An old colleague of mine has used the Self Employed Income Support scheme eligibility checker and it says they are not eligible for any help but can't find out why. I said i would help to try and find out why as I know there are some in the know people on here and I will let them know what I find out. Until we had to pack it in due to my other half being disabled we were in very similar circumstances to them so this has proper p155ed me off. I've not asked too many questions so will give the information to work off based on what our info would have been. Self employed. Husband and wife partnership. Sub contracting to one company. Works in building industry Income taxed at source (20% flat if I remember correctly). Claim back excess payment at end of year Joint income before expenses £30-£40k. Accounts for at least 15 years. Had no work since the lockdown started. Starting back in a small way as sites reopen but won't get any pay for at least 3 weeks. Can't claim Universal Credit. Any help appreciated as to why they have been told they're not eligible or what to do to show they are. Thanks in advance.
Aren’t the government going to contact all self employed people by June inviting them to apply for a payment, 3 months of average declared profits (3 years of accounts taken into consideration to work out average) I understand UC is there if in hardship now but it’s like getting blood from a stone to qualify?
To answer both replies....there is a site to check for eligibility ...it says they aren't. And yes...they work together (or don't work at the minute)....partnership...income split down the middle.
Thanks, just used that as the mrs is self employed. Says we can apply on 15th May. I’m not sure if the sub contracted bit above confuses the issue above and being taxed at source?, we pay our tax and NI at the end as I assume most self employed people do?
It's a building industry thing to stop cash in hand work/fraud. A company gets the contract for the work. They give the work out on a self employed basis. The company then pays out "wages" but takes a flat rate 20% in tax. At the end of the tax year you put in your accounts that say how much tax and NI you should have paid and you claim back the difference.
I was going to say the same re: being taxed at source. That doesn't usually happen in self employment.
seems a reasonable situation, I’m guessing, and of course it’s just a guess that it’s that what’s stopping the website allowing a claim?
Sounds like an employment relationship if the company paying the wages is withholding tax at source? There are other types of withholding tax but can’t think which others would apply here. I still haven’t got a clear picture of how they’ve set themselves up, however. Is the company you’re referring to here a third party, or a company that they are the directors and shareholders of and they pay themselves a salary? You mention they are a partnership, have they registered with HMRC as a partnership?
The company take the tax and pay it monthly to HMRC....standard building industry thing....simple subcontracting from brickies to cleaners. They are registered as a partnership....plain and simple....no directors or anything....what they earn week to week is what goes into the bank to live on....minimal savings.
It will be a circumstance that the software hasn't been programmed to take account of. There's anomalies like that in benefit calculators such as Entitled To as well.
In which I’m struggling to see why they’re not eligible. If they’re registered as a partnership then each of the partners needs to make a claim separately and eligibility should be worked out based on each partner’s share of the trading profits. They don’t have a separate employed job which is >50% of their earnings?
No other job or income source. I'll be passing all info and possible reasons on the them tonight for them to look into.
I think it's to make sure that the government get tax at source rather than chasing it from lots of tradesmen that won't have put money to one side to pay a tax bill at the end of the year. People used to have to get jobs on the books to pay off there tax bills!!!
We were doing it 25 years and it changed a few times from direct like this, to save up and pay in 2 instalments. Always preferred this way as you knew it was paid and you got a lump sum at the end of the year to treat ourselves (although for many years we used it to reduce our mortgage....bl00dy glad we did as we would still be paying it !)
