Coronavirus self employed payment

[Alan Smart]

Anyone else not happy with 80% of profit payments to self employed, as this only covers sub contractors and not a one man band with overheads.

 

[littlespark]

Anyone else not happy with 80% of profit payments to self employed, as this only covers sub contractors and not a one man band with overheads.

I think it does. There was no mention today of being a subby, or a one man band.
I’m a one man band, with wife on backing vocals.
I’d be happy with 80%, but as my profit hasn’t been brilliant last 2 years anyway, I’m not expecting much.

 

[Baddegg]

Anyone else not happy with 80% of profit payments to self employed, as this only covers sub contractors and not a one man band with overheads.

I think it covers sole traders, add the payment to ya 20/21 returns deduct any overheads/running costs pay tax on what’s left....seems fair except the June bit!

 

[snowhead]

As above Yes, it covers anyone who is Self Employed unless they are also an Employee and earn more from that.
Or S/E and over the £50000 earnings limit

 

[Alan Smart]

So tell me, I have a van £250 month, part p payment £550 van tax insurance, liability insurance tool insurance of which all comes out monthly, 80% of profit doesn’t take that into account.
if you are a sub contractor you don’t have to pay out for anything like a 1 man band to run a business.
it’s not a true reflection of profits for a company.

 

[littlespark]

profit is income minus expenses, so I see what you’re saying. We are expected to pay those expenses out of the 80% of the profit govt will give us.
I’m sure it will all straighten out come jan 2021

 

[Andy78]

I take it you're on about running costs that are still active whilst not trading ? I'd give all those debts a call and ask for leniency and a payment break, especially on your van which seems your largest outgoing.

 

[Alan Smart]

profit is income minus expenses, so I see what you’re saying. We are expected to pay those expenses out of the 80% of the profit govt will give us.
I’m sure it will all straighten out come jan 2021

I doubt it, I’ll be bankrupt by the time the economy picks up again. I won’t have money to pay part p or my van, so I will have to cease trading.

 

[davesparks]

So tell me, I have a van £250 month, part p payment £550 van tax insurance, liability insurance tool insurance of which all comes out monthly, 80% of profit doesn’t take that into account.
if you are a sub contractor you don’t have to pay out for anything like a 1 man band to run a business.
it’s not a true reflection of profits for a company.

If you're not happy with 80% you don't have to claim it, you can choose to take 0% if you prefer.

Defer your part P scheme payment until a later date an dthat will save you £550

 

[Alan Smart]

I think it does. There was no mention today of being a subby, or a one man band.
I’m a one man band, with wife on backing vocals.
I’d be happy with 80%, but as my profit hasn’t been brilliant last 2 years anyway, I’m not expecting much.

My Mrs has neurological problems and she can’t work anymore, it’s been a tough 10 years with the recession and Brexit putting a hold on things, the Mrs getting worse now this. ---- it all, I’ve just about had it.

 

[Baddegg]

My Mrs has neurological problems and she can’t work anymore, it’s been a tough 10 years with the recession and Brexit putting a hold on things, the Mrs getting worse now this. ---- it all, I’ve just about had it.

Mate all I can I say is it’s s£&t for all of us but if you’ve been strong enough to cope with that and run a business I’m sure you are the sort of person to come through it and good luck ?

 

[buzzlightyear]

It's OK for them to say wait till June July or next year, I'm in the same boat up orenoco with out a paddle I did not cause this mess so when I'm fit and well I will out and about soon. i can't see this virus ending soon it will be next year before you see the white doves flying over Dover.

 

[Alan Smart]

Mate all I can I say is it’s s£&t for all of us but if you’ve been strong enough to cope with that and run a business I’m sure you are the sort of person to come through it and good luck ?

Cheers mate, I’ve been through a lot more, I won’t bore you.
I just hope the government see where they have got this wrong for more than 5% of the self employed business owners, as we are not all sub contractors.
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It's OK for them to say wait till June July or next year, I'm in the same boat up orenoco with out a paddle I did not cause this mess so when I'm fit and well I will out and about soon. i can't see this virus ending soon it will be next year before you see the white doves flying over Dover.

Yeah Boris said we have asked you to stop work and we are paying you to stay at home, he ain’t paying to keep my business in limbo like he has all those big corporate organisations.

 

[SparkyChick]

My Mrs has neurological problems and she can’t work anymore, it’s been a tough 10 years with the recession and Brexit putting a hold on things, the Mrs getting worse now this. ---- it all, I’ve just about had it.

Alan,

Right now, the guidance from government allows us to work in peoples homes. As much as many people think this is wrong, and it exposes you (and consequently your wife) and your clients to an increased risk, the risk can be greatly reduced if you take appropriate precautions.

There is a lot of social guilt tripping going on but the fact is, the economy cannot just stop. If it did, it would be complete disaster. The purpose of these restrictions it not to stop the spread of the virus, they are just there to slow it's spread.

I cancelled everything at the start of the week based on the original guidance but it has been reviewed and we can continue to work. I'm reassessing and will, if the customers want to proceed, probably start working again either next week or the week after.

As has been said, talk to your scheme and any one else that is expecting payments. The chancellor also said that the self employed can claim the 80% and can continue to work, and they can gain access to other financial support (I think the business interruption loans are included in this).

There's a lot of people in the same boat, me included, and it is a very scary time. Do what's right for you and if that is working, just take the right precautions and stay safe. I suspect like me, you don't really want to be working at this time because of the risks, but it is what it is.

And don't forget there are plenty of people you can talk to for support.

 

[HappyHippyDad]

I'm happy with 80% of my average profit over the last 3 years. I've declared my earnings properly over the last 3 years so I will get a decent payout. Those who do lots of cash jobs and don't declare them won't and that is fair.

It's a difficult situation, the government has been late in explaining what it plans to do for the self employed but they have at last offered a good package. Now we just need to stay alive to claim it .

Total average chance of staying alive over next few weeks if aged below 60 =

1 - (Chance of catching virus = 60% (0.6) x Mortality rate for adults below 60 = 4% (0.04) )

i.e. 1 - (0.6 x 0.04) = 0.976

Therefore I have a 97.6% chance of staying alive to claim my payout.

I have now scared myself with my silly statistics and am going to drink beer!