No, it's specifically excluded.Quote:
Originally Posted by patch1875
Hopefully, your situation will be addressed next.
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No, it's specifically excluded.Quote:
Originally Posted by patch1875
Hopefully, your situation will be addressed next.
I’m not CWG, so I presume you’re entitlement will be based on your dividend paymentsQuote:
Originally Posted by Ozyhibby
Sorry to say that Directors can’t furlough based on the current announcements.Quote:
Originally Posted by patch1875
Yeah pretty much shafted must be plenty people in the same set up.Quote:
Originally Posted by Global Hibby
Can you though? Doesn’t seem very clear.Quote:
Originally Posted by marinello59
I’d deleted that comment while I tried to check. I would assume you could as effectively you are an employee of the company if you are on the pay roll.Quote:
Originally Posted by patch1875
I don't see why you can't.Quote:
Originally Posted by marinello59
As you say, you're an employee. If you aren't actually working, then it's justifiable to furlough yourself and claim the 80%.
I’d deleted that comment while I tried to check. I would assume you could as effectively you are an employee of the company if you are on the pay roll.Quote:
Originally Posted by patch1875
My hope is that you guys will be next in the queue.Quote:
Originally Posted by patch1875
That said, if sorting out the s/e was complicated, you will be even more so. :greengrin
A wee aside for the s/e. There was a heavy hint today that, if and when we get back to normal, there will be major changes to tax legislation that will not be good news.
Not in the least surprised.Quote:
Originally Posted by CropleyWasGod
Whatever help we get will need to be paid back in some form.
Help.
I’m a director of my own company.
I pay myself a salary as per my accountant.
This is pretty much a basic wage however I actually withdraw from my bank each month considerably more.
When final accounts are done each year and my tax computation is worked out my earnings statement is topped up with dividends.
I was convinced I fell into the self employed bracket but that doesn’t appear to be the case?
See above :greengrinQuote:
Originally Posted by KeithTheHibby
Your situation has yet to be clarified. Hopefully, you will be next.
In today announcement it was stated that directors can not be furloughed as directors have responsibilities to run the company even in like these. There is of course not an issue for that director to seek another job and continue as a director. The news sucks and I am told it’s highly doubtful to be changed....I hope that changes.
Cheers CWG, appreciated.Quote:
Originally Posted by CropleyWasGod
Sent from my iPhone using Tapatalk
It definitely doesnt if you mean renting out a flat...............It does if you run your own property development company.Quote:
Originally Posted by Ozyhibby
A property development company isn't self employment either.Quote:
Originally Posted by green day
Does anyone know the 80% is based on net or gross wage
My understanding is that it's gross as you'll then be taxed on it from there - given you're being taxed on a smaller number you'll then end up with slightly more than 80% of your regular net pay.Quote:
Originally Posted by WoreTheGreen
Thanks for your replyQuote:
Originally Posted by danhibees1875
Any idea what happens for people on zero hours contract? Please.
This is as clear as I can find. From the Guardian:-Quote:
Originally Posted by Moulin Yarns
I’m on a zero-hours contract and have been sent home
The pledge to meet 80% of wages applies to everyone who is on PAYE – that is, taxed before they are paid.
It is not clear what figure the 80% will be based on. The chancellor, Rishi Sunak, has said it will probably involve some kind of smoothing of earnings – that is to say it could be based on an average of recent weeks’ pay so you are not out of pocket if your last week’s wages were much lower than the previous week’s.
Would it not have been easier and quicker to simply implement some sort of helicopter money policy.
Simply provide x£ to every household / taxpayer in the country?
Might have ended up more expensive and of course given something to some that don’t ‘needs it but may well have been much quicker and also ensured less fell through the cracks?
Fair point, went off piste a bit there:aok:Quote:
Originally Posted by CropleyWasGod
I was just trotting out the line the taxman uses to stop people claiming certain reliefs as renting out a flat is deemed different from running a property business.
Cheers, the situation I'm thinking of is a person working seasonally in a tourist dependent retail environment. They work from Easter to October and covered for full time staff on leave.Quote:
Originally Posted by CropleyWasGod
Might only have worked maybe 28 hours in the last month.
Edit: they are due to start regular work from 13 April, and the employer has confirmed that they will get 80% from that date.
Reading through it all this morning (I was a bit drowsy last night after the hospital) and it looks like I don’t qualify as less than half my income is self employed. No complaints because if everyone else is supported then my business will be ok.
Sent from my iPhone using Tapatalk
It now seems that limited company/sole directors can furlough themselves.
Where are you seeing that?Quote:
Originally Posted by patch1875
I have seen arguments, from good sources, for and against.
I’d be interested to see where that came from tooQuote:
Originally Posted by CropleyWasGod
Martin Lewis
Hopefully it’s true the actual gov advice doesn’t seem to say you can’t.
Thanks. I've just watched it.Quote:
Originally Posted by patch1875
I hope HMG do give clarity on this. It's still only £525 per month, but better than nothing which is what some decent sources were suggesting.
How do you arrive at that figure CWG?Quote:
Originally Posted by CropleyWasGod
Sorry, it should be £575.Quote:
Originally Posted by KeithTheHibby
The common amount for directors' salary in a small company is £719 per month, the NI threshold. It's 80% of that.
Next month the salary will change to £791, of which 80% is £633.
For those of you who were contractors, I've just heard of one major company who have decided to defer the IR35 provisions for a year, as now allowed.
I’ve always paid myself about 1k a month so hopefully I might get a bit more.Quote:
Originally Posted by CropleyWasGod
As salary?Quote:
Originally Posted by patch1875
a bit late for many.Quote:
Originally Posted by CropleyWasGod
Spill the beans :greengrin
:lips sealQuote:
Originally Posted by jonty
TBH, I think they've got themselves out of a hole. I reckon they started their review of the contractors too late, ran out of time, and got to a point where they said "sod it, you're all employees, and no appeals."
They now have a year to do a proper status review, and maybe save themselves some money (and some decent contractors) as a result.
It might still be too late for them if their contractors have jumped umbrella/paye and closed their companiesQuote:
Originally Posted by CropleyWasGod
I fortunately managed to avoid that with a contract in public sector, outside ir35. I thought 12 months would be plenty of time to let financial services get their act together. It might not be long enough now :greengrin
Yes and a quarterly dividend.Quote:
Originally Posted by CropleyWasGod
Likewise.Quote:
Originally Posted by patch1875
My accountant each month puts through a payslip for me around £800. I top that up with another 1k roughly which shows as dividends in the company accounts.
At the moment I’m so confused how much I’m likely to be entitled to.
Then you should get 800 a month based on 1k a month salary.Quote:
Originally Posted by patch1875
At the moment, it looks likely to be 80% of the £800 and nothing for the dividends as of yet.Quote:
Originally Posted by KeithTheHibby
Hopefully your Ltd has some cash reserves and you can take a slightly higher dividend?
HMRC advice has been updated. They have confirmed that directors of small companies can be furloughed.
They can continue to attend to the company's statutory duties, but can't generate income for the company, if they are furloughed.
https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme
Thanks for postingQuote:
Originally Posted by CropleyWasGod
I’m still managing to work and been really busy, good to know the option is there but not really going to pay many of the regular bills.
My wife is a contractor and Director of a Ltd Company, she has read the details in the link but wasn't sure if it was confirming you would receive 80% of your day rate or if it was still 80% of the salary you have taken through paye and ifQuote:
Originally Posted by CropleyWasGod
the claim for furlough has to be done through her agency. Can you confirm any of these details. Thanks
If she pays herself a salary from the company, it's 80% of that salary.Quote:
Originally Posted by brianmc
And the furlough has to be done through the company as well. As far as I know, the portal for declaring her to be furloughed isn't yet open.
Presumably, the company invoices the agency for the day-rate. Is that correct?
Yeah she invoices the agency, she said she though it was only the salary but wasn't sure how it read. She will keep an eye on HMRC website for it opening then to process it herself. Thanks
A wee heads on anyone who’s Furloughed an employee. You need to register online with your Company PAYE details
The bit I’m not sure about, is do you register your own name or company name
https://www.gov.uk/paye-online/enrol
I assume this is just to ensure they are registered online for those that might still do it manually rather than using the PAYE software?Quote:
Originally Posted by Billy Whizz
Did they not do away with manual submissions a while ago? I seem to remember something about phasing in the online software for all employees.
I got an email yesterday saying that they are closer to having the online claim process ready, and a further email will be sent in due course.
My accountant does my PAYE, but they said there was no way they could do this for every client, so told me to sign upQuote:
Originally Posted by StevieC
This was in the email I got yesterday from HMRC.Quote:
Originally Posted by Billy Whizz
“ If you’re eligible for the scheme, there are things that you can do now to be ready when the system is up and running later this month.
You’ll need to provide the following to make a claim:
The bank account number and sort code you’d like us to use when we pay your claim.
The name and phone number of the person in your business for us to call with any questions.
Your Self-Assessment UTR (Unique Tax Reference), Company UTR or CRN (Company Registration Number).
The name, employee number and National Insurance number for each of your furloughed employees.
The total amount being claimed for all employees and the total furlough period.
If you use an agent who is authorised to act for you for PAYE purposes, they will be able to make a claim on your behalf, so please speak to them now.”
I’m not sure how you are meant to work out the amount you are claiming for when we’ve no idea how long the Furlough will last??
But I assume this question will be getting asked and they’ll have an answer by the time they are ready to start taking applications.
Furlough periods last 3 weeks, so I think you have to claim for the whole 3 weeks.Quote:
Originally Posted by StevieC
If the employer is the company, that is the name you should use.Quote:
Originally Posted by Billy Whizz
As Stevie says, though, every employer should be registered online now.
Edit... just read your later post.
Your company will already be registered, but your accountant is suggesting that "you" take over the administration of the payroll. That will need you to get log-in details from HMRC for your company.
I'm surprised at your accountant, though. I thought they would have been glad of the work.
Crops, thanks for the feedback, they’ve told all their clients to register, just a small family firm who are under staffedQuote:
Originally Posted by CropleyWasGod
I’ll need to do it again, as I used my name rather than the Company name
My son is self employed, sole trader. He knows he can’t get a payment till end June but was told by somebody that he should expect a letter sometime from HMRC explaining everything !
Is that the case ?
Are other sole traders still waiting for a letter or have they contacted HMRC direct ?
There is no application process as such. As you say, HMRC will be in touch. As I understand it, they will write with their assessment of the amount due, and it will be for your son to confirm his agreement.Quote:
Originally Posted by hibeg
I'm not sure what happens if he doesn't agree.
I received an update from a specialist accountant in my field this morning.
"Although we have heard of a small number of receipts in the Edinburgh Council territory it is fair to say that their team appear to be the most challenged in the country at this time and many have found they still await any communication for early submissions. It is hoped that this bottleneck experience will be relieved shortly to ease cash concerns at this time of need."
If, like me, anyone is waiting for the £10k local authority grant, it appears that Edinburgh are either busier or are making harder work of things than other Scottish authorities.
Looks like we just need to be patient. Not easy when you're facing up to having to pay your second wage bill after having had revenue cut by 90% and with the furlough scheme yet to kick in.
Thanks for that CWG. Yes I had a quick look myself after originally posting. Looks like they will hopefully be in touch mid May.
He moved house just before lockdown so will have to inform them of change of address
He never thought of that 😂
I know of a business in Edinburgh that has managed to get the 10k grant. So they are working in it. Hopefully yours won't be long in coming.Quote:
Originally Posted by Smartie
I’ve just found out that in year 18/19 he bought a van, which is a capital expenditure, thereby reducing his profits to a negligible amount. 18/19 was his first full year of tradingQuote:
Originally Posted by CropleyWasGod
He has made a lot more in year 19/20
Am I correct in saying that he will not now get any money from HMRC due to this ?
Nightmare, perfectly good tax advice at the time, but now an albatross around his neck.Quote:
Originally Posted by hibeg
It's based on your three year average trading profit between 16/17 to 18/19 so unfortunately looks like he'll only get a 1/3rd of the profit he made in 18/19.
Id suggest getting his 19/20 return submitted pronto in the hope that he can maybe use those figures in an appeal if they're allowed at any point.
I think however, he might be in for bad news.
I don't know the answer to that. There will be many who have taken advantage of one-off reliefs in one of the years on question, which will skew their average.Quote:
Originally Posted by hibeg
I can see a lot of appeals being made, on those grounds alone.
Thanks for that mate. Yes it does seem unfair in a way. He is working on his 19/20 return now !!Quote:
Originally Posted by Onceinawhile
It won't be a 1/3 of his 18/19 profit. 18/19 will be used as his average.Quote:
Originally Posted by Onceinawhile
Thanks CWG. Yes as stated he only has 18/19 to work on and has hardly any profit because of van purchase.Quote:
Originally Posted by CropleyWasGod
If they would accept 19/20 figures then that would make a big difference
Obviously there are going to be many losers with similar situations I would guess.
Hopefully HMRC may update to include 19/20 returns, but I doubt it at the moment.
There may be a problem with using 19/20 Returns.Quote:
Originally Posted by hibeg
It's quite feasible for someone to put in a high income for the 19/20 Return, purely to get a large payout. Then, just before the deadline next January, put in an amended Return with much lower income. By that time, things may be back to normal and the trader could afford to pay back any overpaid help.
I think that HMG have spotted this potential scam, hence why 19/20 won't be used, other than in exceptional cases.
I never thought of that, but makes sense.
I thought once you submitted your return, it was set in stone
I’m PAYE by the way so every days a school day 😂
For those of you who are small company owners, this might be of interest.
https://petition.parliament.uk/petitions/310515
There's also a Facebook page, which will keep you up to date with how the campaign is going.
https://m.facebook.com/story.php?story_fbid=121317189535845&id=1035150046 49397
The Government gateway site is up for folk who want to make a claim.
You cant make a claim until the 13th but think the site is up so people can ensure they have a login sorted.
A claim for what?Quote:
Originally Posted by BroxburnHibee
Thought they were getting into contact with us first about payments to be made in June.
That's what I thought too. I registered just in case.Quote:
Originally Posted by DH1875
Quote:
Originally Posted by BroxburnHibee
As I understand it (and the new web-page isn't clear) they are to contact you with their calculation of how much you're due. That contact process is starting today.Quote:
Originally Posted by DH1875
The "claim" is you going online and confirming your agreement, and giving them your bank details.
So should I be doing anything just now or wait until they contact me.
I'd say nothing just now, but give it until the 13th.Quote:
Originally Posted by DH1875
TaQuote:
Originally Posted by CropleyWasGod