Self employed income support scheme

[littlespark]

Out of interest, are these schemes some sort of loans that you have to pay back in the fullness of time, or are they paid back through your tax returns etc?

It’s labelled as a grant. (Not a loan)
and I think everyone will be paying for this for some time with increases in tax across the board.

 

[Risteard]

Out of interest, are these schemes some sort of loans that you have to pay back in the fullness of time, or are they paid back through your tax returns etc?

As @littlespark points out it is a grant.

It is, however, taxable income.

 

[Baddegg]

I assume you’ll just have to declare it on 20-21 tax return as income and pay tax as relevant......the bigger question of repayment as a whole can only be higher taxes in the future...

 

[buzzlightyear]

The monies the government has given away
to company's ferlong they staff they will need to put the taxes up and vat and I don't blame them, its better to do that having a lot of peaple on the dole.

 

[Risteard]

they will need to put the taxes up and vat

The problem with that is that putting VAT up would have exactly the wrong effect when trying to encourage people to spend again. To revive the economy decreasing VAT would be more sensible than increasing it.

 

[Bob Geldoff1234]

It really all depends on how much your yearly profit is as to how much your going to get.So if your profit is only £5000 per year then 80% of £5000 is £4000.Divided by 12 is £333.33.Times that by the 3 months they are allowing you is £1000.

So if you have not been to work for the 3 months that they are allowing you then the money the government give you will equate out to £83 a week.
Not to be sneezed at but hardly a big enough amount to live on.

Obviously if you have paid more tax then you'll get more.

 

[Andy78]

It really all depends on how much your yearly profit is as to how much your going to get.So if your profit is only £5000 per year then 80% of £5000 is £4000.Divided by 12 is £333.33.Times that by the 3 months they are allowing you is £1000.

So if you have not been to work for the 3 months that they are allowing you then the money the government give you will equate out to £83 a week.
Not to be sneezed at but hardly a big enough amount to live on.

Obviously if you have paid more tax then you'll get more.

In addition to that the grants are not dependant on you having a lack of work. It was made clear when these were announced you could continue to work and still claim the grant.

The payments are based on your last three years tax returns worked out as a monthly average, multiplied by 80%, with a maximum payment of £2500 a month.

 

[mattg4321]

You have to confirm your business has been adversely affected by coronavirus.

There's no further guidance on this, but it's assumed that if your profits are even a few £ lower than normal you'll qualify. If you've made more this year then you won't - however unlikely that is.

LINK

 

[Andy78]

You have to confirm your business has been adversely affected by coronavirus.

There's no further guidance on this, but it's assumed that if your profits are even a few £ lower than normal you'll qualify. If you've made more this year then you won't - however unlikely that is.

LINK

It's a weird one for sure. How do I collect evidence of no work ?

I could show them my tax return that will only be available to file in 11 months time ?

 

[Risteard]

It's a weird one for sure. How do I collect evidence of no work ?

I could show them my tax return that will only be available to file in 11 months time ?

It's just a simple declaration. As you allude to, a rather pointless one at that.

 

[littlespark]

Ok, I got a reply back from my accountant stating this.....

"In relation to your query, I think the reason you are not eligible may be due to your self-employment profits not being more than 50% of your total taxable income....."

Someone want to translate that into English for me....

Not so fast, Buzz...

 

[buzzlightyear]

you are not eligible may be due to your self-employment profits not being more than 50% of your total taxable income....."

What they are saying king midus you did not put any monies in the pot, keeped it to your self. Lol

 

[littlespark]

I’ve paid plenty into the pot over the years, sometimes at the high rate.

UC better be worth my while claiming

 

[davesparks]

Ok, I got a reply back from my accountant stating this.....

"In relation to your query, I think the reason you are not eligible may be due to your self-employment profits not being more than 50% of your total taxable income....."

Someone want to translate that into English for me....

Not so fast, Buzz...

The grant is only available to those people who have a self employed income which makes up more than 50% of their total income for a tax year.

 

[Midwest]

The grant is only available to those people who have a self employed income which makes up more than 50% of their total income for a tax year.

I would of got jack pohh then!