Self employed but only work for one company

Lyngibbon

My son is self employed but only works for one company who pays his wages, they deduct his tax and NI from his wage and they pay him monthly. He doesn’t get sick pay or holiday pay.  He is classed as self employed and does his own tax returns but hasn’t filed his 2018/2019 tax return yet. How should he go about getting a furlough payment, 

[Deleted User]

Doubt very much he is genuinely self employed 

Jeremy535897

How does your son declare the taxed income on his tax return? If he is self employed, which I doubt based on what you have said, he might qualify for the self employed grant, but he has to file his tax return for 2018/19 by 23 April 2020 to have a chance of qualifying. There will already be interest and/or penalties accruing for the late filing, if he is actually required to file a return.
He could only be furloughed if he is an employee, and if he is, he should ask his employer about it. I wonder whether he is a limb (b) worker. Guidance to employers here if he is:

"Limb (b) Workers

Where Limb (b) Workers are paid through PAYE, they can be furloughed and receive support through this scheme.

Those who pay tax on their trading profits through Income Tax Self-Assessment, may instead be eligible for the Self-Employed Income Support Scheme (SEISS), announced by the Chancellor on 26 March 2020.

Read more information on the Self-Employed Income Support Scheme, including eligibility criteria and how to claim."

BrassicWoman

Ask what kind of payroll he is on; is it RTI? That's the key criteria. We run a payroll for self employed but it's not RTI so we cannot furlough them.

prowla

"they deduct his tax and NI" seems a strange kind of self-employed to me...

stulaunch

I wonder if you mean they are deducting CIS payments from his monthly invoices. Which in construction is normal. If so, that's OK. Has he completed his tax return for 17/18, if not he has till the end of April to do so, or he will get nothing. 

Jeremy535897

stulaunch said:

I wonder if you mean they are deducting CIS payments from his monthly invoices. Which in construction is normal. If so, that's OK. Has he completed his tax return for 17/18, if not he has till the end of April to do so, or he will get nothing. 

You mean 2018/19 I think, although obviously 2017/18 should have been filed long ago. I wondered whether this was the answer, but the reference to NI deductions is nothing to do with CIS.

sliphi

Lyngibbon said:

My son is self employed but only works for one company who pays his wages, they deduct his tax and NI from his wage and they pay him monthly. He doesn’t get sick pay or holiday pay.  He is classed as self employed and does his own tax returns but hasn’t filed his 2018/2019 tax return yet. How should he go about getting a furlough payment, 

Lyngibbon said:

I’ve updated the information to this email:

My son is self employed & only works for 1 company who pays his wages monthly after deducting 20% tax He doesn’t get sick or holiday pay. He does his own tax returns & has filed 2018/19 tax return.  Should the umbrella Company claim his furlough payment for him or does he have to wait for HMRC to contact him in June? He has no other income or benefits

He is not eligible for CJRS. That's a scheme that benefits employers, not employees.
If he's an employee, then his employer should be paying him.

If your son is genuinely self employed (which I doubt) then he may be eligible for the SEISS.

As there is now mention of an umbrella company, this seems even more like an employee who has an obsolete type of contract where his holiday pay "rolled up".
Employers should no longer be paying holiday pay in this manner; it became an obsolete method of payment many moons ago. Holiday pay must now be paid when the employee takes their holiday.

If a current contract still includes rolled-up pay, it needs to be re-negotiated.
Source: https://www.gov.uk/holiday-entitlement-rights/holiday-pay-the-basics