Newly self employed

andrewsj07

Have paid tax for the last 15 years in employed roles. Decided to go self employed in June 2019 so don't have previous tax returns. Why are newly self employed being discriminated against? 

Grumpy_chap

They are not being discriminated against as such, even though you may see it that way.  Somehow, there had to be something to prevent against fraud, otherwise everyone would just come out and claim to have started self-employment on 28th February with projected profits of £37.5k and can I have the pay-out of £7.5k please?

andrewsj07

I completely understand that some people would try and cheat the system but surely that could be managed one way or another. But my biggest gripe is why not give some support to the newly self employed, £250 a week or something rather than nothing. Surely the employed furlough scheme of 85% of peoples wages doesn't need to be so high, these guys are not using cars as much for work, they are not participating in leisure or entertainment, they are not going on holiday?  If money is an issue for not helping the newly self employed why not drop the furlough scheme down to 75% then they would be able to give newly self employed something even if it is considerably less.

Grumpy_chap

I get why this seems unfair.
I agree the furlough is too generous, but it won't be stopped or reduced until end June.
I think, in your position, the bounce-back loan is now available to you - not ideal, but it will aid cash-flow.
Other than that, unfortunately, it is UC only.

andrewsj07

Well isn't this country fair!!!!!! Everyone free money for 3 months, newly self employed nothing. So we scrape by and then hold on........ Another 3 months free money for everyone except that is the newly self employed. So now we are up to 6 months of nothing. Why are we so different??? What did we do wrong? Bounce back loan will put me in further debt down the line, universal credit not available....... Whats next??

sharpe106

why is UC not available? 

poppy12345

andrewsj07 said:

universal credit not available....... Whats next??

New style JSA if you were PAYE before becoming self employed. You need to have paid the correct NI contributions in tax years April 2017 to March 2019. It pays £74.35 per week for 26 weeks (over 25's)

andrewsj07

Due to wife's income but that does not help our situation in the slightest.

poppy12345

Unfortunately, there will always be people that fall through the cracks.

sharpe106

what do you do self employed? 

Rosskie

I'm with you AndrewJ, similar boat, newly self employed + works dried up, partners income and savings (not much but too much) so no UC, not enough NI paid previously as chose to stay home and look after the kids.  Registered with HMRC as self employed in Aug 2019 but that doesn't count either...

The most unfair bit is that others whom (as advised, fair enough) claimed UC / continued to work at vastly reduced incomes, combined with the grant now have higher incomes for the quarter than they would be before this happened.  And as far as I understand it, will continue to get UC and another grant!  70%/80% of their wage?  Try 100%+