Reply to: Umbrella companies, IR35 and the Job Retention Scheme

[JohnyCastro]

Reply from my MP

Sorry can’t help at the moment as I’m in the same boat except I’m a uk resident. So I guess we’ll have to wait and see how this unfolds. My umbrella told me on Monday to look at the gov.uk website (helpful not!) but today I gave them another call and they were a bit more understanding. They told me that the rules of the job retention will be released soon and then they’d have a better idea of how it affects umbrellas and will let us know. Fingers crossed!


Sent from my iPhone using Contractor UK Forum

Hi folks,

Below is the response from my MP. I am working through and umbrella company. Is it up to them to get my monies sorted out? PAYE I have no idea if I am. I have contated them but they have no answer for me as yet.
Any advice would be most appreciated!

================================================== ===========

If you are paid by PAYE you are able to get the umbrella company or employer to claim for you under the Job Retention Scheme.

If you are self employed there is the self employed reimbursement scheme.

You can find the info here: Claim for your employee’s wages through the Coronavirus Job Retention Scheme - GOV.UK and COVID-19: support for businesses - GOV.UK

The FSB is also very good Coronavirus (COVID-19): Advice and guidance for small businesses and the self-employed | FSB, The Federation of Small Businesses

If you don’t fall into any of these categories than you can claim for Universal Credit.

That’s the schemes at the moment.

Good luck,

Ian Murray MP
Labour Member of Parliament for Edinburgh South
Constituency Office: 0131 662 4520
House of Commons: 0207 219 7064
Write: 31 Minto Street, Edinburgh, EH9 2BT

[Paralytic]

What's Lexology - is it a Government website - and what bit of an umbrella pay is covered - I suspect it's 80% of the none-profit share part so 80% of minimum wage,

This will be the crux of matter for Umbrella employees impacted by Covid.

A few Umbrella illustrative payslips I saw did not call any salary payment above the NMW as a "bonus", but rather things such as "Additional Taxable Salary". I think it would be unfair to say that should not be included, but we won't know for sure until someone goes through the process.

Otherwise, its 80% of 37.5 x £8.21

[eek]

clearest info yet that brollys will be covered

Job Retention Scheme and Statutory Self-Employed Pay: COVID-19 emergency measures and what they mean for users and suppliers of contractors, umbrella workers and other agency workers - Lexology

What's Lexology - is it a Government website - and what bit of an umbrella pay is covered - I suspect it's 80% of the none-profit share part so 80% of minimum wage,

[mrdonuts]

clearest info yet that brollys will be covered

Job Retention Scheme and Statutory Self-Employed Pay: COVID-19 emergency measures and what they mean for users and suppliers of contractors, umbrella workers and other agency workers - Lexology

[Paralytic]

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.

From my reading, you will be eligible for 80% of your average salary for last year (or the equivalent month). What I've not seen stated explicitly yet is whether someone has to prove/show that their lack of income now is directly due to the Covid-19 or whether they can just furlough yourself (assuming you have an employment contract with your PSC), pay yourself 80% of your average and then claim that back.

As the employer, you should probably phone HMRC and ask.

[mrdonuts]

looking better for umbrellas

Will the coronavirus job retention scheme apply to umbrellas? • FCSA FCSA

[northernladuk]

That's the SEISS; I'm talking about the Coronavirus Job Retention Scheme.

3rd bold heading or so down covers CJRS

[Wombat14]

That's the SEISS; I'm talking about the Coronavirus Job Retention Scheme.

[northernladuk]

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.

[Wombat14]

When we're you benched?

September 2019.

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.

[Lance]

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.

[eek]

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.

[DaveB]

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

https://twitter.com/AndyIPSE/status/1243460870858047489

[cojak]

This is why we tell all new contractors to save for the hard times (aka warchests).

[Lost It]

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.