Newly self-employed - and CONFUSED !

TYPHOON38

Hello. I am in an awkward and worrying position and need some advice please. Until now, for the last 40 years or so, I have always been employed. However, I recently took the plunge, left my final 'paid' job and became self employed literally a few weeks ago. I set up my own limited company (great timing I hear you say) to work as an associate for another firm who would be 'feeding' me work amounting to around £36k p.a.  They are established, with a wide client base and have been trading for over 20 years. There are other plans in the pipeline to generate income for my limited company but they won't be implemented until year 2 at the earliest, so as it stands, that firm were going to be my only 'client' and therefore my sole source of income. Inevitably, due to the nature of the work that firm specialises in ( training delivery), all of the courses they had booked have now been cancelled. So I am now 'jobless' but with my own limited company ! I have tried to navigate the latest trails of advice as to what, if any, financial assistance I can obtain but am hitting brick walls left right and centre as nothing seems to fit my circumstances :'( . My Wife works full time, but how can I be compensated for the earnings I WON'T be pulling in for (hopefully) the next few months ?
Any assistance / advice would be gratefully received !
Stay safe
Dave 

Jeremy535897

Dave, I am afraid that you are very unlucky on your timing. Realistically your only option is to check eligibility for universal credit using the internet eligibility Government website, or, better, look for a job. The supermarkets are hiring at the moment, for example.

calcotti

This isn’t what you want to hear but I suspect there is little help available to you.

You can apply for new style JSA as a jobseeker (you will have to say you have suspended SE). If accepted this would pay £73.10/week for 26 weeks. JSA is not means tested. Because of your wife’s income you are unlikely to qualify for UniversalCredit but you can use a benefits calculator to check https://www.gov.uk/benefits-calculators.

Paul_01

You are an employee (and Director) of the Ltd company. As such you should be in a position to claim the employee support as already announced.

calcotti

Paul_01 said:

You are an employee (and Director) of the Ltd company. As such you should be in a position to claim the employee support as already announced.

I have my doubts about that for one person companies but until we see the details behind the headline announcements we can’t be sure. To be eligible for support the employee has to be furloughed which means they do no work for the company. The scheme is intended to keep workers on the payroll instead of being dismissed. The owner of a company is not at risk of dismissing themselves, they will still be a director. 

Paul_01

calcotti said:

Paul_01 said:

You are an employee (and Director) of the Ltd company. As such you should be in a position to claim the employee support as already announced.

I have my doubts about that for one person companies but until we see the details behind the headline announcements we can’t be sure. To be eligible for support the employee has to be furloughed which means they do no work for the company. The scheme is intended to keep workers on the payroll instead of being dismissed. The owner of a company is not at risk of dismissing themselves, they will still be a director. 

I think it's worth applying for and seeing what HMRC say.

calcotti

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses#support-for-businesses-through-the-coronavirus-job-retention-scheme
Things will only be clearer when more information becomes available.

p00hsticks

Paul_01 said:

You are an employee (and Director) of the Ltd company. As such you should be in a position to claim the employee support as already announced.

Regardless of the clarity needed around one-person limited companies, there is also the fact that this is going to be based on PAYE earnings for February. So unless the OP had money in the company and had started to pay themselves a salary it isn't going to be of help.