Support for the self employed.

#21
Am I right in thinking if the payments to the self-employed and this is based on profit, those that did a lot of cash jobs and didn’t declare it will be getting a lot less than they expected.
As far as I see it It goes on you average profit over the previous 3 tax returns.
So for example your annual average profit is £24'000 you get 80% of your monthly average profit which would be £1600 and its paid for 3 months as a lump sum so that would be £4800.

It is though taxable so I assume when you fill out your 2020/21 tax return you will be required to declare it as an income.

The inland revenue will contact us direct and you will be required to fill in an application form presumably online.it could be as late as June before the grant is paid


That's how I see it anyway
 
#22
Also people that pay themselves a tiny wage then take the rest as dividends are pretty screwed as well. I suspect there is going to be a lot more profitable companies at the end of this tax year i suspect.
Self employed fill out self assessments you only declare a annual profit.people who pay themselves a small wage and then claim large dividends have to have a limited company.I may be wrong but I dont think this new scheme covers limited companies.
 
#24
I'm in the same boat Redpete. My immediate thoughts are 1) happy for those employees who get the 80% 2) I wish universal basic income had been implemented years ago, and things could be a lot simpler now and 3) the limit of £2500 per month is too high - people should not need that much to "survive" on, it should be shared out more
Far too high I think. Do you pay tax on that?
That's £500 more than I get a month when I'm not surviving.
 
#25
Self employed fill out self assessments you only declare a annual profit.people who pay themselves a small wage and then claim large dividends have to have a limited company.I may be wrong but I dont think this new scheme covers limited companies.
theyll be able to claim 80% of the wage they pay themselves id of thought, the minimum wage they pay themself will go through a payroll so they are employees of their company
 
#28
theyll be able to claim 80% of the wage they pay themselves id of thought, the minimum wage they pay themself will go through a payroll so they are employees of their company
That may well be the case but that is through the PAYE scheme announced last week and not the self employed scheme announced yesterday.
 
#30
Anyone paying themselves dividends are not self employed, it's a Ltd co and they are employees.
Any one " not declaring" profits will have there payment from the govt based on there "declared " income.
The dividend issue is a legal but unethical tax avoidance scheme, tough, your support will be based on 80% of your " wages".
Any one not declaring income is essentially a thief, who has been robbing the system by not declaring income. Again, sorry but tough.
 
#31
Wouldn't be surprised if you see a lot of amended tax returns get submitted now for last tax year.

I know a few lads who are gutted because they fiddle their accounts to reduce their profits - thereby reducing their tax......so they're going to get nothing from this scheme compared to what they're used to living off.

Karma works in mysterious ways.
 
#32
surely the issue here is getting "some" money to live on. its not about getting the "max". surely people can be grateful just to get 80% of their self- declared (after all) profit, regardless of how it was arrived at?
 
#33
Wouldn't be surprised if you see a lot of amended tax returns get submitted now for last tax year.

I know a few lads who are gutted because they fiddle their accounts to reduce their profits - thereby reducing their tax......so they're going to get nothing from this scheme compared to what they're used to living off.

Karma works in mysterious ways.

I am not sure that can be done , but if it can and they do I would expect the Inland Revenue will be round to audit there previous 6 years books once this is all over.

afcb_acklam you are quite correct I am incredibly relieved by this scheme , this money will get me through so once this is all over and we get back to some normality I will be able to continue to trade, without it that was looking pretty dodgy.
 
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