Self employed

[CropleyWasGod]

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Any idea what happens for people on zero hours contract? Please.

This is as clear as I can find. From the Guardian:-

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.

[RyeSloan]

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?

[green day]

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A property development company isn't self employment either.

Fair point, went off piste a bit there

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.

[Moulin Yarns]

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This is as clear as I can find. From the Guardian:-

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.

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.

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.

[Ozyhibby]

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.


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[patch1875]

It now seems that limited company/sole directors can furlough themselves.

[CropleyWasGod]

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It now seems that limited company/sole directors can furlough themselves.

Where are you seeing that?

I have seen arguments, from good sources, for and against.

[Billy Whizz]

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Where are you seeing that?

I have seen arguments, from good sources, for and against.

I’d be interested to see where that came from too

[patch1875]

Martin Lewis

[patch1875]

Hopefully it’s true the actual gov advice doesn’t seem to say you can’t.

[CropleyWasGod]

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Hopefully it’s true the actual gov advice doesn’t seem to say you can’t.

Thanks. I've just watched it.

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.

[KeithTheHibby]

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Thanks. I've just watched it.

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?

[CropleyWasGod]

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How do you arrive at that figure CWG?

Sorry, it should be £575.

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.

[CropleyWasGod]

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.

[patch1875]

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Sorry, it should be £575.

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.

I’ve always paid myself about 1k a month so hopefully I might get a bit more.

[CropleyWasGod]

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I’ve always paid myself about 1k a month so hopefully I might get a bit more.

As salary?

[jonty]

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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.

a bit late for many.


Spill the beans

[CropleyWasGod]

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a bit late for many.


Spill the beans

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.

[jonty]

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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 companies

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

[patch1875]

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As salary?

Yes and a quarterly dividend.

[KeithTheHibby]

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Yes and a quarterly dividend.

Likewise.

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.

[Onceinawhile]

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I’ve always paid myself about 1k a month so hopefully I might get a bit more.

Then you should get 800 a month based on 1k a month salary.

[Onceinawhile]

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Likewise.

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.

At the moment, it looks likely to be 80% of the £800 and nothing for the dividends as of yet.

Hopefully your Ltd has some cash reserves and you can take a slightly higher dividend?

[CropleyWasGod]

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

[Billy Whizz]

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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 posting

[patch1875]

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.

[brianmc]

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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-fo...tention-scheme

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 if
the claim for furlough has to be done through her agency. Can you confirm any of these details. Thanks

[CropleyWasGod]

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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 if
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.

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?

[brianmc]

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

[Billy Whizz]

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