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Umbrella companies, IR35 and the Job Retention Scheme

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    #21
    Originally posted by TazCaz View Post
    Let's not forget that now is the time to be kind, Paralytic. Hope your week gets better
    I'm fine thanks and fortunate that I've not been financially impacted by Covid-19, but am well aware that could happen at any time and am preparing myself appropriately. Part of that preparation is reading what others have found out and not just asking the same questions again.

    I'm not expecting any handouts from the government for Ltd company contractors.
    Last edited by Paralytic; 27 March 2020, 08:27.

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      #22
      Originally posted by northernladuk View Post
      When we're you benched?
      And what is the "base salary" component of what you get paid (what does or would go on your self-assessment). On the face of it, if you can furlough yourself, and not be doing any work because of Covid-19, you can claim 80% of that.

      But, whether directors are eligible for any claim is still to be proven (one way or the other). I suspect this is a case where someone will try it and we'll see what happens.

      Has anyone who has started one of the (many) threads on this subject actually put in a claim as an employer, or asked their Umbrella to do so, as per: Claim for wage costs through the Coronavirus Job Retention Scheme - GOV.UK
      Last edited by Paralytic; 27 March 2020, 08:46.

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        #23
        Originally posted by Paralytic View Post
        And what is the "base salary" component of what you get paid (what does or would go on your self-assessment). On the face of it, if you can furlough yourself, and not be doing any work because of Covid-19, you can claim 80% of that.

        But, whether directors are eligible for any claim is still to be proven (one way or the other). I suspect this is a case where someone will try it and we'll see what happens.
        Base salary would be national minimum / living wage - everything on top of that is called a "bonus". So in theory an umbrella company could claim and pay furloughed workers the minimum wage but they can't as they are only receiving 80% of the figure and aren't in a position to pay the rest.

        And if a contract is terminated they can't as there is a requirement that the person being furloughed has work to return to at the end of it.

        Elsewhere there was a discussion that a lot of firms are adopting a 2 tier approach, making redundant anyone they think they cannot justify keeping and furloughing only a core team ready for when a smaller business reopens later this year.

        As for company directors at the moment they are receiving zip as you cannot furlough a company director (there is always admin that needs to be done).
        merely at clientco for the entertainment

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          #24
          Unless I didn't get the right message HMRC will decide if you will be due any help based on your filings over the last three years. If you earn more than £50k you get nothing. So you won't know until they contact you in June IIRC.

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            #25
            This is why we tell all new contractors to save for the hard times (aka warchests).
            "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
            - Voltaire/Benjamin Franklin/Anne Frank...

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              #26
              Thread from Andy Chamberlin (IPSE) on the help available to freelancers.

              https://twitter.com/AndyIPSE/status/1243460870858047489
              "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

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                #27
                Originally posted by Lost It View Post
                Unless I didn't get the right message HMRC will decide if you will be due any help based on your filings over the last three years. If you earn more than £50k you get nothing. So you won't know until they contact you in June IIRC.
                Only if you are self-employed and fill in the self-employed assessment supplementary forms (SA103S) when doing your self assessment tax return.

                Even
                Claim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme - GOV.UK says that if you use a limited company you need to use the Job retention scheme.
                merely at clientco for the entertainment

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                  #28
                  Originally posted by eek View Post
                  Only if you are self-employed and fill in the self-employed assessment supplementary forms (SA103S) when doing your self assessment tax return.

                  Even
                  Claim a grant through the coronavirus (COVID-19) Self-employment Income Support Scheme - GOV.UK says that if you use a limited company you need to use the Job retention scheme.
                  got this today fropm Gorilla

                  Unlike the Self-Employment Income Support Scheme (SEIS), the Job Retention scheme should be accessible to those working via a limited company, and you will be able to obtain the grant based on salaries payed from the limited company (however any payments made via dividends are excluded).

                  Employers can claim up to 80% of furloughed employees usual monthly salary costs, up to a maximum of £2,500 per month. Employers can choose to top up an employee’s salary but do not have to under the scheme. Claims can be backdated until 1st March 2020 if applicable.

                  The scheme is open to UK employers that have created and started a payroll scheme by 28th February 2020 and have a UK bank account.
                  See You Next Tuesday

                  Comment


                    #29
                    Originally posted by northernladuk View Post
                    When we're you benched?
                    September 2019.

                    Originally posted by Paralytic View Post
                    And what is the "base salary" component of what you get paid (what does or would go on your self-assessment).
                    There isn't a formal "base salary" as such. My regular monthly income was set at a level (£5k, suggested by InTouch) which was likely to, and did, result in a regular surplus. This surplus was periodically added to the salary in whatever month I happened to claim it, with additional PAYE paid in the usual fashion. The SATR just states the total income and tax paid for the year, it doesn't have a concept of a base salary.

                    Additional, InTouch had this to say today:

                    The guidance notes do however confirm that a director of their own company who is paid a directors fee through PAYE does have access to the Job Retention Scheme. Most of our customers pay themselves a directors fee and the value of support available will be with reference to the level of the directors fee, expected to be 80% of the amount. The earnings period will be with reference to the amount you earned in the same month last year or an average of your monthly earnings from last year.

                    If you have any employees in your company who were on your payroll on 28 February 2020 they will also be eligible for this, however, all employees or directors must not be doing any work whatsoever for the company (i.e. you and your employee(s) are “furloughed”) during the period over which the payment is claimed i.e. your company must be out of contract and not in receipt of any payments.
                    My emphasis. The bit in bold is interesting and puzzling. Do we get to choose which it is? Seems unlikely...

                    It also seems odd that I'm notionally eligible for this despite my benching last year obviously having nothing to do with coronavirus. I suppose I could argue that the current circumstances aren't exactly making it easier to get back off the bench, but still.

                    Comment


                      #30
                      Originally posted by Wombat14 View Post
                      September 2019.



                      There isn't a formal "base salary" as such. My regular monthly income was set at a level (£5k, suggested by InTouch) which was likely to, and did, result in a regular surplus. This surplus was periodically added to the salary in whatever month I happened to claim it, with additional PAYE paid in the usual fashion. The SATR just states the total income and tax paid for the year, it doesn't have a concept of a base salary.

                      Additional, InTouch had this to say today:



                      My emphasis. The bit in bold is interesting and puzzling. Do we get to choose which it is? Seems unlikely...

                      It also seems odd that I'm notionally eligible for this despite my benching last year obviously having nothing to do with coronavirus. I suppose I could argue that the current circumstances aren't exactly making it easier to get back off the bench, but still.
                      Then you won't be eligible.
                      Last edited by Contractor UK; 27 June 2020, 11:04.
                      'CUK forum personality of 2011 - Winner - Yes really!!!!

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