Help for newly self employed?

millie84

My partner set up his own business back in November 2019, with an aim to work for himself alongside his full time job. As he got made redundant in June, this business has become his sole income.
Is there any financial help available for him, does anyone know?
He is currently a sole trader, and has recently "employed" himself so he can pay himself a wage.
We are hoping his workload will continue, but in case it does not. 
From what I've seen, he's not eligible for the Income Support as his company wasn't trading in 2019/20, but he could furlough himself if work dries up. 

68ComebackSpecial

millie84 said:

My partner set up his own business back in November 2019, with an aim to work for himself alongside his full time job. As he got made redundant in June, this business has become his sole income.
Is there any financial help available for him, does anyone know?
He is currently a sole trader, and has recently "employed" himself so he can pay himself a wage.
We are hoping his workload will continue, but in case it does not. 
From what I've seen, he's not eligible for the Income Support as his company wasn't trading in 2019/20, but he could furlough himself if work dries up. 

If he's a sole trader then he can't employ himself - i.e. pay himself via PAYE. He can only do so if his business is a limited company. Which is it - sole trader or limited company?

millie84

68ComebackSpecial said:

millie84 said:

My partner set up his own business back in November 2019, with an aim to work for himself alongside his full time job. As he got made redundant in June, this business has become his sole income.
Is there any financial help available for him, does anyone know?
He is currently a sole trader, and has recently "employed" himself so he can pay himself a wage.
We are hoping his workload will continue, but in case it does not. 
From what I've seen, he's not eligible for the Income Support as his company wasn't trading in 2019/20, but he could furlough himself if work dries up. 

If he's a sole trader then he can't employ himself - i.e. pay himself via PAYE. He can only do so if his business is a limited company. Which is it - sole trader or limited company?

Sorry, wrong wording, it is a definitely a limited company. He's the only person in it though. 

MattMattMattUK

Has he submitted a RTI payroll including himself yet?

Grumpy_chap

If he has processed pay role and submitted to RTI before the end of October, it seems as though he can take advantage of the new furlough rules for November.
What type of work / industry and why is there no work? 
Is the business instructed to close? 
 When did work dry up?

Best to take advice from the Accountant for specific steps.

millie84

Grumpy_chap said:

If he has processed pay role and submitted to RTI before the end of October, it seems as though he can take advantage of the new furlough rules for November.
What type of work / industry and why is there no work? 
Is the business instructed to close? 
 When did work dry up?

Best to take advice from the Accountant for specific steps.

He did pay himself through Sage on October 28th.
He's a heating engineer. Before this lockdown was announced he had work until February through a company he is sub-contracting to. Hopefully it'll still be there, but we're just trying to anticipate the worst case scenario.
If businesses close down the work might not be needed. 

Grumpy_chap

Does sage process the RTI submission to HMRC?  Or, is it simply a local application?

I imagine demand for heating engineers will remain high.  Construction work can continue, plus work in house needs to be done irrespective of lockdown.  Going into winter must be the busiest time for heating work.

Dazed_and_C0nfused

millie84 said:

Grumpy_chap said:

If he has processed pay role and submitted to RTI before the end of October, it seems as though he can take advantage of the new furlough rules for November.
What type of work / industry and why is there no work? 
Is the business instructed to close? 
 When did work dry up?

Best to take advice from the Accountant for specific steps.

He did pay himself through Sage on October 28th.
He's a heating engineer. Before this lockdown was announced he had work until February through a company he is sub-contracting to. Hopefully it'll still be there, but we're just trying to anticipate the worst case scenario.
If businesses close down the work might not be needed. 

Paying himself doesn't seem to count for much as far as COVID-19 support goes.

It is reporting of the wages payment to HMRC (via the Real Time Information system) which matters.

strawb_shortcake

My friend has a heating engineering business, he kept going all throughout the 1st lockdown, he rotated his staff through Furlough. 
They did stick to emergency work and although he wasn't making normal profits it was enough to support the business.
We are having a radiator installed Thursday so I hope that still goes ahead.
Hopefully your OH can keep going and not have to rely on Furlough 

macman

Probably even greater demand from the domestic sector can be expected, with people WFH through winter and needing to heat their homes during the day.