As opposed to staff/directors in the employed world, where it’s an all or nothing thing - if you’re working in any shape or form (including from home), then the government scheme will not pay 80% of your gross wages.

 

[CHAPPERS]

As if Universal Basic Income woudn't have been easier than this mess.

 

[Wrong-Direction]

Not quite clear what I can claim or will get.

They said 80% of profit. For argument's sake, assume you are earning £1800 a month and you have £800 of fixed expenses, eg van rental, loans etc. That leaves your net profit at £1,000. You'll get 80% of that, ie £800. So effectively, you are getting money to cover your fixed expenses that leaves nothing to live off.

Assuming you aren't able to work (for example, I'm a driving instructor and, of course, you can't teach from a distance of 2m) can you also claim SSP, Universal Credit etc etc.

The devil will be in the detail.

800 - 20% tax, eventually

Sent from my SM-A600FN using Tapatalk