Self Employed Chancellor Announcement - 26th March 2020
This announcement is potentially good news for anyone that works for themselves as a Sole Trader or via a Partnership, but not so good news for people who work for themselves in a Ltd Company structure as they are not included in this support.
This will be a huge disappointment to the thousands of small ltd company owners who pay themselves dividends.
Although their salaries will count towards the Job Retention Scheme: https://www.businesssupport.gov.uk/coronavirus-job-retention-scheme/
the dividends will not despite the fact that their companies have already paid tax at 19/20% before paying the dividends and then paid an additional 7.5% personal tax on top of that.
Clearly an unfair situation that needs addressing.
We would recommend everyone watches Martin Lewis programme on ITV at 8.30 this evening as this issue will be addressed.
The government are clearly of the opinion that the business grants (only open to those businesses that have premises and receive a bill for business rates), Time to pay arrangements and deferral of VAT are going to be sufficient.
We expect pressure to be put on the government to do more for these people, of which there are many within our clients.
In the meantime however, it is clear that some serious planning is required and we will be in touch with everyone to work on the solutions available.
Again, as with previous announcements, we will be waiting for detailed guidance to be released and will be working only with the information announced by the chancellor and on the HMRC/Gov websites so please do bear with us as we work to digest and understand all the implications.
Please do get in touch with your main contact at Azure and arrange a time to have a conversation in the next few days so we can help you plan through this tough tough time.
We will all get through this together and everyone at Azure is committed to giving you the best advice to get through it.