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For self-employed, the HMRC guidelines say they will contact you if you are eligible when they are ready for you to apply. They have said you will be eligible even if you carry on working, provided you have a drop in income. It remains to be seen what evidence they will require, but that might be one of the reasons they are delaying the process until June.
For those of us working through one or two employee limited companies, the self-employed support will obviously not apply. On the face of it, the Job retention scheme for companies might be applicable. However, to qualify, employees have to be “furloughed” and must do no work for the company while laid off. So the company would effectively have to close down completely, maybe relying on the company’s independent accountant to take over the admin, including taking over the bank account, paying the wages and doing all the form filling for HMRC. In my case, I don’t have an accountant, so I am considering putting my 18 year old son on the payroll to keep the company ticking over while my wife and I are furloughed.
stratfordgirl wrote:
I am considering putting my 18 year old son on the payroll to keep the company ticking over while my wife and I are furloughed.could this be classed as creative accounting ?
Dave
It’s a pragmatic solution to the constraints of the emergency scheme. Why should micro companies lose out when self-employed are taken care of? My son’s already registered as an employee as he did some development work a couple of years ago on our social media. He’s more than capable of monitoring our emails, running our RTI and processing our HMRC returns. A good opportunity to apply his sixth form studies in IT and Business, now pretty much come to a full stop. Only two customers have yet to pay and we’ve settled all our accounts other than those on direct debit, so there will be very little banking involved. For me, It’ll be a useful sabbatical.
HM treasury have confirmed that company directors can furlough themselves and will still be permitted to carry out their statutory duties, eg submitting accounts, while on furlough:
https://www.cbi.org.uk/articles/daily-coronavirus-webinar-job-retention-scheme-27-03-2020/
I am a one man limited company. I take a wage, my wife takes a wage and we take a dividend each month.
Reading the article above, if we wish to claim the 80{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} then I have to declare that I cannot do any work.
I have only done three calls this last week, all for cooker repairs for vunerable elderly existing customers.
There must be thousands of micro companies such as mine with the same dilemma.
The government have made a bit of a blunder on this, which will create unintended consequences. Self-employed will receive support (eventually), even if they carry on working. Directors of micro-companies only qualify if they stop working completely, not great for the nation or the economy.
My wife and I are furloughed from tomorrow (formalised in writing). Our phone lines are switched through to an answerphone message, advising callers that we are closed, likely for at least the next two months, emails are being diverted to my son, who’s back on the payroll on a minimal salary. It’s a crazy situation, but in business, difficult choices have to be made.
How badly effected are people who are still trying to work? Ive gone from around 25 jobs a week to around 3-5! I’m just hoping it will pick up again when it’s run it’s course but have to admit I’m very concerned. On the flip side a mate who runs a health shop has never been busier but some of the purchases I can’t really imagine are essential?!
Yep very quiet out there, no jobs today, 3 tomorrow and nothing lined up for the rest of the week.
I have a bag of parts that I’ve ordered for people that there now too scared for me to fit. Funny as they were all asking how quickly I can get the parts before Covid19.
I read that sales of appliances from Currys have gone up 24 per cent.
When machines go wrong people for some reason think it’s easier / safer to replace than repair.
Apparently it will take 12-18 months before a vaccine is found so I wonder how quickly this industry will take to recover
boselecta wrote:Apparently it will take 12-18 months before a vaccine is found so I wonder how quickly this industry will take to recover
I don’t think there are many that will walk away from this unscathed and depending on how it’s handled we could face a full-on depression. Even with the “handouts” on offer, it won’t save as many as I believe people think it might.
If they throw in the B word and don’t handle that well (I’m not exactly confident), it has the potential to almost send the economy back decades.
It strikes me that many, many people haven’t yet grasped what an absolute cluster “mess” all this is. For everyone.
K.
when the hysteria all dies down the economy will be little more than junk. its worth seeing what Trevor Kavanagh or Peter Hitchens say about this. news today predicting that 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} of small to medium businesses will not survive, I fear everything will have changed permanently. how many of you have been brave enough to look at your pension investments and see what a hit they have taken?
wilf
I gathered people are probably just replacing it , how that is any safer is debatable given most will need it installing, I just hope the trend doesn’t last too long.
That will only last so long before cash runs out just as being warned of here:
https://www.bbc.co.uk/news/business-52114414
K.
I’m still trying to work. Have completed two jobs this week and nothing else is currently booked.
The phone just isn’t ringing.SWERV wrote:I’m still trying to work. Have completed two jobs this week and nothing else is currently booked.
The phone just isn’t ringing.your not alone there. people are afraid especially if they have older people in the house. got 2 jobs tomorrow and have got one to go to when lock down finishes as person on the house has COPD
will get a lot of tidying done and a chance to root out obsolete spares and dump themDave
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