Please help me! Self employed sole trader

tonyb6

I need some help and advice. As a sole trader I teach self defence. I run around 6 x 5 day courses each year as well as weekly classes. On the 23rd March I went into lockdown and havent been able to teach since then. I have had to cancel two courses and refund payments. The courses represent the major part of my income wheres as the weekly classes pay my expenses. I was initialy lead to beleive that as a self employed person I had to wait for the Self-employed Income Support Scheme to claim anything and that I would have to wait untill May before I could claim. Around the 27th April I watched Martin Lewis on ITVs Good Morning say as a self employed person I should be claiming UC. Hearing this I applied on the 27th April. I have just received my first payment for the period 27th April to 26th May of £86.

I've been in lockdown for 11 weeks with no income and have no sign when I am likely to be able to teach again. Because I dont have a return date I cant shedule or promote any courses. It normally takes around 3 months promotion to fill a course with 6 to 8 people. UC have paid me so far £86. They have deducted the £514 I receieved from the Self employed Income support scheme which I was lead to beleive was a grant to cover profits lost during lockdown. How can they give it with one hand as a grant and then take it way with the other as a deductible income. Is this right? I don't know where to turn or where to go, £86 for 11 weeks lockdown

poppy12345

The SEISS grant you received is classed as income for UC in the month it's received. If you receive no earned income in the following month then you'll receive the maximum amount of UC for your circumstances. There's also another SEISS grant which you can claim but be aware that will also reduce your UC in the month it's received.

Grumpy_chap

You may also be able to defer any tax payments.
I assume you do not have your own premises but use a church hall or similar for the classes.
Mortgage / loan payment holidays are possible - but these are not free in the long term.
You may be eligible for bounce back loan.

Something seems wrong in your numbers.  You say the self defence self-employed income is greater than 50% of total income and the SEISS grant was £514.  SEISS represents 80% of 3 months' profit.  So that makes 3 months' profit normally £642.50 so annual profit / income £2,570.  If we took that as only £1 above your non-self-employed income to satisfy the 50% test, your annual income comes to £5,139.  That is a very prudent life-style.