Government unveils help for self-employed - MSE News

Jeremy535897

Bradford1956 said:

To Jeremy535897 Thanks, yes I included the rental income on my self assessment return but where it asked if you have any other income eg from property that would be where I would have put my rental income

As would everyone else. It is other income for the purposes of calculating the 50% test.

nigandjules

 Could you please tell me is tax credit and child benefit count as ' other income'? 
All my work is self employed but not many hours, but it's my only other income.
I wouldn't expect to receive much if i do qualify, but just wondered if these benefits would make me ineligible. 

Many thanks. 

SMC_2

Am I right that this self employed scheme is taxable and therefore when it comes to doing next tax return, the 2020/21 return you would include this money in it?

justwhat

Jeremy535897 said:

Rental income is most unlikely to qualify as self employment income, even if it has something to do with the business. To establish otherwise is a technical tax question that needs an expert to answer. I suspect you did not include the rent in your self employment figures on your tax return? You will have to establish whether you meet either of these tests:

Was just debating this. If the directors manage to blag the dividends as income for grant purposes.then surely rental income would follow  

calcotti

SMC_2 said:

Am I right that this self employed scheme is taxable and therefore when it comes to doing next tax return, the 2020/21 return you would include this money in it?

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme#after-youve-applied

This scheme will allow you to claim a taxable grant worth 80% of your trading profits up to a maximum of £2,500 per month for the next 3 months. This may be extended if needed.

Vitesse117

My 18/19, 17/18 and 16/17 tax returns were all
as self employed sole trader. My 19/20 would be my first as a limited company director. Will I still under the self employment scheme or PAYE scheme ? I haven’t taken any dividends just a small salary. 

Jeremy535897

nigandjules said:

 Could you please tell me is tax credit and child benefit count as ' other income'? 
All my work is self employed but not many hours, but it's my only other income.
I wouldn't expect to receive much if i do qualify, but just wondered if these benefits would make me ineligible. 

Many thanks. 

They aren't income for tax purposes so no.

Jeremy535897

Vitesse117 said:

My 18/19, 17/18 and 16/17 tax returns were all
as self employed sole trader. My 19/20 would be my first as a limited company director. Will I still under the self employment scheme or PAYE scheme ? I haven’t taken any dividends just a small salary. 

Who can apply

You can apply if you’re a self-employed individual or a member of a partnership and you:

• have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
• traded in the tax year 2019-20
• are trading when you apply, or would be except for COVID-19
• intend to continue to trade in the tax year 2020-21
• have lost trading/partnership trading profits due to COVID-19

 I don't think you qualify for the self employment grant. You won't meet bullet points 2-5. So far as the job retention scheme goes, sole director companies may be able to claim it, but you could do no work for the company. More importantly, if you haven't taken much in the way of salary, or the company doesn't have a PAYE scheme, or you weren't on its payroll at 28 February 2020, you won't qualify.

Vitesse117

Jeremy535897 said:

Vitesse117 said:

My 18/19, 17/18 and 16/17 tax returns were all
as self employed sole trader. My 19/20 would be my first as a limited company director. Will I still under the self employment scheme or PAYE scheme ? I haven’t taken any dividends just a small salary. 

Who can apply

You can apply if you’re a self-employed individual or a member of a partnership and you:

• have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
• traded in the tax year 2019-20
• are trading when you apply, or would be except for COVID-19
• intend to continue to trade in the tax year 2020-21
• have lost trading/partnership trading profits due to COVID-19

 I don't think you qualify for the self employment grant. You won't meet bullet points 2-5. So far as the job retention scheme goes, sole director companies may be able to claim it, but you could do no work for the company. More importantly, if you haven't taken much in the way of salary, or the company doesn't have a PAYE scheme, or you weren't on its payroll at 28 February 2020, you won't qualify.

Thank you. I am a director of one company and sole trader with another so I’m still really unclear if I should apply for PAYE scheme or wait and see if I’m contacted by HRMC for Self Employment fund. Can you do both ? 

Jeremy535897

I am not sure what you mean by "sole trader with another (company)"? If you have self employment income as a sole trader (nothing to do with a company) you may qualify. See details at:
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
One of the conditions is that your self employment income must exceed all other income for the relevant period, as you will see, but that may not be an issue.
If you are lucky enough to qualify for both, presumably you can claim both. Most people who switched from self employment to limited company did so without continuing any self employment, and can find themselves qualifying for neither.