Arg Grant Spending

[Marco1000]

As a newly self-employed sole trader in early 2020, I haven't been entitled to SEISS until the most recent grant 4. It was paid however it was a nominal amount due to three months of profit being spread across 12 months and taken as an annual turnover.

I discovered I could apply for an additional restrictions grant from my local council a couple of months ago and after much chasing and sending of tax returns, service agreements etc (my business is in leisure/sport/education), I was approved the amount for non-rate payers of around £6500. My council were very good and their application process wasn't too difficult or stressful and also they offered non-rate payers such as myself a good amount, not the token £500 or £1000 I've seen some councils paying out.

Now my question is in relation to the use of this grant. I've already moved it from my business account to my personal account because that's where most of my direct debits come out of. I'm a sole trader not a limited company so I am essentially the business. I've read the ARG scheme is "not intended" as a wage supplement because the SEISS is the wage support scheme but I didn't receive SEISS and was on universal credit for a short period which obviously didn't cover living expenses and outgoings. It's for business support.

Can I essentially use it to backdate my wages or provide wage support/personal reasons? The ARG is for November - March and the SEISS 4 I received February-April.

 

[Marco1000]

I guess the reason I am asking if like many of these schemes, it's not exactly clear what is business support etc and is paying my own wages with this very reasonable amount business support and will the grants or your spending ever been audited or questioned i.e looking at bank accounts.

I could spend the whole amount on advertising and equipment but then go into credit defaults and debt because I can't pay my bills. I can save the money for future use. I can pay myself a wage. Or I could send myself to Dubai for three weeks under the justification that it's business activity as I am exhausted the same way Sir Alex used to send Cristiano to Dubai for recovery under the Manchester United business. That's what I am trying to say. All these schemes are open to interpretation.

 

[Alan]

I'm confused. If your are self employed there are no wages to you, surely, you are the business and the business is you.

You can't pay yourself a wage, if you employed a member of staff you could pay them a wage.

So saying

ARG scheme is "not intended" as a wage supplement

Is non sensible in terms of a single self employed person as there are no wages. You earn what the business takes less what the business spends and tax due.

 

[Marco1000]

Thanks for the reply. That's kind of what I mean, it's kind of difficult to decipher all the terminology. I am a self employed sole trader and sole traders are eligible for the ARG grant obviously pending approval from the different local authorities who all have slightly different eligibility requirements.

The quote "ARG scheme is not intended as a wage supplement" is from government guidance to local authorities.

When I meant take it as a wage, I guess I meant not officially as I'm a sole trader as you say but more justifying my spending of the grant. Because I am self employed and and as you say, I am the business, I can feel free to use the grant wherever I decide. When they say it's meant for business support, I was trying to figure out does that mean I have to starve and spend it only on official business activity which can be shown i.e equipment or advertising or can I spend it freely because I am the business. Regardless it's much needed support, and goes a very small way to replacing some of the lost income throughout this whole period, but I don't want to do anything wrong.

 

[Alan]

The quote "ARG scheme is not intended as a wage supplement" is from government guidance to local authorities.

I'd read that as -> Councils - don't give the grant to self employed people who request or justify the grant to supplement their staff's wages that are on PAYE as that should be covered by Furlough schemes