Last updated: 06 April 2020
00:00 – Hello, and this is my updates, uh, on the evening of 6th of April. And I just want to say hello to you all and hope you all doing well. It is been a couple of weeks since we’ve been in a situation where we’re all at home and working from home or not working from home as the case may be. And I just wanted to just check in on you.
How are you. I hope you’re doing well. Is everyone around you healthy and staying calm and well, maybe you’re home with the kids and in the driving it a little bit crazy stuff. I mean, I can, you can understand that, right? They’ve got loads of energy and uh, they, they probably want to play. So I wonder how you are doing and I wonder how your spirits are and I’m hoping that you are in good spirits and thinking positively.
About what’s coming next. And of course, things will change. Things are not going back to the way they used to be. This has been big.
01:00 – and so we need to be prepared for a new environment. But today I want to just talk initially about a couple of developments that have been in the. News regarding how you might be doing.
The first one is if you are self employed, then the self-employed income support scheme. Has now clarified that if you filed a tax return for 2019 but we’re not self employed for 18 and 17 then you are still in with the chomps as long as your income was below 50,000 but you must also have traded in 2019 20 ending.
Yesterday, and you must intend to continue trading all things being equal, subject to the effect of, uh, the, the problem we have that you intend staying trading as a sole trader for 2020 21.
02:00 – So if those factors are all correct and you are. On the 50,000 then you still qualify, even though you didn’t trade for 17 and 18 which is what they, when they first announced it, they said, you have to be trading for those years and average them out.
Okay. The next thing I want to talk about is furlough. Some of you are furloughed because you can’t work. Remember, the furlough dates are from the 1st of March. If you were furloughed, if you had to shut up shop, if you just couldn’t work, if your business collapsed at that date and you couldn’t work, then you.
Could be followed from the 1st of March and can be dated back to that date, even though you haven’t put a claim in yet. And the reason you haven’t put a claim in there, by the way, is that the Indian rev, you haven’t set up their site for the claims. No big deal. Just record what date you were followed, what dates, all the cancellations of orders and things came in.
03:00 – I’ve got clients whose orders just instantly collapsed as soon as they announced social distancing and stuff. So. It depends. Everyone is different and user circumstances will be different, so you need to be clear on that so that you can justify it. If you are audited by HMRC. The next potential development.
This is like a glimmer of good news for those of you with micro limited companies, with small limited companies where you either employ other people or you don’t. So it could be personal service companies where you offer your own services through your company or. That you have a team of people who help you generate services.
So for example, uh, we would be a micro service company even though, you know, w w of a reasonable size. Uh, we still, we employ some people and, uh, we pay ourselves through salary and dividends most.
04:00 – That’s one of the key things. Now, what they have clarified, as you probably know from my previous briefings is that as a director, you are able to claim the furlough and 80% of your salary, or be it maybe 10 or 12,000 pounds. And of course, uh, you can’t claim anything for your dividends. Now the glimmer of hope when questioned by a think it was Robert Peston a couple of days ago, it was Friday last week when he questioned, uh, the panel, the I, the sense I got was there, was still looking at it.
Given that in a, people like us are reasonably large employers and you know, in the community at large, you know, we employ a few, quite a few people as a group. There must be about between 300 and a half a million businesses like ours. Who have got very little out of this deal.
05:00 – Even though we pay quite a lot in taxes with corporation tax and dividend tax and self-assessment tax and higher rate tax, we’re not getting the same deal as employer, as employees, which is 80% up to two and a half thousand.
We’re not getting the same deal as self-employed, which is 80% of two two and a half thousand. If your income is below 50. Which is again, a bit of a climb down and um, we’re already getting 80% of our salary. And for most people, that’s going to be 80% of either 8,000, which is not very, very good. Whoever planned that was not a good, it wasn’t, did not do good planning or 80% of 11 and a half, 12,000 pounds with most of our clients qualify for.
So keep that in mind. Basing the thinking on exactly the same thing. We’re going to be putting a new payroll recommendation out for April this year through to March next year. So look out for that email coming in the next day.
06:00 – Also that’s only going to go out to the limited companies where we do payroll for if and not a limited company, then you won’t get this, that email, and you also won’t get.
So that email, if you’re self employed or not a client of course. So keep it, keep an eye out for that. The last thing I want to talk about on this briefing is the economy and, um, your spirits now. I talked a little bit about, I’m hoping your spirits are positive and you’re in good spirits, and one of the ways, if you’re feeling a little bit, you know, a bit lost and you don’t know how this or this period of being at home is gonna last.
I suspect that is going to last a bit longer now. Let me give you a couple of reasons for that. The first one is that. I’m not sure we’re quite good up yet to deal with too many more people being ill. Okay. And so they have to do that and they have to balance out.
07:00 – How many people are affected by the virus compared to how many people are affected by the economy and both of them take lives, right.
And give life. Well, the economy suddenly gives life by writing income and, and supporting services and stuff. So it may be a while longer, and if that happens in the economy is going to take a little bit longer to bounce back. So we’ve got to be prepared for that. What is going to happen to you and your business and your savings and your, your income and your, uh, team and, and everything else.
If that happens. If you haven’t thought about that, it’s good fun to think about it when it’s not there yet because then you’re calm. You know, pressured. You’re not stressed, you’re not panicked. You’re just in the cool lights of day. Just thinking about what would happen if there was a slowdown, what would I change in my business model?
What would I change in my strategy? What tactics would I adopt? How would I manage my business?
08:00 – And that I think is an important thing to spend some time on, uh, in the next few, few weeks now. If you are one of my coaching clients, you know, we do these critical, uh, facts critical, um, focus times, you know, 50 minutes focusing on one thing, all distractions off key part of the day for you.
And I would just look for 50 minutes. Yeah. If you want to spend the rest of the time watching Netflix or YouTube or, uh, or anything else, that’s completely up to you, but I would suggest that we spend more time now while we have some time on the business and what it’s going to look like. In all different eventualities.
Alright? That’s what I’m doing for my business. I’m here to support you. I’m here preparing you. I can only do so much if you ask for help, I can. I can get involved in help you. And throughout April I’m doing a different trainings and stuff on how we can make this happen completely free to clients.
09:00 – If you’d like to join in, just comment or send us an email and don’t forget there was a 10 minute cold.
To deal with any issues you have regarding this, because if you’ve watched the videos, you’re already briefed. We just need 10 minutes. I can deal with all my clients fairly at this busy time for us. Okay, so I’ll look forward to speaking to you soon. Thanks for joining me on this briefing. Keep your spirits up.
Look after you fed yourself and your family. Look after business. Look after your teams. Look after the community near you, and we’ll get through it together. We’ll be good. Thank you. Bye.
