CV19 Update – Self Employed Support – Richi Sunak

Hi, a few minutes ago, chancellor Ritchie Sumac went online and announced his package for self employed people suffering under this tremendous pain and uncertainty caused by this, Corona virus 19. And so today I just want to give you my thoughts on it, give you a bit of a summary on that, and invite you to a more detailed summary tomorrow and also to help answer your questions on tomorrow's interactive.

Hello, my name is Gordon D'Silva. I'm the owner of a multi award winning film of chartered accountants. So Gordon's night and without any further ado, let's just get into what was announced today. The first thing that was announced today was that the chancellor was at last bringing some measures together for all the self employed people.

Now, he had announced the measures for the employed a couple of weeks ago. And hadn't announced anything for self includes. So a lot of self employed clients of mine, well worried, concerned about the uncertainty, the uncertainty causes anxiety. They don't know where they stand. And as a result, you know, this delay wasn't helping.

Now the chunks were city and to think about it a lot, but ultimately it's gone with the same deal that other countries in Europe have gone to three weeks ago. So what he was thinking about, I'm not so sure, but in the meantime, let's, let's be generous and say, is it lost given up? Very, very,  generous offer to self-employed people.

And we'll cover that in in a moment. So the offer that is being made is for self-employed only. It does not cover the individuals who work through a micro limited company who to limit their liability of traded through a limited company. They pay themselves small salaries. They see how business goes, and if they make a profit, they take a dividend down.

Now, those people are going to get very, very little out of this. They're going to get a percentage of their salary and 80% of their salary if they follow, and we'll talk about that on tomorrow's training in more detail. What does furlough mean? How do you follow? How do you get your money. But also what a he's, and so what he's left is left out that massive group of people that could be over a million,  workers in that industry.

The gig economies, sometimes some people call it micro limited companies or personal service companies. Sometimes they may be referred to whether they actually personal service companies or not. They typically run by one business owner with, with a couple of staff sometimes, but they don't own very much as a salary because they don't know how much profit their business can afford to pay them.

So let's leave that alone for a second. We'll cover that on another training another day. But today for the self-employed, what is the deal? So the first thing is you have to file returns for the last three years ending 2019 so 2019 2018 2017 those are the three years you have to file self-employed tax returns for.

Based on my understanding from today's announcement from 40 minutes ago. There is no leeway, right? If you've been trading for one year or two years or two and a half years or two years and three quarters, you are game going to get nothing. All right? Now that doesn't mean, so that means three years plus another year because they want you to still be self employed.

This is, that's four years training, right? So they want you to  they want you to demonstrate to them that you've still been trading up to now. Well up to the 1st of March, which is when this this benefit kicks in. So the first thing is three is accounts. So have you got three as accounts, 17 needs to be filed, 18 needs to be filed, 19 needs to be filed.

If you haven't followed 19 yet, he has generously given us four weeks to get your returns filed for 2019. And if you follow them in the next four weeks, that will count. And if you then have 2019 18 and 17 I keep repeating that because it is a big one, and then you're still trading in 20 then you qualify for this taxable ground.

So that's the next little switch we've got is this is a taxable ground, so you will have to pay tax on this amount. That's being given to you, it's not being given about even they're going to give it to you in one hand, but obviously take some away in tax on the other, which, which is fair enough. If you had income, then you would get taxed on that income, wouldn't you?

So, yeah. Fair enough.  and it may cover the expenses and stuff. So that's the first thing is we've got to, we've got to bear in mind that we are under difficult situations. He has put . A lot of money into this particular benefits, this ground. And so, you know, we've got to be grateful for that. He hasn't left us out completely in the us, meaning you, myself employed,  clients and those watching me who are self employed.

So, so that's the first thing, three years, and then over those three years, you've got to have average profits of 50,000 pounds or less. So. If you ha, if you take all those three years together, you divide by three and you figure that you get is under 50,000 pounds. So just say the first day it was 50 the second year was 40 the third year was under threat.

Third year ago was 30 to 30 40 it's 70 plus 50 120 I'm dicing with the danger here, doing mental thing on a life cold. Nevermind. That'll be a 120 divided by three is 40 that is under 50 you qualify. So that's the first thing is you qualify. Now what do you, what do you qualify for if you qualify for it?

We'll talk about in a second, but what if your average over three years is over 50,000 pounds? Some of my clients who work with me and I'll help them with them, with their business planning and the business strategy and pricing and marketing, they tend to earn more than 50,000 pounds because they do really well.

They offer much more value to the marketplace and the marketplace rewards them with more profits because they offer more value. So if that is you, I'm sorry to say that you get nothing.  at the moment, that's based on what I've heard, right? You get, if you're over 50,000 pounds, on average, you get nothing.

So of your income for 17 was 54, 18 was 60 in new income, four 19 was 70 or 70 then obviously the average is going to be over 50 without them, without a doubt. And so that's not gonna qualify you. So that's the unfortunate part for you. Hopefully you've also taken part of my lessons. If you're one of my clients and you've saved some money and you've put aside, you know, 10 to 15% of your income for a rainy day, and that might help out.

So that's the, that's the over 50 let's look back again. If you're under 50 and you do qualify, what do you get? Well, what do you get is 80% of two and a half thousand pounds as a maximum. So even though 40,000 or 50,000 pounds is more than two and a half thousand a month. They're limiting the capping, which is the same as the done for employees.

So it's probably fair that capping the amount of the ground, the taxable grounds for self employed, they're capping at two and a half thousand pounds, and you only get 80% of that, and then you will be taxed on that 80% so let's take for example, let's try to keep my maths reasonably simple because I'm alive.

Let's say you go your average you are, which was, Oh, it was a 2000 pounds, so you earned a profit on average of 24,000 pounds. What they will do is pay you 2000 pounds times 80% which is a 101,600 pounds, and then you pay tax on that 1,600 pounds per month. If you qualify, they're going to pay you for three months, right?

So if you qualified up to 19 regardless of what happens in 20 they're going to give you three months taxable grounds, which means you're going to get 1600 1600 1600 so I'm not going to do that mental arithmetic on that because I haven't got my calculator out and I always use a calculator or a spreadsheet.

So. In that respect. You're going to get a lump sum in June, but what happens between now when you've already had no pay for probably about two or three weeks and you've got no pay for for me month, April, and you will no pay for me while unfortunately you just have to.  manage and there is this universal credit, which I'll talk about in a second, which we recommend that you look at.

There was a delay on that, but you can't get an advanced loan on it. But let's just, let's just talk about this. This grant first, so 1600 pounds a month, times three is what you're going to get in June. Yeah, so I did a 1600 3,200 plus. Another 1600 is 4,800 pounds. All right? He will get that in your bank account in June.

There'll be some applications to put in. You may have to jump through a couple of hoops to make sure you're not fiddling the numbers because obviously there is a risk that some people will just be greedy and try to fiddle the system. That's why it's difficult for the government. Just don't do it many other ways is what they've come across.

So you'll get that 4,000 odd in on the 1st of June, hopefully, or near thereabouts. The revenue you've got to do the calculations are going to set it up. They're going to set up a system for it, and so that's coming you away. So what do you do in the meantime? The first thing you want to do in the meantime.

Is, you know, look at cashflow. You've got to minimize your outgoings. You've got to look at, see if the council will postpone your council tax. See if there's, you know, you can make some savings on, on how many takeaways you have over drinks. You get in all of that. Just look at the same, if she's got to get, make your savings last as long as it's necessary.

It may be three months, it may be five, it may be six. We know. No one knows right. And so the next thing we've got to consider is how long could it be? Could it be more than three months? And what if, what if it doesn't last more than three months? But by the time you get back to work, you. Don't have much income because it's a slow pickup.

people are just coming back. They short of money themselves. They come buy your services. That puts you off for a month or three,  or your customers have gone bust, you know, whatever it is. That could be so many things that could happen, but what are you going to do instead? And we'll talk about that on tomorrow's training.

If you joined me on that. So, so join me on on that training if you want, if you want a plan on how we, how we see things panning out and what you can do while you're home without any work to do. And so you've got plenty of time on your hands. You can either watch Netflix or you can come and join me tomorrow and we'll go through some strategies to help keep you positive, to help you keeping.

Looking forward because ultimately that's really where you're going to make your, your  best deal for you and your family and your customers for the coming years to come. So we'll do that. And then,  like tomorrow, right? So we've now gone to apply for universal credit. Now, universal credit typically takes five weeks to kick in, so you're not going to get your first payment for five weeks.

But what a chunks, a Richie sumac has said is that he will advise, he has agreed to with bombs loans. In advance of the five weeks payment so you can apply for a loan. Now, I've got a caution you here because I've, if you're not good with money, getting a big loan in one go is quite dangerous because the temptation is to spend it in one.

Yeah, one blast. Really have a great time and then find out you got two to three weeks still to go without the income. I've seen that happen before. It's not good. It is. Why many people who win the lottery within two years, I've got no money left. They just haven't understood, haven't been trained to hold onto the money, invested properly to give them the,  the lifestyle that they could have had they done that properly.

They lost it away and all of a sudden it's gone and they wonder where it all went. So we'll cover a little bit of the, the mentality for the future. We can't do anything about the pulse and pulse. Is, don't we understand how much pain you're in when the sound, how damaging this period is for you? We understand how worrying it must be, how much anxiety there must be.

However, we, having said that, we give ourselves a better time as entrepreneurs, as business owners, to have a little bit of a pity party for ourselves, and then we got to dust ourselves up, down and go, because you know. If we don't go and get a get things done, no one's gonna do it for us. Is that, is that a fair assumption of fair reflection of reality for you?

I know it is for me and my business, and I know it is for many of my, my clients because they work really hard to, to build a business to provide for themselves and their family and the team members and their families and the community at large and the clients they serve offering great value. And I'm sure you are the same if you're watching this.

So that's, that's the next thing is we, we've got it. So we've got to get the unit, got the cashflow, getting universal credit in. If you're qualified and on tomorrow's training, we'll talk about the other, you know, positive things about what you can do for your business to get it ready for, for starting in, in the next few months when this thing all dies down.

Hopefully. 40 poor use of word dies down, but the onsite, what? I mean, people are suffering, people are getting hurt, people are dying, people are losing family members. And it is the most catastrophic thing to happen in set such speed.  you know, if you know, my personal story, you know, I, I feel for you, I understand, you know, if you're in that pain, I understand that.

And,  I also understand, but. You know, sometimes these things really test us and we've got to then pick ourselves up and somehow find the strength to move forward. And I'm sure as a business owner and with, you know, the support we're going to be offering the business community over the next few weeks.

We're going to be on live regularly to offer a advice to help you start rebuilding your business from the ground up while you have the time on onto Moscow. So that's the next thing. We've talked to, so we talked about the 50,000 average for three years. We talked about in three years, nearly four to be fat.

Then we've talked about that it's a taxable bronze, haven't we? We've talked about the 80% of a max of two and a half thousand pounds. If your average is only a thousand pounds a month, and you're only going to get 80% of the thousand pounds, if you averages 500 pounds, then you're only going to get 80% of 500 pounds.

So just bear that in mind. If you haven't filed yourself assessment, we've talked about that before. 19, you go one one month, well, not, not quite a month, four weeks from today to get that return filed. If you need help, call us. We will help you. You know, we all very quick at getting these things done. We will look after you and we will make sure we get your return in.

The next thing is universal credit. We've talked about 90 2019 filed and that may or may not be penalties for filing your 2019 return late. I'm hoping there won't be, but I suspect they probably will be because it's given us four weeks to get the claim in. But he may not give us the penalty off, which is a hundred pounds plus some of the percentage of the tax you out.

Remember, if you're self employed now, if you are due to pay tax in July, which you probably are, if you filed your return where you are earning a reasonable amount, then you can defer that July payment until January. So keep that in mind because that is important for you that you know that you can preserve that cashflow until January.

And it may be late to, depending on all of the, on a whole load of things. Being determined right now, how this Corona virus 19 is, is playing out and how we can keep the curve down and how we can protect the population in the NHS stuff who are absolute heroes, by the way. They do a clap night, a national clap tomorrow for them, and I'm sending, going to join in for that.

So, so it is really important that we,  we, we, we look after ourselves, look after our families, self isolate, get some exercise, have keep a good diet. It's really hard to, to meet the wrong foods and, you know, do the wrong things, you know, maybe drink too much. We need to now get the POS that this is here for the next two or three months.

And we now need to build up our emotional strength. We need to build up a mental strength because you know, we need us, you know, we need each, we need ourselves, we need our families. We need to protect our families, we need our families support. We need, we need to support them. And of course we need to support our customers.

And our. And our clients and our patients, we need to look after our teams. If we're still dealt with teams or we have teams, we need to look off of the team's families in due course, right? So we need to be, we need to be strong and, and I'm here to help you look, build that up.  you know, starting tomorrow, now on our Kohl's.

So that's, that's that for the, for, what else have I got to talk to you about?  and I think that's about, I've covered all the points I wanted to cover. So tomorrow we're going to be running, another one of these. If you'd like to know more, I'll put the link below how you can sign up. As soon as I get the link, I'll put it on this post.

Keep an eye on this post, and we'll put some links on and what's happening tomorrow and what are we going to cover? And you'll build a see if it's right for you or it's absolutely perfect for you, one of those two, hopefully. Right? So, like I said, you know, we've got to get ourselves ready for. When this thing clears, we have at the moment got a whole load of spare time.

I haven't too much because I'm still supporting clients with videos like this for you. I'm telling you, many of my clients are just laying in a laying idle because they, everything's closed down, and so a year is an opportune moment to now start building all emotional and mental energy. To get started.

We can solve building up business plans or marketing plans. We can start building some marketing assets. We can start looking at the value proposition and our pricing structures. We can start building some, some brochures or leaflets or pricing models that we can offer clients. We can start looking at what type of services we want to offer and how we can enhance the service to really get a running start of this.

Many, many businesses going to be really upset and they're going to take the eye off the bull. And come the day when everything starts up again, that they're going to be so slow off the Mark and that will not for you. If you're hearing this message, I want much more than that for you. So I'm here to support you.

If you would like some support, if you'd like some camaraderie working with other business owners like me, like you. To support each other. There is a, a thing called a mastermind, if you've never heard of it, and a mastermind is a pretty powerful concept. I, I read about it probably about 20 years ago in a book by a guy called Napoleon Hill.

And, well, he basically says is, you know, when you get two people together, you create a force greater than two. You create a force, sometimes greater than three. Because the two months coming from two different positions have this ability to come up with new ideas, new strategies. We've evolve. We've already helped other businesses think of new ways of using their spare time in their business capacity and other ways.

And I've heard other brilliant stories. There was one excellent story of a be instructed chairman. I mean, if there's one thing that's got really famous is Joe wakes is go really famous, isn't he? By offering his. Is clauses online for free. And there's another client or read about in a, in a, a group of our men we're in.

And he had a gym as well. He did the same thing. Now he actually said to his. His clientele. Look, you know you, you're, you're, you may stop your, your 35 pounds payments, but let me tell you what I'm willing to do. I'm willing to give you online classes for what you can do in your home, and if you keep your 35 pounds coming in, we'll be able to keep our team together so that we're here for you when you come back.

And virtually no one canceled. And loads of them said, look, we're happy to support you. And yes, we'd like your exercise philosophies online. So please don't feel that there is only one way. There may be other ways of turning your skills into either business now will potential business later. If you need the money now than you need the money now, and you may want to try to go into that business like this.

This guy did at the gym. If you don't need to be a deal with the money, now build a Goodwill, which is what Joe wicks is doing, right? He is a, he is building Goodwill. And when this all calms down, people are going to remember his name and he's going to be able to sell online courses for X. It'd be crazy if he didn't with his new found,  celebrity for like mini celebrity.

So look, I've gone off. From that because I really think there is a time and a place we can get this tax money, right? We'll get this grant, we'll get the universal credit, but ultimately we need to get our businesses back on are on their feet. We need to get ourselves on our feet and we need to start with that.

We then need to get up. This is all our feet and then we need to get appliance. To support us with the extra value, extra great stuff we're going to be doing for them, and that's what I'm going to look into to help you build from tomorrow onwards. Okay. That's it for me. This is Gordon, the silver, wishing you every health.

Please. Self isolates even if you don't have to. Just isolate and, you know, go off of your once a day exercise, make it work. Get plenty of fluids in, preferably water and you know, just keep yourself mentally sharp. Feed your mind with good stuff. Maybe turn off the Netflix, turn off the news, give yourself a news diet.

Maybe five minutes, 30 minutes a day. Because it can, you can get sucked into this thing. Come off Facebook, come off. Don't tell Facebook when I'm on, but I'm on Facebook. Come off your social media. If it's not positive and supporting you and encouraging you and cheering you up, if it is. Again, keep on a social media.

Dot. Do it with  purpose and the purpose being, keep yourself strong mentally, emotionally, physically to build your business, to fight another day. All right? This is a golden wishing the NHS every strength. You guys are my heroes. Your putting yourselves in harm's way every day you go to work. And I am so proud to have an NHS like you.

I know my taxes are going to the white place. When I see you guys, and you need a pay rise. I'm going to keep campaigning for a pay Raj and NBN OB for all of you guys, because you know, without you, this country would be in a worse state. We need you most like now or I that goes for all off forces, right?

A police force and ambulance service and fire brigade and even the RNL I right. We all, these guys are just unsung heroes. They put their lives in danger too for us and beyond forces as well that we owe them things because sometimes when we need the help. All right, this is golden wishing you well.

Thank you very much for listening. And I hope that you get through this with the same. Energy, and, and even more so than you went, and then you came into it with, we come out of it with that, like, I take care all the best. Goodbye. I'm closing off now. It's time for a bit of a dinner. Thank you. Bye.

Okay.