Help for Self-Employed during Covid-19 Help for Self-Employed during Covid-19
Posts 1 to 3 of 3
  1. #1

    Nervous Newbie


    Join Date
    Feb 2020
    Posts
    11

    Lightbulb Help for Self-Employed during Covid-19

    Hi all

    I wonder how HMRC will total our salaries over the last 3 years?

    Will they include the DR loan amounts as part of our 'salaries' which we are now having to pay tax on (or at least some of us are in the midst of doing), or just our taxed income to date.

    Can they take with one hand and not give with the other for those of us that are settling?

    Probably an unknown right now but would be interesting to know your thoughts.

    Indeed, there is a £50k profit cap, but still, there could be a big difference to the grant one receives.

  2. #2

    More time posting than coding


    Join Date
    May 2014
    Posts
    409

    Default

    Quote Originally Posted by bear1 View Post
    Hi all

    I wonder how HMRC will total our salaries over the last 3 years?

    Will they include the DR loan amounts as part of our 'salaries' which we are now having to pay tax on (or at least some of us are in the midst of doing), or just our taxed income to date.

    Can they take with one hand and not give with the other for those of us that are settling?

    Probably an unknown right now but would be interesting to know your thoughts.

    Indeed, there is a £50k profit cap, but still, there could be a big difference to the grant one receives.
    Are you a PSC that took salary and dividends ? If so, you get nothing. Those who took / take dividends are not covered. Search dividends in the link below.

    Chancellor gives support to millions of self-employed individuals - GOV.UK


    Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.
    Last edited by regron; 26th March 2020 at 18:35. Reason: missed dividends out
    STRENGTH - "A river cuts through rock not because of its power, but its persistence"

  3. #3

    Super poster


    Join Date
    Aug 2008
    Location
    South East
    Posts
    2,445

    Default

    Quote Originally Posted by regron View Post

    Those who pay themselves a salary and dividends through their own company are not covered by the scheme but will be covered for their salary by the Coronavirus Job Retention Scheme if they are operating PAYE schemes.
    So all we have to do is furlough ourselves then if our clients have stopped our work? But not being an employee the director cannot be furloughed. Will be interesting to see what the accountants will advise us regarding the "will be covered for their salary ... IF..."
    This default font is sooooooooooooo boring and so are short usernames

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •