What help is there for the self employed?
It seems that every day the realities of the situation the economy is in just gets worse. I am sure you are like us you are pleased that the government is pumping money into small businesses. But what happens if you are self-employed or trade as a sole trader rather than limited business?
So, included in this blog is a summary of what help is available for you if you are self-employed or worried about your personal financial affairs. We are monitoring this closely and will be in touch once we know more.
Universal Credit is a monthly payment to help with your living costs. It is available for anyone, even if you are self-employed. But as always you need to meet fairly specific criteria; namely you are on a low income or out of work. If you’re expected to look for and be available for work, then it needs to be identified whether you’re ‘gainfully self- employed’.
Gainful self-employment means that:
your main employment is self-employment
you have self-employed earnings
your work is organised, developed, regular and in expectation of profit
As you would expect, you must provide evidence about your business and what you are earning through your business.
If you’re gainfully self-employed, your Universal Credit payment may be calculated using an assumed level of earnings, called a Minimum Income Floor. It’s based on what an employed person on minimum wage would expect to earn in similar circumstances. If you earn more than this, then your Universal Credit amount is based on your actual earnings. If you earn less, the Minimum Income Floor is used to work out how much you can get. You may need to look for additional work to top up your income.
From 17th March you can ask for up to a three-month repayment deferment on your mortgage to give you some breathing space. This deferment applies to homeowners and buy-to-let landlords, to allow them to pass on the payment reduction or deferment to their tenants. It will not affect your credit score. However, you must agree your repayment deferment with your bank, otherwise you may skip a payment and it will show a default on your credit score. Please speak to your bank if you want to organise a deferment on your mortgage.
Talk with your network and get creative
Now is not the time to lie low. Now is the time to get talking to your network. Firstly pick up the phone, otherwise email or message via social media. They may be aware of some opportunities for you to generate some work. Now, is also the time to be creative with your skill set. For example, if you run a hospitality business and can’t work from home, how about offering skype one-to-one cooking classes?
If you lost money due to an event being cancelled the outline is:
Contact the organiser first
Organisers that postpone events don’t have to refund until they announce the new date
Ask your ticketing platform about refunds
If you are struggling to get a refund then your credit card provider could help with a refund