COVID19: The financial fallout

By March 28, 2020COVID19, Public

Chancellor Rishi Sunak’s measures appear light on relief

At the moment, the MJA is truly a tale of two situations. While many members in staff roles are working around the clock to provide superb coverage of the pandemic, there are also many freelance members — particularly those with portfolio careers — who have seen their incomes plummet.

There are also grave concerns about how many members might benefit from the various relief packages already announced — not to mention the fact that much of the money won’t be seen for three months.

Catches

In theory, freelancers who trade as limited companies can furlough themselves — but this comes with some catches and restricts the ability to look for what work is still out there.

Those who rely on a mix of part-time employment and freelance income, are also caught out; as are those who have not been self-employed long enough to provide three years worth of accounts; and those whose taxable profits exceed the £50,ooo threshold.

If you are self-employed, and haven’t already, please take the home-page poll to let us get a better idea of how many members missed out, and why.

VAT deferral

The deferral of VAT and mid-year tax payments are welcome, and many members will be relying on tax money they have set aside, but don’t forget — unless HMRC brings in some form of extended payment period — all that VAT and tax will all have to be paid at the end of January 2021. So, it makes sense to use the time you have now to complete and file your tax return as soon as the the 2019/20 tax year ends. Then, at least you will know what you will have to find in the new year.

Martin Lewis is providing clear updates on the various announcements, and devils in the details. Click here to see his post and video on the support for the self-employed.

It’s worth keeping an eye on his website for further updates and advice, or registering for his regular email updates. Click here to go to his coronavirus financial advice and rights.

You might want to think about pausing and pension payments and professional indemnity insurance, if you have it, and check regular outgoings to see if you can save by switching utility bills, broadband and phone contracts.

If you haven’t already, consider joining the ALCS — this post has more on the additional income you could be owed.

 

Jane Symons

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