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PostPosted: Thu Mar 26, 2020 3:08 pm 
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why not it will be a very handy database for the inland revenue when things get back to normal :wink:

And as Sussex says in exchange the self employed could do some of this voluntary work

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PostPosted: Thu Mar 26, 2020 4:05 pm 
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Of course, if you had to continue paying that then that would be a real bummer because you wouldn't be getting it back via the scheme.

I suspect any financial offerings will be on the basis of drivers not working.

If they are not working they should leave the circuits and/or give back the rented vehicles.

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PostPosted: Thu Mar 26, 2020 4:26 pm 
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The Mail are suggesting the self employed will be offered up to £1,700 a month based on 80% of their net income.

Would that be different than their net profit?

https://www.dailymail.co.uk/news/articl ... Sunak.html

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PostPosted: Thu Mar 26, 2020 5:00 pm 
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edders23 wrote:
why not it will be a very handy database for the inland revenue when things get back to normal :wink:

And as Sussex says in exchange the self employed could do some of this voluntary work

People have to go on line and fill in the form to be a volunteer. They are not going to come and ask you.
I have filled in the form and I am waiting for verification. How many of you have done the same?

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PostPosted: Thu Mar 26, 2020 5:05 pm 
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How many of you have done the same?

Image

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PostPosted: Thu Mar 26, 2020 5:13 pm 
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Sussex wrote:
The Mail are suggesting the self employed will be offered up to £1,700 a month based on 80% of their net income.

Would that be different than their net profit?

https://www.dailymail.co.uk/news/articl ... Sunak.html

Depends on precisely how things like net income and net profit are defined, and that's always a bit woolly. The Mail says:

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There is speculation that around two million workers could benefit, potentially getting 80 per cent of the net income they declared on previous tax returns, up to a limit of £1,700 a month.

If an accountant does your tax return then net income will be the figure used before the personal allowance is deducted (personal allowance was £11,850 last time round).

'Profit' is usually more about what would be shown in a set of accounts that your accountant might produce.

'Net income' as per the Daily Mail and what the scheme will probably be based on is broadly similar to profit, but slightly different.

There are all sorts of differences between the two, but an important one is how the costs of a vehicle is treated.

An accountant will take a depreciation charge off your turnover for the cost of the vehicle to spread it over an appropriate number of years. For example, if you buy a car for £20,000, an accountant might deduct a depreciation charge of 25%, or £5,000, for the first year.

However, for your taxable income HMRC does things differently, so instead of £5,000 depreciation you can deduct capital allowances, which I think is generally 18% per annum, but this might be a lot more for things like electric vehicles rather than bog standard petrol or diesel motors.

But it'll be the taxable income declared on your tax return that the scheme will be based on, not your profit declared in a profit and loss account.


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PostPosted: Thu Mar 26, 2020 5:21 pm 
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But I see the Mail is suggesting a cut of point of £50k net income, as opposed to the £30k mentioned by the Sun last night.

So that might mean a small number of drivers who might have missed out based on the Sun's number might now be included, but for the vast majority of drivers the difference is academic :?


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PostPosted: Thu Mar 26, 2020 10:06 pm 
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There was info up on the gov.uk website earlier

They will contact you and that starts the process but no money for 3 months anyway

As for volunteering I still have some customers to serve and very few drivers available so not too sure what I would be able to do but if things get any slower maybe I will be able to help out

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PostPosted: Thu Mar 26, 2020 11:41 pm 
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edders23 wrote:
There was info up on the gov.uk website earlier

They will contact you and that starts the process but no money for 3 months anyway

As for volunteering I still have some customers to serve and very few drivers available so not too sure what I would be able to do but if things get any slower maybe I will be able to help out

If you sign up to the volunteering you set your own times. when you are available you log into their app.

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PostPosted: Fri Mar 27, 2020 3:42 am 
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StuartW wrote:
But it'll be the taxable income declared on your tax return that the scheme will be based on, not your profit declared in a profit and loss account.

Actually, forget I said all that earlier :roll:

The tax return does use the word 'profit'. My accountant gives me copies of my accounts and tax computation, and supporting schedules, to retain, but just gives me a single copy of my tax return to sign, so I don't have copies on file.

So I was looking at the terminology used on my accountant's tax computation, which isn't the same as per the tax return.

But looking at blank tax returns online, the difference is between what they call 'net profit' (which sounds more like a set of accounts) and 'taxable profit' (which is the figure used to calculate how much tax you owe).

To confuse matters, the official government statement on the grants uses the term 'trading profits', which sounds more like an accounting thing to me, but I think 'trading profits' will just mean the same as 'taxable profits'.

So basically, it's the figure from which the annual personal allowance is deducted, which is then multiplied by the applicable tax/national insurance rates to work out how much you have to pay HMRC.


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