Self-employed Farrier - Entitled to grant?

Mark_H_3

Hi,

I am posting on behalf of my daughter and her partner.

He is a Farrier and started his business up last year. 

My understanding is that he would be entitled to a grant from the government if he is not a limited company and earnt less than £50k last year - both of which apply.  However, it states that you have to have last year's accounts, and as he only started the business last year, he doesn't seem to qualify, which is ridiculous!

His business has been severely impacted by the lockdown - all competition horses (racing and eventing) have just been turned away, so no need for a farrier - therefore most of his business disappeared overnight!  He is the sole provider as they have a 1-year-old child that my daughter looks after and they are struggling.

Surely there must some support for them? If so, please can you point me in the right direction?

Many thanks,

Mark

mobilejo

Unfortunately the self employed grant is not available to people who only started self employment in the last tax year (2019/20). He would have to have been self employed in the 2018/19 tax year. 

He could be eligible for a bounce back loan though, which is 25% of annual (or expected, if a new business) turnover. You apply for that directly with the bank.

holly1991

Does he have a business account? Bounce back loan is an option although a loan not a grant, Even without a business account he maybe able to apply for one or a feeder account to see if it’s possible to apply , if their household has less than £16,000 savings certain benefits could be an option , someone else on here would probably be able to give better advice on that than I can. And u never know after so many self employed not being eligible for the first grant it maybe easier to get your hands on the 2nd one 🤷🏼‍♀️ More info on the 2nd grant on the 12th June 

poppy12345

If they don't have savings of £16,000 then they could claim Universal Credit. Tell them to use a benefits calculator to see what the maybe entitled to. Do be aware that a claim for UC will end any tax credits they may already be claiming and they won't be able to go back to tax credits in the future once a claim for UC is made.

Council tax reduction can be claimed from their local council.

Mark_H_3

Thank you for the replies - hopefully, the announcement on the 12th of June will bring some positive news for them.  These new businesses are surely some of the most vulnerable as they have no access to any grants etc.
He won't take a loan - hates the idea of owing money, especially due to a situation that is not his doing!

holly1991

I know how he feels about taking a loan... I’ve managed to build up my business without having to use loans or overdrafts as didn’t want to owe anybody but taking the loan with such low interest means that the business I’ve worked so hard for can survive, for me, was worth the risk/debt 

sharpe106

If he does not take it basically his company folds. Then all the effort he has done is for nothing.

Thrugelmir

Don't despair as many trades return to work there's a huge pent up demand for services. 

Mark_H_3

sharpe106 said:

If he does not take it basically his company folds. Then all the effort he has done is for nothing.

Obviously, if that was the only option then he would take it - but he would rather struggle on than add debt.
Just annoying that the Government overlooks these people/businesses when other businesses are eligible for grants that don't need it.  A local business to me has been busier than ever and providing a great and valuable service through these tough times - they have taken the grant - "why wouldn't we, everyone else does"!

sharpe106

Lots of companies would have taken the grant that did not really need it but that is the rules, the same as some people on the job retention scheme are currently better off. Does not make it right but how the rules currently are.

Mark_H_3

I appreciate they are the rules and most if not all companies will take a grant if it is made available, regardless if they need it.
Hopefully, Grant v2 will bring them some good news!