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geogphotos

Govt statement - where does it leave self-employed

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Posted (edited)

I did listen but did not really understand the measures designed to help self-employed.

 

Something about Universal Credit being at level of Statutory Sick pay?

 

No VAT payments to make.

 

Working tax credits increase to basic level?

 

Where does it leave us because all I see so far is a dip in sales, presumably more of a trough to come.

 

 

Edited by geogphotos

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Posted (edited)

I cannot see much there for the self employed Ian unless you have no income or your income falls so low you will be entitled to income support or tax credit. You will be able to defer your July income tax payment until January.

I believe statutory sick pay is around £95 pew week. 

Edited by BobD
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I am already VAT registered but it might be worth others looking into registering.

 

Then you can inform Alamy and get you sales with 20% VAT on top. 

 

Until a few years ago that definitely was worthwhile because you only had to pay 11/20 ths to HMRC, then they changed it to 16.5/20ths.

 

But if that is now going to be 0/20ths it is worth looking into. 

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1 hour ago, geogphotos said:

Then you can inform Alamy and get you sales with 20% VAT on top. 

I'm pretty sure that's not what was announced. From the BBC website: "VAT for all businesses is being deferred until the end of June " and I take that to mean you still account for vat in the usual way but don't need to send the payment until June. There's not much detail around at the moment about how any of this is going to be implemented and my accountant usually sends out a detailed explanation a few days after any major announcement.

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Posted (edited)
13 minutes ago, AndrewP said:

I'm pretty sure that's not what was announced. From the BBC website: "VAT for all businesses is being deferred until the end of June " and I take that to mean you still account for vat in the usual way but don't need to send the payment until June. There's not much detail around at the moment about how any of this is going to be implemented and my accountant usually sends out a detailed explanation a few days after any major announcement.

 

 

VAT for q1 2020 will only get paid in May 2020 anyway so not much of a concession. 

 

Jan-March, submit by end of April, gets taken by HMRC in May. Or have I got muddled.

Edited by geogphotos

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I've read it a just deferring the payment that you'd have made anyway and for a lot of businesses that will be a big help with cashflow. I can't see how they'd just let you keep the vat due because that would be a paperwork nightmare. I don't know what happens if you've just bought a camera/lens and the vat you're reclaiming is greater that the vat you owe on invoices, would they also defer the vat refund to you?

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