Self Employed Sellers Information


#1

I just thought I’d provide some clarity on the Chancellor’s announcements regarding self employed people (which many Amazon sellers are). Hopefully, these should allow you to continue to trade, if you can do so safely and will prevent misinformation on the forum. Good luck to all who need help so you can remain an Amazon seller :slightly_smiling_face:

The main points of note are:

Coronavirus Self-employment Income Support Scheme

  1. If you have suffered a loss in income, a taxable grant will be paid to the self-employed or partnerships, worth 80% of their profits up to a cap of £2,500 per month. Initially, this will be available for three months in one lump-sum payment, and will start to be paid from the beginning of June.

  2. It is open to those who were trading in the last financial year, still trading now, and planning to continue doing so this year.

  3. More than half of a claimant’s income needs to come from self-employment.

  4. The scheme will be open to those with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2017-18.

  5. Those who are recently self-employed and do not have a full year of accounts will not receive any help under this scheme.

  6. HM Revenue and Customs (HMRC) will use existing information to identify those eligible and will invite applications. People do not need to contact HMRC now, if they are eligible HMRC will contact them directly


#2

Thanks Ian,
Good to hear,such a shame that there is no safety net for new businesses.
It’s hard enough for them to get started these days, without a Coronavirus pandemic to contend with too.


#3

Yes, this did p*** me off, TBH, Tracey. A business is a business. Some people will have put huge resources into getting off the ground and they’ve effectively been left to the mercy of Universal Credit. And if anybody wants to know what that’s like, I recommend this film:


#4

If in the right area those left out of the loop can always fill in the next six months picking lettuces or other produce, since the usual transient workforce will not be coming this year there are many thousand vacancies which urgently need filling, to save the crops rotting in the fields.


#5

Call me an old cynic but something tells me the lettuces will be rotting in the fields.


#6

It’s not even just new businesses. Those with less than 50% self-employed income over those 3 tax years aren’t eligible. Someone could be employed 2016-17, start self-employment early in 2017, build up the point it’s sustainable to go fully self-employed - and they’d still fall through a gap even though they’ve been self-employed for over 3 years.

I think they should give an option for 2017-18, 2018-19 and 2019-20 tax years to be used if the 19/20 tax return is submitted early (e.g. by the end of May)


#7

All those tax evaders who hid their income will be rueing their decision if it now costs them their chance at Govt help…


#8

That is exactly what I was discussing with my better half whilst we were watching the announcements.


#9

Good news for self employed, wonder what will happen regarding company directors?


#10

I am a company director. I refer you to this thread: :smiley:


#11

Company directors get nothing but their staff get paid…
So our staff will be better of than the owners of the business that put our own money in to keep the business running, never again


#12

Correct me if I’m wrong. A reporter did ask that would it need to be repaid & chancellor said we would looked at a later date.

Also, anyone who has a VAT bill to pay this quarter I would advise on just paying it if you can & not deferring it as you may get into problems in 3 months. This is just to put my 2 penny worth on it.

I believe there has been a lot of sugar coating on the announcements.

Before anyone asks, I am actually a Chartered Accountant & do practice. Completed ACCA in 16/17 season. Not that anyone cares


#13

I am pretty sure that I won’t be eligible either because I also have a part time job.


#14

You know down the line people who meet the criteria will have to pay it back :frowning::disappointed_relieved:

But all good right now :smiley:


#15

Amazing post, to the point and informative, much appreciated in these difficult times x


#16

Yes, but there will be many more who try and scam the system


#17

I agree Ian. I did make a good start until impacted by the virus like everyone !


#18

Nothing!!! I am a company director, work from home, no staff…I qualify for jack s**t according to my accountant!


#19

Yes you did hear that correct. I’ve no doubt the Government will make sure that we all end up paying far more than any immediate benefits we might get now.

He also said that after this is over they would put self employed people on the same footing as those on PAYE. I’m guessing that means a rise in national insurance contributions and who knows what else. This is very worrying.

One thing is certain, you can bet they won’t be putting us on the same footing when it comes to paid holidays and sick pay… it will be entirely a one way street

Yes I think so too.

The other worrying part is they say that although 95% of businesses will qualify, some will not… I’m just waiting for the announcement that says online self-employed businesses won’t be one of them.


#20

I was wondering how it would work if you don’t have your income cut by 100%. What if you are an Amazon seller and you are seeing say a 50% reduction in your usual sales, can you claim for just 50% of the help (or 40%, being half of 80%)?

Can you ONLY claim for the 80%? If my sales go down to 50-60% of normal in the coming weeks/months and I then get an 80% grant on top of that I would be getting more than I would have made.

I don’t want to be taking more money than is due to me. It all comes out of the national pot and there are other more important things that need supporting than me at the moment, not least the NHS.

The devil is in the detail really, hope they get this all worked out before it kicks in.