IR35 Private Sector Deferment
As you may be aware that the government has now postponed the IR35 to the Private sector until next year in response to COVID-19. Close to the time, we would let you know if there are any further changes. For more information, please click the link below:
The Government Support in Response to COVID-19
As we are now receiving question/s from client regarding what they can claim or assistance which may be available based on the Announcement from the government to support UK Businesses and Individual. We would like to point you to the government website with link provided below as the information keep changing whilst government are revising and trying to accommodate and support the needs of individuals and business. All benefits of the grants and applicable grants are provided in the government link below, how to claim, who should claim, and requirements are all included. We would strongly advise to always check the government website for updated information as they are updated regularly.
Summary of the Announcement
Only sole traders and partnership will benefit from the scheme, directors of a limited company earning salary and dividend will not benefit from the scheme. However, directors can claim 80 percent of the usual monthly salary earned as a director (i.e. as an employee of the company) of the limited company for period when they have not worked as a furloughed employee to avoid redundancy . For more information as an employee (director) on how to claim the 80% of your salary. Please visit this link: https://www.gov.uk/guidance/check-if-you-could-be-covered-by-the-coronavirus-job-retention-scheme. As the employer of the limited company, to claim the 80% retention fund to pay yourself as the director/ your employee, please visit this link as it explains how to apply and who can apply: https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme.
How will government calculate the Self-employed scheme?
The sole trader/Partnership will receive 80 percent of the average net profit on their self-assessment income for the last three 3 years up to £2,500 a month. There is a cap of £50,000 net profit per year, if your net profit is more than £50, 000 per year, you will not qualify for the grant.
The scheme will only be covered for 3 months and may be reviewed by the government. HMRC will identify self-employed taxpayers and contact them directly by post on how to apply for the grant.
If you have any concerns, or need help and advice , please contact us today via the contact page.