Can you shed a light on government help available?

Updated on April 2, 2020 in Freelancers
6 on March 25, 2020

I wonder how many of you are in the same position as I am:

  • You set up a Ltd company on your accountant’s advice.
  • Most of your work is done by you, basically on a self-employed basis for a number of clients (who are currently disappearing one by one, understandably).
  • You occasionally sub-contract parts of or whole projects out to other freelancers.
  • Your office is home-based, ie you do not pay business rates.

What are we? What government support applies to us? I am rather confused by it all (not blaming the government, who seem to be doing the best they can right now)…. the only thing I have been able to do is apply for a mortgage holiday from next month onwards (hoping it won’t affect my credit score as need to remortgage in the summer).

Any intel you can share would be much appreciated.

Thank you MashMedia for this forum, and stay well and kind, all!

Kirsten

Green Tiger Events Ltd (!) 😉

 
  • Liked by
Reply
1 on March 25, 2020

Hi Kirsten

That is a very good – albeit stressful – question. As I understand, Chancellor Rishi Sunak is expected to announce a further package of support for freelancers and the self-employed. I would assume that your circumstances would be covered, but we will have to wait and see I’m afraid.

However, there is certainly a question mark over whether or not someone is self-employed or is a sole director of a limited company. This is a potential grey area.

In this case, may I point you in the direction of the Association of Independent Professionals and the Self Employed (IPSE) https://www.ipse.co.uk/

This association will be able to tell you which category you fall into.

Good luck!

 

on March 25, 2020

Thanks Martin that’s really helpful. I will see what I can find out, keep an eye on government advice and feedback anything useful I find here. 

 

Thank you

Show more replies
  • Liked by
Reply
Cancel
0 on March 31, 2020

If you are paid mainly by profit as on a self employed basis see:

https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

If on the payroll see the Coronavirus Job retention Scheme.

https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

If you run a company with profits over £50K and you pay yourself in dividends I believe you will get nothing.

  • Liked by
Reply
Cancel
2 on April 2, 2020

Sole directors of limited companies can furlough themselves to avail 80% wages, but as people in these position pay themselves a humble salary through PAYE (and top up through a dividend) it may not be enough to live on still.

Furloughing also means you cannot work, even as a company owner, beyond statutory obligations. 

Not a great scenario, and sadly I can’t see any further developments at the moment.

on April 2, 2020

Accountants are quick to propose ways of saving company national insurance and/or national insurance by living on dividends, but in the end they are the very things that are supposed to protect you in circumstances like this.

on April 2, 2020

A mortgage holiday in these circumstances will not affect your credit rating BTW,

Show more replies
  • Liked by
Reply
Cancel