Being Self employed

[Bodd]

My net income for the year ending 2019 was £50,374

My previous 2 years were less. Do I qualify for the help from the government.

 

[jj4091]

It seems to me it was an average of your last 3 years earnings, so if that averages out at less than 50k then yes you qualify.

 

[Bodd]

That's the way I see it. Does it include this current working year

 

[Mottie]

Yes, it should be until end of March this year.

 

[crystal ball]

Does that mean you have to have your tax return in, my year end is same as the tax year

 

[motorbiking]

Its also capped.

 

[Mottie]

Don’t think I can claim anything. Minimum salary and paid mainly in dividends. Luckily I have very little overheads and a bit of a war chest in the company account. Might be eligible for that £10k grant though as a business that works from commercial premises and gets small business rates relief. Just have to wait and see.

 

[Munroast]

I used to be on that Ltd co paid by dividend thing. Do people still do that? and if so would they only be able to claim 80% of the NIC threshold a week they paid themsselves ? that would be a bummer.

 

[EddieM]

I used to be on that Ltd co paid by dividend thing. Do people still do that? and if so would they only be able to claim 80% of the NIC threshold a week they paid themsselves ? that would be a bummer.

Specifically excluded I think.

 

[Mottie]

Specifically excluded I think.

Yep. Specifically excluded. We elect to get paid mainly in dividends as it is more tax efficient (7.5% tax on dividends after the first £2k up to a certain amount) as it saves the individual director and the company on NI payments. Not as good as it used to be but as my wife pointed out, you can’t have it both ways! That’s only fair I suppose.

 

[EddieM]

Yep. Specifically excluded. We elect to get paid mainly in dividends as it is more tax efficient (7.5% tax on dividends after the first £2k up to a certain amount) as it saves the individual director and the company on NI payments. Not as good as it used to be but as my wife pointed out, you can’t have it both ways! That’s only fair I suppose.

Yep, gotta take the rough with the smooth. Only right n proper.

 

[^woody^]

Yes what annoys me about all these self- employed/freelancer whingers, is that when times are good they are there making good money, better than any PAYE worker, and they should be making allowance for the bad times and not squandering the profits on holidays, latest cars, biggest TVs etc.

That's what being self employed is about. If you don't like it, get a normal job. FFS

 

[EddieM]

Yes what annoys me about all these self- employed/freelancer whingers, is that when times are good they are there making good money, better than any PAYE worker, and they should be making allowance for the bad times and not squandering the profits on holidays, latest cars, biggest TVs etc.

That's what being self employed is about. If you don't like it, get a normal job. FFS

I couldn't agree more, them's the rules, suck it up.

What always surprises me is when folk with the same MO as me, stress and hand wring when their Corp tax is due.. surely they must know approx how much it will be a set aside funds appropriately?

 

[sodthisforfun]

is that when times are good they are there making good money, better than any PAYE worker

Plenty of freelancers who scrape by and don't make good money.

 

[EddieM]

Plenty of freelancers who scrape by and don't make good money.

There are but it that case they really should consider an umbrella company or taking all the money as a wage.