Categories
Covid-19

Coronavirus Self-employment Income Support Scheme

So 72hrs have now passed since the Governments Self-employed Support scheme was announced, here are the Key facts:

Self-employed people will be invited to apply for a taxable grant worth 80% of their average monthly Net profits over the last three years, up to £2,500 a month. Only 20% of this grant needs to be paid back, next year.

(If you have only completed one Tax return then it will only be based on one, if you have two then it will be based on two etc.)

Your Net profit is your total income minus your total expenses, if you claimed a large tax rebate, you will have lower net profits, than someone on a similar income who received a lower tax rebate.

The more you claimed then, the less you get now!

Use this calculator to see how much you could be eligible to receive: https://njb-taxback.co.uk/help/self_employed_ssp_calculator

HMRC have asked that People do not contact HMRC. You can not apply for this grant, HMRC will contact you directly if you are eligible.

You can still work and claim the full entitlement to this Grant.

You can still complete your 19.20 return as normal, it may take slightly longer to receive your repayment, purely due to the higher than normal amount of submissions.

If you are out of work now, you will be able to claim employment and support allowance (ESA) and/or Universal Credit. This will not affect your eligibility for the grant or the amount you receive.

The weekly payment for ESA is typically £73.10 or £57.90 for people under the age of 25.
https://www.gov.uk/employment-support-allowance

The payments for Universal Credit have been temporarily raised so that the self-employed receive the same amount as someone on statutory sick pay (£94.25 a week).
https://www.gov.uk/universal-credit

You can not still work and claim the full entitlement to these benefits, if you return to work you must update your benefit claim.

You must apply as a couple if you live with a partner, even if you are not married. Your partner’s income may affect your eligibility.

If you had a universal credit account before, you do not need to go through the full application again, you should be able to reapply through your existing account.

Small business reliefs and loans: A “Small Business” is defined by having a minimum of six employees, if you are a sole trader with less than 6 employees, you are a micro business

A lot of questions being raised about this year being your first year as self-employed and the grant requires an 18.19 return.

We firmly believe, as do many other accountants, and as was discussed during a BBC question time interview.

HMRC have suggested that people with less than 12 months accounts would be looked at based on what they have?

Assuming your 19.20 return is submitted ASAP, then HMRC will have a full set of 12 months accounts to review.

Please remember that this scheme is brand new and the eligibility criteria are based on the 5.3 million self-employed workers as a whole, it is not based on each and every individual case.

As long as you are fair, genuine and can submit a genuine application to be reviewed, we do believe that HMRC will allow some bending of criteria to accommodate.

This scheme is all about fairness and parity, as long as you are fair, you will be fine.

For the time being construction sites are allowed to remain open, although we expect this to change soon.

If you are an Essential worker you are legally allowed to work if you choose to, and can remain more than 2 meters apart.

If you are an Essential worker you also are not legally required to work, if you choose not to.

If you are not an Essential worker you must stay home.

For the time being, remain patient, sit tight, stay healthy and stay home.

A Big Thankyou to more than 500,000 people who have come forward as NHS Volunteers.

Categories
Covid-19

Coronavirus Self-employment Income Support Scheme

Use this calculator to see how much you could be eligible to receive:

https://njb-taxback.co.uk/help/self_employed_ssp_calculator

How do I claim the help?

HM Revenue and Customs (HMRC) will use existing information to identify those eligible and will invite applications

The application will require them to confirm that they meet the eligibility requirements

The taxable grant will be paid straight into a bank account, which eligible taxpayers will need to confirm on their application form.

The taxable grant, backdated to March, will arrive directly into people’s bank’s accounts from HMRC, but not until June.

HMRC have asked that People do not contact HMRC. If they are eligible HMRC will contact them directly

For the time being, remain patient, sit tight, stay healthy and stay home.

A Big Thankyou to more than 500,000 people who have come forward as NHS Volunteers.

Categories
Covid-19

Coronavirus Self-employment Income Support Scheme

A lot of questions being raised about this year being your first year as self-employed and the grant requires an 18.19 return.

Also regarding the 50% self-employment income.

We firmly believe as do many other accountants, and as was discussed during a BBC question time interview.

HMRC suggested that people with less than 12 months accounts would be looked at based on what they have?

Assuming your 19.20 return is submitted ASAP, then HMRC will have a full set of 12 months accounts to review.

Please remember that this scheme is brand new and the eligibility criteria are based on the 5.3 million self-employed workers as a whole, it is not based on each and every individual case.

As long as you are fair, genuine and can submit a genuine application to be reviewed, we do believe that HMRC will allow some bending of criteria to accommodate.

This scheme is all about fairness and parity, as long as you are fair, you will be fine.

Also regarding the 50% self-employed Income, if you were PAYE for more than 50% of the year, with various different companies, on a ZERO hour contract.

Then this should not be counted towards the 50% self-employment income rule, and you would not eligible for the PAYE net pay scheme.

Again open to interpretation and can always be appealed and reviewed.

There will be 100,000s of people to which this applies, and I am quite confident in saying, you won’t be left out.

To see how much you may be eligible to receive please check out this calculator:

https://njb-taxback.co.uk/help/self_employed_ssp_calculator

For the time being, remain patient, sit tight, stay healthy and stay home.

A Big Thankyou to more than 500,000 people who have come forward as NHS Volunteers.

Categories
Covid-19

Coronavirus Self-employment Income Support Scheme

The chancellor, Rishi Sunak, has unveiled an emergency support package to protect Britain’s 5 million self-employed workers.

It will be called the Coronavirus Self-employment Income Support Scheme

Under the scheme, Self-employed people will be able to apply for a grant worth 80% of their average monthly Net profits over the last three years, up to £2,500 a month.

(If you have only completed one Tax return then it will only be based on one, if you have two then it will be based on two etc.) 

Your Net profit is your total income minus your total expenses, if you claimed a large tax rebate, you will have lower net profits, than someone on a similar income who received a lower tax rebate. 

The more you claimed then, the less you get now! 

By the time the scheme becomes available anyone who has submitted their 19.20 return, which can be completed on the 6th of April 2020, should have those figures included in HMRC’s assessment.

To be eligible for the scheme you must: 

  • Have Net profits are under £50,000 a year
  • completed at least one self-assessment return by the time of the eligibility assessment, if this is your first year in self-assessment then you need to get the 19.20 return filed as soon as possible.
  • At least half their income needs to have come from self-employment as registered on the 2018-19 tax return filed in January – anyone who missed the filing deadline has four weeks from now to get it done and still qualify.
  • Late tax filers who complete their forms in the next four weeks will also be contacted by HMRC directly. The fines that were due in May for those who did not file in January will be wiped.

Unlike the employee scheme, the self-employed can continue to work as they receive support.

The level of profit loss during the three month period would not be calculated, so whether someone lost 5% or 100% of profit because of the coronavirus, they were still entitled to an 80% grant

  • The money, backdated to March, will arrive directly into people’s bank’s accounts from HMRC, but not until June.
  • The grants will be taxable and will need to be declared on tax returns by January 2022.
  • The support will not be available until June. 

You can use this calculator to see how much you may be eligible to receive:
https://njb-taxback.co.uk/help/self_employed_ssp_calculator

To stop the gap until that time the Government has said self-employed people can apply for help via the benefits system:   

  • Should their income dry up, they will be able to claim employment and support allowance (ESA) and/or Universal Credit. The weekly payment for ESA is typically £73.10 or £57.90 for people under the age of 25.
  • The payments for Universal Credit have been temporarily raised so that the self-employed receive the same amount as someone on statutory sick pay (£94.25 a week). 
  • The Government has also said it will make it quicker and easier for people to access these benefits.
  • Mortgage and rental holidays available for up to three months.
  • Local authorities are also set to get a £500m hardship fund to provide vulnerable people with council tax payment relief.

How do I claim the help?

  • HM Revenue and Customs (HMRC) will use existing information to identify those eligible and will invite applications
  • The application will require them to confirm that they meet the eligibility requirements
  • It will be paid straight into a bank account, which eligible taxpayers will need to confirm on their application form
  • HMRC have asked that People do not contact HMRC. If they are eligible HMRC will contact them directly

https://www.bbc.co.uk/news/business-52052123

https://www.theguardian.com/world/2020/mar/26/coronavirus-uk-offers-self-employed-80-of-earnings

Categories
Covid-19

Self-Employed Help!

Self-Employed Help!

What to take from today’s announcement.

If you are self-employed with profits of up to £50k and who have been adversely affected by the coronavirus, a taxable grant worth 80% of their average monthly profits over the last 3 years, up to £2,500 per month.

https://njb-taxback.co.uk/help/self_employed_ssp_calculator

Open for at least 3 months across the UK, Extended if necessary.

It is only for those who are already in self-employment and who have a tax return for 2019, if your 18.19 return is still overdue, you have four weeks now to submit the return in order to remain eligible for the grant.

The first payment will likely come in around June and would be backdated to include all amounts due up to that point.

With regards to average over 3 years, if you have only completed one Tax return then it will only be based on one, if you have two then it will be based on two

More updates to follow, please check out our calculator to see how much may be available to you.

Categories
Covid-19

COVID-19 UPDATE FOR SELF-EMPLOYED & CIS SUBCONTRACTORS

There are no changes to report this morning, the 80% Net Pay support package has not yet been finalised.

We can expect a Government update by the end of the week

As of now Universal credit and ESA along with Mortgage relief and Renter’s protection remain about the only Government assistance on offer.

Update to Universal Credit: Waiting queue number is more than 130,000 it is almost impossible to get through. It will then take approximately 5 weeks to receive a payment.

You must apply as a couple if you live with a partner, even if you are not married. Your partner’s income may affect your eligibility.

If you had a universal credit account before, you do not need to go through the full application again, you should be able to reapply through your existing account.

MOT Update: All cars, vans and motorcycles which would normally require an MOT from March 30 will have the requirement deferred for six months under a new law which will remain in place for 12 months.

Drivers can still be prosecuted if their vehicles are unsafe and the government says mechanics will remain open for “essential repair work”.

NHS Staff: Parking charges for NHS staff will be lifted while they fight the coronavirus outbreak, the Government has said, with the move following a public outcry.

NHS workers will also be able to park for free in council-owned car parks and parking bays, and Matt Hancock, the Health Secretary, said the move was in response to the “unprecedented challenge” faced by the NHS.

For the time being construction sites are allowed to remain open, although we expect this to change soon.

You are legally allowed to work if you choose to, and can remain more than 2 meters apart.

You also are not legally required to work, if you choose not to.

Most suppliers will be shutting soon, which will force closure in most cases.

For the time being, remain patient, sit tight, stay healthy and stay home.

A Big Thankyou to more than 500,000 people who have come forward as NHS Volunteers.

Categories
Covid-19

COVID-19 UPDATE FOR SELF-EMPLOYED & CIS SUBCONTRACTORS

There are no changes to report this morning, the 80% Net Pay support package has not yet been finalised.

As of now Universal credit and ESA along with Mortgage relief and Renter’s protection remain about the only Government assistance on offer.

Update to Universal Credit: you must apply as a couple if you live with a partner, even if you are not married. Your partner’s income may affect your eligibility.

For the time being construction sites are allowed to remain open, although we expect this to change soon.

You are legally allowed to work if you choose to and can remain more than 2 meters apart.

You also are not legally required to work, if you choose not to.

Most suppliers will be shutting soon, which will force closure in most cases.

For the time being, remain patient, sit tight, stay healthy and stay home.

Categories
Covid-19

COVID-19 UPDATE FOR SELF-EMPLOYED & CIS SUBCONTRACTORS

Update: https://publications.parliament.uk/pa/bills/cbill/58-01/0122/amend/coronavirus_daily_cwh_0320rev.14-18.html?fbclid=IwAR2Wyypb7kd79zmUnIpQOSgF8lFxngxORw7aBn-iJjifo0wsHkgsORlhx0E

This bill is being discussed in Parliament it has not yet been passed and there are no further details available yet.

We can not confirm or discuss anything other than what’s written hear, this information is still subject to change and we would advise not to commit to anything until this bill is passed.

(Please see the previous post for full details of the proposed amendment)

Lockdown, a ban on all non-essential gathering, journeys etc. is now to be enforced.

For the time being construction sites are allowed to remain open, although we expect this to change soon.

Most suppliers will be shutting soon, which will force closure in most cases.

For the time being, remain patient, sit tight, stay healthy and stay home.

Categories
Covid-19

FINALLY Statutory self-employment pay

FINALLY Statutory self-employment pay

1). The Secretary of State must, by regulations, introduce a scheme of Statutory Self-Employed Pay.

2). The scheme must make provision for payments to be made out of public funds to individuals who are:
• Self-employed, OR• Freelancers

3). The payments to be made in subsection (2) are to be set so that the net monthly earnings of an individual specified in subsection (2) do not fall below—
• 80% of their monthly net earnings, averaged over the last three years, OR• £2,917
whichever is lower.

4). No payment to be made under subsection (2) shall exceed £2,917 per month.

5). A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.

https://publications.parliament.uk/pa/bills/cbill/58-01/0122/amend/coronavirus_daily_cwh_0320rev.14-18.html

Categories
Covid-19

COVID-19 Self Employed Gov Assistance

Update in response to Facebook change.org self-employed petition:

This is only a petition that’s going around, and one that would be extremely difficult, if not impossible to implement accurately.

While the we can expect an update on Government self-employed support soon, this petition has not yet been discussed in parliament.

It may be worth remembering that if such a petition would be actioned, the amount the Government would likely agree as your income would be your net profit, (Total earnings – Total expenses)

So it may be worth having a second glance over the expenses this year, before claiming for things that may not be allowable!
as this would reduce your net profit and any net profit based assistance.

Update to Universal Credit: you must apply as a couple if you live with a partner, even if you are not married.

Update to Small business reliefs and loans: A “Small Business” is defined by having a minimum of six employees, if you are a sole trader with less than 6 employees, you are a micro business

Currently, for Sole Traders and CIS subcontractors, there is very little government assistance other than an increase in universal credit and earlier access to ESA.

For 95% of my clients, that’s all the help available at this time.

https://www.gov.uk/universal-credit
https://www.gov.uk/employment-support-allowance

If you are due a tax rebate, you will of course still get it, there may be a slight delay with everything going on and the easter bank holiday but there will not be any major changes, it is business as usual.

With regards to delayed self-assessment payment, this is the second payment on account for 19.20 that can be delayed, if you do not pay tax bills at the end of the year, this will not help you.

It does not delay payment of your 18.19 Tax bill which was due in full by the 31st of Jan 2020.

If you are employed on a Zero hour contract you will not be assisted with the 80% pay protection, if you are self-employed you will not be assisted with the 80% pay protection. If you are not a small business and do not pay business rates you will not have access to grants for businesses.

if you are not VAT registered and do not pay VAT, delaying the VAT payment will not help you

More updates to follow.