Coronavirus 5 - What help is there for the self employed?
Thanks for your various messages and questions. I’m pleased that what I am doing is helping.
Another day and another announcement, this time to help the self employed who make up 15% of the working population.
It is to be noted that many people think they are self employed and aren’t.
You are not self employed if you have a company and pay yourself a dividend
You are an employee of that company, even if you are the only employee. Therefore you are not covered by the Self Employed Income Support Scheme - you would be looking at the Coronavirus Job Retention Scheme. Here you would need to be furloughed and then the 80% upto £2,500 is only for salary and any dividend payments are not covered. It is hard to see how a sole employee can be furloughed however as surely they still remain as an officer of that company and have to still fulfil the Duties of a Director.
Self-employed income support scheme • Taxable grant of 80% taxable profits over last 3 years • Max £2500pm initially for 3 months • Open to anyone with trading profits of up to £50k • Covers 95% of self employed • Only those with a tax return for 2019 will be able to access • Available beginning of June • Further welfare support available for those in need
For me what was interesting in the Chancellor’s speech was the very thinly veiled threat to the self employed in relation to beneficial tax levels and in particular NI contributions compared to employed people. The government have tried addressing this before and were shouted down. It seems very likely this will be addressed again after the crisis.
Further to my post yesterday detailed guidance is being produced tonight on furlough.
This free service is to help businesses and people in my network during the coronavirus pandemic.
If you have missed my earlier posts you can find them below.
Issue 4 What does furlough mean?
Issue 2 What do I do about tax?
Issue 1 How do I reduce my wage bill?