Being self employed and the coronavirus

[Gavin John Hyde]

Got a carpenter friend who I have been discussing this with. He said he is also worried about work drying up as he's got a 2 year old kid and girlfriend is pregnant.
He said he looked at his insurance policies and doesn't think due to the wording that he would be covered if he got the corona virus as if he did get it and makes a recovery as he would have had the illness for less than 30 days I think it was. it won't pay out as its for long term sick and injury cover and isn't a specified condition.. If he got it and died his family get 25k cash. He said that if work does go really bad then he would be better off having an '' accident '' and have a broken arm or leg as then he gets 5k tax free!
I don't advocate insurance fraud but I can see his thinking in the current climate.. I get a couple grand on mine if I break an arm or leg bone. Certainly makes you wonder how good these insurance policies for I come etc really are.

 

[Risteard]

Got a carpenter friend who I have been discussing this with. He said he is also worried about work drying up as he's got a 2 year old kid and girlfriend is pregnant.
He said he looked at his insurance policies and doesn't think due to the wording that he would be covered if he got the corona virus as if he did get it and makes a recovery as he would have had the illness for less than 30 days I think it was. it won't pay out as its for long term sick and injury cover and isn't a specified condition.. If he got it and died his family get 25k cash. He said that if work does go really bad then he would be better off having an '' accident '' and have a broken arm or leg as then he gets 5k tax free!
I don't advocate insurance fraud but I can see his thinking in the current climate.. I get a couple grand on mine if I break an arm or leg bone. Certainly makes you wonder how good these insurance policies for I come etc really are.

Seemingly pandemics are generally specifically excluded from them, and for those that don't exclude it Covid-19 isn't listed as it's too new. So generally speaking insurance won't cover it.

 

[Zerax]

They've banned evictions for 3 months, but after 3 months they can evict you if you failed to pay your rent during those 3 months.
They have urged landlords to be lenient and allow tenants to pay the missed rent once the crisis is over. So as work is slowly picking up again after this crisis those of us who rent will need to be earning more than ever to pay back the missed rent.

There is also an issue for landlords that rely on the rent to live...
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I personally think the American idea of £1000 monthly to everyone is a good idea. It's simple to put into place and negates the need to look into everyones financial circumstances which would take ages and cost a fortune, it is also enough for people to live on if they are frugal.

Don't forget that anyone employed by any government organisation (about 50% of the workforce)... will still get paid regardless... as I suspect will any salaried people... so it affects a relatively small number of people... So why give money to everyone ??

 

[davesparks]

There is also an issue for landlords that rely on the rent to live..

Yes there is, and those landlords need support too.
But if tenants can't pay their rent then they can't pay their rent, no matter how much a landlord needs the money.
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Don't forget that anyone employed by any government organisation (about 50% of the workforce)... will still get paid regardless... as I suspect will any salaried people... so it affects a relatively small number of people... So why give money to everyone ??

Do you have anything to support these figures? 50% of the workforce being employed by a government organisation seems unlikely.

 

[Zerax]

Do you have anything to support these figures? 50% of the workforce being employed by a government organisation seems unlikely.

It's like late 40s not exactly 50%... don't forget you need to include central government, local government, quangos, police, fire, NHS etc etc... it all adds up.

 

[pirate]

Regarding landlords, those who own their rental properties outright will have to rely on the tenant getting some assistance from the State, whereas those who have mortgages may get a "payment holiday" so the cashflow may continue for a while, but the loan still racks up...I guess it's really a question of cashflow/income for everyone.
There are many people who live within 2 bills of bankruptcy, and have no savings or other support. Just buying food for their families is going to be a real problem if they have no income. I just hope the government gets the cash to those in need quickly...

 

[suffolkspark]

I'm lucky I have money to fall back on as have been saving hard for a mortgage, my girlfriend has just lost her job in a pub though and as it was a zero hour contract cant get anything from them, I think us self employed can get universal credit if we aren't working but that's it for now. I've got a few jobs I can do in a closed leisure centre, and a very small building site, and a bit on a fruit farm which only has 2 staff, im doing the 2meter thing. I've stopped going in peoples homes.

 

[snowhead]

Don't forget that anyone employed by any government organisation (about 50% of the workforce)... will still get paid regardless... as I suspect will any salaried people... so it affects a relatively small number of people... So why give money to everyone ??

Public sector employment, UK - Office for National Statistics

The official measure of people employed in the UK public sector, including private sector estimates.

www.ons.gov.uk

Try 16.5% in the Public Sector or 5.44 million.
All of whom are still working, possibly excepting some teachers.

Just because someone is salaried doesn't mean they'll automatically get paid. look at B.A staff they've been asked to take unpaid leave as will a lot of other employees I suspect.

I was salaried for around 2/3rds of my working life, I don't remember any clause in the T&Cs saying I'd get paid if I wasn't working other than company sick pay, which this current situation wouldn't inlcude.
Very few companies could afford to do it.

 

[multimick]

my tenant works for wigan coucil ,he is at risk so is self isolating, he gets paid ,but on half salary after 1 month off

 

[peterhyper]

I just hope the part Pee organisations will allow members to freeze their memberships if they need to (without paying their monthly fees). The same applies to the advertising scams such as trustatrader and checkatrade etc.

 

[Zerax]

Try 16.5% in the Public Sector or 5.44 million.

As with anything to do with the state sector... it's all very complicated. I was referring to the widest measure of anyone to gets paid from taxpayers funds... not the narrow direct employed measure. This is the one that's relevant to the issue of the day.
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Try 16.5% in the Public Sector or 5.44 million.

As with anything to do with the state sector... it's all very complicated. I was referring to the widest measure of anyone to gets paid from taxpayers funds... not the narrow direct employed measure. This is the one that's relevant to the issue of the day.

 

[Colonel6271]

All is explained here.

COVID-19 financial support for businesses

Find out what financial support you can get for your business.

www.gov.uk

 

[EalingBadger]

It seems S/E is being looked at.
The issue they've got with payments is they're trying to use existing systems, so amongst other things they know they're paying to genuine people and not scammers, who will of course be out in their thousands.

The U.S plan of sending a cheque for every household for $1500 or so doesn't seem a good idea when all the Millionaires and Billionaires will also get them.

What is the likely ratio of Millionaires and Billionaires to ordinary Joes?

And what will this translate to in terms of the percentage of the total funds distributed?

I reckon it will be quite small and therefore does not justify the administrative overhead of trying to confirm the financial status of each citizen before sending out the cheques.

Remember, they would have to check the status of every single person, not just the Millionaires and Billionaires, so the cost would be enormous and likely dwarf any saving that might be made by identifying those subsequently judged to be not worthy.
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Yes, it's not quite as good as it seems though.
They've banned evictions for 3 months, but after 3 months they can evict you if you failed to pay your rent during those 3 months.
They have urged landlords to be lenient and allow tenants to pay the missed rent once the crisis is over. So as work is slowly picking up again after this crisis those of us who rent will need to be earning more than ever to pay back the missed rent.
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I'm sure i'm not the only self employed person who has thought about this, supermarkets etc are on a bit of a recruitment drive, they need staff in all departments at the moment. The income would be enough to keep the wolf from the door,

It makes me wish id taken the opportunity to get an HGV licence a couple of years ago, i'd be happy to spend the next few weeks driving trucks of food around.

I couldn't do a public-facing job, not because I fear catching the disease but because I just don't have the temperament for it.

Yes, technically the ban on evictions is strictly limited but I bet it will get extended as and when it becomes clear that the crisis is going to last longer.

Also, believe it or not, landlords REALLY don't like to evict. It is very stressful for all concerned, invariably costs a great deal and takes a long time to actually achieve.

And in the current climate the chances of finding a new tenant are seriously reduced.

if you are a good tenant apart from diffuclties with the rent during the current crisis then a landlord would have to be insane to evict.
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Its a good idea, but as with any plan it has it's issues.
Where does the money come from and does it have to be paid back?

It will simply be printed. Period.

(Oh to possess a printing press like one of those government ones...)
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Seemingly pandemics are generally specifically excluded from them, and for those that don't exclude it Covid-19 isn't listed as it's too new. So generally speaking insurance won't cover it.

Got an email from Nationwide this morning - paraphrasing:

We will not be paying out any insurance claims for Corvid related claims from 23/3/20 as insurance is to cover the risk of the unexpected and since the virus is now a clear reality it can no longer be considered as unexpected.

IOW, FOAD (probably somewhat more literally than usual as far as this acrynym typically goes!)

 

[davesparks]

And in the current climate the chances of finding a new tenant are seriously reduced.

A fact I'm hoping I can use to my advantage, find a new place to rent and get a lower rent because the landlord is struggling to get a tenant

 

[EalingBadger]

A fact I'm hoping I can use to my advantage, find a new place to rent and get a lower rent because the landlord is struggling to get a tenant

A case of market forces working in both directions.