Farmers Guardian
News
Over The Farm Gate

Over The Farm Gate

This Is Agriculture - Sponsored

This Is Agriculture - Sponsored

DataHub

DataHub

Auction Finder

Auction Finder

CropTec

CropTec

LAMMA 2021

LAMMA 2021

Self-employed support scheme could help farmers

Farmers could benefit from the Government’s coronavirus Self Employment Income Support Scheme (SEISS) but they need to study the small print first.

Rishi Sunak, Chancellor of the Exchequer
Rishi Sunak, Chancellor of the Exchequer
Share This

Self-employed support scheme could help farmers

The package, announced by Chancellor Rishi Sunak, only applies to the self-employed, which includes sole traders and partners.

 

Graeme Davidson, partner in Forfar- based EQ Accountants, said while the emergency measures were essentially workable, lobbying was needed on ‘one or two aspects’.

 

“For limited companies when it comes to furloughed staff a director can pay themselves 80 per cent of their salary. But they cannot include dividends,” he said.

 

“Many of our clients who operate as limited companies do not pay themselves salaries but take dividends and they are therefore losing out. It is unfair on many small hard working business owners.”

 

Mr Davidson pointed out that many of the farming businesses in his client base were not so far being adversely affected by the coronavirus disruption.

 

That was not the case however for those who relied heavily on diversifications such as farm shops.


Read More

Top ten tips on how to deal with staff during Covid-19 pandemicTop ten tips on how to deal with staff during Covid-19 pandemic
Farmers urge Government to halt statutory TB testing amid pandemicFarmers urge Government to halt statutory TB testing amid pandemic
JCB factory to start producing ventilator housings to help combat Covid-19JCB factory to start producing ventilator housings to help combat Covid-19
Digital farm learning for children provides ‘massive opportunity’ amid school closuresDigital farm learning for children provides ‘massive opportunity’ amid school closures

He added: “I am optimistic we can attract rates relief and support measures for most. But again lobbying is needed in the case of self-catering holiday accommodation.

 

"For some reason in Scotland, but not in England and Wales this type of enterprise is being excluded from grants under the Coronavirus Business Support Fund at both the £10,000 and £25,000 levels.”

 

The grants for this fund are administered in Scotland by local authorities rather than central Government.

Other details of the self-employed scheme include:

  • The individual must be trading at point of application, or would be had it not been for Covid-19, and intend to continue trading.
  • The 2018/19 self-assessment tax return must be filed by 23 April 2020 at the latest to be eligible for the scheme – which is nearly three months after the statutory filing deadline.
  • The individual must have traded in the 2019/20 tax year to be eligible.
  • The business must have been detrimentally affected by coronavirus to be eligible but can still be bringing in money.
  • Only individuals with trading profits of less than £50,000 and comprising more than half of their total taxable income, are eligible.
  • The scheme will pay a grant of 80 per cent of the average of the historic trading profits up to a maximum of £2,500 a month. This will be for three months initially, although the scheme could be extended, and that income will be taxable.
  • Individuals will be contacted directly by HMRC if they are eligible for the support.

 

Source: : Martyn Dobinson, Saffery Champness

For more information visit gov.co.uk

TwitterFacebook
Post a Comment
To see comments and join in the conversation please log in.

Most Recent

Facebook
Twitter
RSS
Facebook
Twitter
RSS