Covid 19 Grant - It's too much...
Discussion
Hi all.
Much as I'd be happy to take the amount of money the government are offering because of my self-employment, it's too much.
I know how much money I've lost, but there doesn't seem to be a way of specifying an amount.
I don't even mind putting the figures here really. My grant would be £3,800 but I've only missed out on work valued at around £1,500.00. It would be the same amount for the next three months as well. Basically I still do a lot of work for one major client, which will continue, but my photography work (events and conferences) has stopped.
Easy to just take the money but it wouldn't be right.
Thoughts welcome
Much as I'd be happy to take the amount of money the government are offering because of my self-employment, it's too much.
I know how much money I've lost, but there doesn't seem to be a way of specifying an amount.
I don't even mind putting the figures here really. My grant would be £3,800 but I've only missed out on work valued at around £1,500.00. It would be the same amount for the next three months as well. Basically I still do a lot of work for one major client, which will continue, but my photography work (events and conferences) has stopped.
Easy to just take the money but it wouldn't be right.
Thoughts welcome
SCEtoAUX said:
Just to conclude this I had an online chat with HMRC and the choice is all or nothing.
However they will then look at my tax return for 2020/21 and claim back anything they think they have overpaid.
That ought to be in the guidance somewhere but I couldn't find it.
A lot of people who have claimed/are claiming are thinking the grant is free & easy money,some on here have commented they know of people who have claimed the max amount and have not lost any work/income, I think a lot of people will get a nasty shock next year after they have submitted their tax returnHowever they will then look at my tax return for 2020/21 and claim back anything they think they have overpaid.
That ought to be in the guidance somewhere but I couldn't find it.
I was under the impression that it was "free money", and you were able to carry on working if able to while claiming the full 3 months based on the last 3 tax returns.
It doesn't affect me, because I'm not eligible (less than 50% income from self-employment), but is the grant really going to be means tested retrospectively?
If true, it does seem to be a lot fairer.
It doesn't affect me, because I'm not eligible (less than 50% income from self-employment), but is the grant really going to be means tested retrospectively?
If true, it does seem to be a lot fairer.
clockworks said:
I was under the impression that it was "free money", and you were able to carry on working if able to while claiming the full 3 months based on the last 3 tax returns.
It doesn't affect me, because I'm not eligible (less than 50% income from self-employment), but is the grant really going to be means tested retrospectively?
If true, it does seem to be a lot fairer.
It is free to a degree although you need to declare it as income so will be taxed accordingly, you ARE allowed to continue working,however,HMRC stipulate that...It doesn't affect me, because I'm not eligible (less than 50% income from self-employment), but is the grant really going to be means tested retrospectively?
If true, it does seem to be a lot fairer.
You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.
Saleen836 said:
It is free to a degree although you need to declare it as income so will be taxed accordingly, you ARE allowed to continue working,however,HMRC stipulate that...
You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.
You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.
Yes that was the bit that I had to think about, but I have emails from clients cancelling bookings. About £1500, possibly £2k of work March to May inclusive, but it's hard to know exactly.
I have lost income, I can prove it. It surely can't be argued that I haven't been adversely affected.
Saleen836 said:
It is free to a degree although you need to declare it as income so will be taxed accordingly, you ARE allowed to continue working,however,HMRC stipulate that...
You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.
That wording does seem to be open to interpretation.....You’ll have to confirm to HMRC that your business has been adversely affected by coronavirus.
SCEtoAUX said:
Just to conclude this I had an online chat with HMRC and the choice is all or nothing.
However they will then look at my tax return for 2020/21 and claim back anything they think they have overpaid.
That ought to be in the guidance somewhere but I couldn't find it.
Sorry but I’m calling bullsHowever they will then look at my tax return for 2020/21 and claim back anything they think they have overpaid.
That ought to be in the guidance somewhere but I couldn't find it.
t on that one. If that is their intention then they need to make that clear when you apply. They cannot change the goal posts after you’ve scored.Take the money, you have no idea what could happen in the next 6 months.
As others have said, you don’t know what the future will bring. The national bail out is (rightly or wrongly) as much to keep the economy going as it is to protect individual circumstances. If it’s more than you need, spend the excess with local small business in your community.
Alternatively, keep it in the bank, they will be asking for it back as higher taxes for a generation.
Alternatively, keep it in the bank, they will be asking for it back as higher taxes for a generation.
Poseidon said:
Sorry but I’m calling bullst on that one. If that is their intention then they need to make that clear when you apply. They cannot change the goal posts after you’ve scored.
Take the money, you have no idea what could happen in the next 6 months.
It's not moving the goal posts - take the money, if you lose business then use it to subsidise your earnings, if you don't lose business you still have the money and can give it back.t on that one. If that is their intention then they need to make that clear when you apply. They cannot change the goal posts after you’ve scored.Take the money, you have no idea what could happen in the next 6 months.
My wife was uncomfortable taking the £10k Grant. We are lucky we don’t actually need it and we both acknowledge that there are many less fortunate out there who may deserve more help. However as I explained to her when the government increase taxation to pay for all of this they won’t look at individual circumstances of who had help and who did not. Corporation tax and income tax will be put up and everyone will be expected to pay. For that reason alone our business has taken the money. We are just going to give it back in future taxation is how I see it.
NickCQ said:
It's not moving the goal posts - take the money, if you lose business then use it to subsidise your earnings, if you don't lose business you still have the money and can give it back.
When you apply it says ‘this money is a grant and does not need to be repaid’. If they ask you a year later for the money back, how is that not changing the goal posts?The recovery for this is not going to be binary. To quantify the actual loss you have incurred from this crisis would be nigh on impossible. It’s going to go on for many months yet.
As other posters have said too this is not only to replace lost income but to stimulate the economy the same way the rates grant and bounce back loans are, they want people and businesses out there spending money to generate profits and pay taxes - that is how they’ll recoup these grants.
Poseidon said:
When you apply it says ‘this money is a grant and does not need to be repaid’. If they ask you a year later for the money back, how is that not changing the goal posts?
It's a flexible scheme put in place at short notice that's designed to be quick to administer and not to require months of arguing with HMRC about how much is needed.The quid pro quo is that it requires those claiming to act in good faith and to use the money prudently. I have relatively little sympathy for those that treat it as a little bit of bonus income on top of unaffected earnings.
Eric Mc said:
Don't forget it is taxable income - so before you give it away or hand it back, you will be liable eventually for the tax arising on it.
Eric, what is your opinion on this? I am in a bit of a dilemma about whether or not to claim a self employment grant for Mrs H.
Her income comes solely from our partnership pet food business that has been trading relatively normally.
I am concerned that this may not be the case going forward so it would be helpful to have this money should things start to take a nose dive.
Thanks for any thoughts you may have, either way. H67.
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