#Covid19 – the 5 most common FAQs about finances for creatives
Hope that everyone reading this, and their families, are safe and well.
With our expert knowledge of tax accounting for creatives, actors’ tax returns and all things taxing and sporting, we’ve been staying on top of all the complex (and confusing!) financial changes of the past few weeks.
We’ve put together this quick list of the 5 most common questions we’ve been asked about the present situation.
We are only giving short and general answers here – if you are in any doubt about your particular circumstances, call us for free advice on 08000 487626 or email firstname.lastname@example.org – we are not charging for any advice on matters to do with the disruption.
If I am receiving furlough pay, can I do any other work? YES. You can only not work for the employer who has furloughed you. It stands to reason that if you are furloughed from a full-time job, you can’t take another full-time job: but many of our clients have more than one casual or part-time job, in which case, continuing one and furloughing another is fine.
If I am receiving furlough pay for a casual zero-hours job, does that mean I won’t get the Self-Employment Support payment from my tax returns? NO. The Self-Employment Support payment will be made if you qualify on the basis of past tax returns and are still engaged in your self-employment business, regardless of any present casual jobs.
I had low/no income in 17/18 and 18/19, but lots in 19/20. Does that mean low/no Self-Employment Support payment? YES, for the moment, although we think this might change in future, so our best advice to you is to get your 19/20 tax return in as soon as you possibly can.
I’ve never had any kind of benefits before. If I get Universal Credit now, will I have to pay it back later? ALMOST CERTAINLY NOT. If you have nothing coming in now, and you aren’t ineligible because of savings, you are probably entitled to UC and you will not have to give it back once you start earning again.
Will I have to repay the “Advance Payment” of Universal Credit? YES. This causes huge, unnecessary, unfortunate confusion. UC is paid in arrears, which means that on (say) 7 May, they pay you what they owed you for April. If they therefore gave you an advance payment before you received your first payment in arrears, they take it back later, usually by small deductions from your monthly credit.
Please get in touch with us if you have any questions at all. We’ll chat to you about your affairs with no obligation on you whatsoever.
Please visit www.accounting4actors.co.uk and find out about tax accounting for creative and cultural industry professionals, actors’ tax returns, and all accounting for creatives.