JSA, P45 and self employed

aimeelee555

Was hoping someone could help me! 

Been self employed for the past 4 years, now unable to go to work due to coronavirus. 

Applied for JSA on the 24th of March, (as well as universal credit which was successful), heard absolutely nothing back from JSA until today when I received a P45 through the door with no explanation as to what it means. 

No clue if my JSA claim has been successful (although I doubt it) and if I will now have to register as self employed again once this is all over? Would applying for JSA have cancelled my self employment, especially as I received a P45?

im mainly just confused as to what the p45 means. 

Thank you for any help!

poppy12345

Being self employed you will not be able to claim New style JSA. Even if you were entitled there would be no financial gain to claiming this and UC because it would be deducted in full from your UC entitlement.

UC will not affect the grant you receive but it will affect the amount of UC you're entitled to in the month you receive the grant. It may also affect the amount of UC you receive the following month, but it will depend on how much you receive. It could reduce your UC to zero.

calcotti

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

You can make a claim for Universal Credit while you wait for the grant, but any grant received will be treated as part of your self-employment income and may affect the amount of Universal Credit you get. Any Universal Credit claims for earlier periods will not be affected.

https://www.understandinguniversalcredit.gov.uk/new-to-universal-credit/self-employment/

Self-employment Income Support Scheme
The Self-employment Income Support Scheme (SEISS) will support self-employed individuals (including members of partnerships) whose income has been negatively impacted by coronavirus. The scheme will provide a grant to self-employed individuals or partnerships, worth 80% of their profits up to a cap of £2,500 per month. 
You should not contact HMRC about accessing SEISS now. HMRC will use existing information to check potential eligibility and invite applications once the scheme is operational.
The Self-Employment Income Support Scheme will be treated as earnings in Universal Credit. Your Universal Credit payment will adjust in response to changes in your earnings.

aimeelee555

poppy12345 said:

Being self employed you will not be able to claim New style JSA. Even if you were entitled there would be no financial gain to claiming this and UC because it would be deducted in full from your UC entitlement.

UC will not affect the grant you receive but it will affect the amount of UC you're entitled to in the month you receive the grant. It may also affect the amount of UC you receive the following month, but it will depend on how much you receive. It could reduce your UC to zero.

Thank you for replying! I probably worded it badly but I did mean to say will the P45 mean I’m no longer self employed,  and will that now affect my SEISS claim.  

lmc1984

The exact same thing has happened to me. I’ve been self employed hairdresser for 10 years. After applying for JSA and Universal Credit (yet to hear back) due to being unable to work because of Covid-19. I received a letter a couple of days ago saying I was not entitled to JSA. The following day a copy of my P45 has came through. I was only looking for financial help in the interim until we get the 80% of our earnings. I will be going back as soon as the government advise it’s safe to do so. I really hope someone can clarify why they are sending out P45’s I tried calling the number on the letter but you can’t get through to speak to anyone. It tells you all operators are busy and cuts you off. I’m worried this may have a negative impact on my SEISS claim when that eventually comes around. So want to get this rectified on the DWP system ASAP. It is a worrying time as it is already, makes me feel slightly better that I’m not the only person this has happened to. Hopefully it’s something that’s easily sorted 

poppy12345

lmc1984 said:

The exact same thing has happened to me. I’ve been self employed hairdresser for 10 years. After applying for JSA and Universal Credit (yet to hear back) due to being unable to work because of Covid-19. I received a letter a couple of days ago saying I was not entitled to JSA. The following day a copy of my P45 has came through. I was only looking for financial help in the interim until we get the 80% of our earnings. I will be going back as soon as the government advise it’s safe to do so. I really hope someone can clarify why they are sending out P45’s I tried calling the number on the letter but you can’t get through to speak to anyone. It tells you all operators are busy and cuts you off. I’m worried this may have a negative impact on my SEISS claim when that eventually comes around. So want to get this rectified on the DWP system ASAP. It is a worrying time as it is already, makes me feel slightly better that I’m not the only person this has happened to. Hopefully it’s something that’s easily sorted 

Self employed are unable to claim New style JSA. The reason you've been sent your P45 is because your JSA claim has now been closed because you're not entitled to claim it. It will not affect your SEISS at all.

When you do receive the SEISS is will affect your UC in the month it's received and could reduce it to zero so do be aware of that.

lmc1984

poppy12345 said:

Self employed are unable to claim New style JSA. The reason you've been sent your P45 is because your JSA claim has now been closed because you're not entitled to claim it. It will not affect your SEISS at all.

When you do receive the SEISS is will affect your UC in the month it's received and could reduce it to zero so do be aware of that.

Thank you for your reply, I really appreciate it. I am concerned I will be registered as unemployed on the DWP or HMRC system now though because they have given me a P45? Because that isn’t the case, technically I am unemployed but only because I am unable to work due to the Covid-19 situation and government guidance. I am still self employed and will be back at work as soon as the government allow us and it is safe to do so. I just don’t want any confusion with HMRC or DWP

sammyjammy

There will be no confusion and there is no getting around it, you made a claim it was closed, you get a P45, its like working for an employer for a day it doesn't matter how long you were there you get a P45.  Please don't overthink it.  Many people who are self employed have had to make a claim to UC to meet ends meet, when they cease to claim it they too will get a P45, it will make no difference to either employment or self employment.  Even in normal circumstances people claim UC or JSA and work self employed.

calcotti

sammyjammy said: Many people who are self employed have had to make a claim to UC to meet ends meet, when they cease to claim it they too will get a P45, ..

I don't think that is correct. As Universal Credit is non taxable I don't think there is any need for a P45 to be issued.

huckster

calcotti said:

sammyjammy said: Many people who are self employed have had to make a claim to UC to meet ends meet, when they cease to claim it they too will get a P45, ..

I don't think that is correct. As Universal Credit is non taxable I don't think there is any need for a P45 to be issued.

Correct.  Universal Credit do not issue any P45 as a non taxable benefit.
In regard to the JSA P45 this is automatically issued and should not affect any SEISS claim. But it might be worth checking with HMRC for peace of mind, that you are still registered as self-employed and the JSA P45 following claim being closed without payment, does not affect the SEISS claim in any way.  

lmc1984

Thanks guys, I’ll contact HMRC just to clarify my situation, it can’t do any harm. This is all very confusing 🤷🏼‍♀️ What would we do without MSE 🙌🏻