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LETS GET DOWN TO BUSINESS.

Question :
I started freelancing (as a sole trader) soing social media management for a charity back in December 2019 doing 10 to 15 hours a week. During Jan to Mar I worked between 30 and 40 hours a week, not all charged work as a big chunk of the work I was doing was meetings, research (content, keyword, competitor analysis, industry research), worked on their social media strategy, website planning and coyp and social media profile set up for a client who in April, and after all the work I had done, advised he was unable to pay for my work and cancelled any future work, due to Covid19 (he is in Commercial Real Estate). I never applied for the subsidy because I continued working on one of my contracts, but this was only 10 to 15 hours a week. My questions are: can I lawfully apply for the subsidy? If so, do I qualify for the 20+ hours a week? I don’t want to abuse the system nor get in trouble with IRD/Work and Income, but everyone around me has applied and is telling me to but I want to check due to my unique situation. Thanks so much in advance for your advice!

Question submitted 08/06/20 @ 09:25am
Industry: COVID-19 Funding & Support
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  • Hi there – good on you for reaching out and just not applying before you truly understand the ‘rules’ or ‘guidelines’ – let me hunt around and see what we can find as guidance for you. You can always contact the hotline – Andy

    Good Afternoon – I have talked to Claire Dilks, from V-CFO- Her guidance:

    “As a contractor:
    • Who has suffered at least a 30% decline in revenue in any month (30 day period) between January and 9 June 2020 when compared to the same month in the previous year (or a more recent comparable period if you have been operating for less than a year);
    • where the loss is due to COVID-19 and you have tried to mitigate your losses; and
    • you were working more than 20 hours in your business (charged directly or not);
    you would be entitled to claim the full weekly subsidy of $585.80 a week for 12 weeks. The final day to claim the original wage subsidy is tomorrow (9 June).

    From 10 June the wage subsidy extension takes over with different rules. To claim the extension (8 weeks at $585.80) you will need to show a 40% revenue reduction in 30 of the 40 days immediately prior to the application (starting no earlier than 10 May) as compared to the closest period last year. You can only apply for the extension if the application period for the original wage subsidy has expired (or if you never applied for the original subsidy).

    If you apply for the original subsidy, this applies to the 12 weeks following the date of the application, meaning if you apply tomorrow the period would expire on 1 September which is the last day you are able to apply for the extension.”

    If you want to talk directly to Claire Dilks – contact claire@vcfo.co.nz

    Thanks so much for the reply and advice! I will probably give Claire a quick call before applying. Thanks again!

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