Self-employed & Coronavirus

[Cheesy]

You aren’t understanding the situation. If you are the director of a company who pays himself both salary and dividends, you still have to declare the dividends and pay income tax on them at year end. You pay slightly less tax over the course of a year than a normal employee but only a little bit, as the government closed the loophole years ago. Also, when you are doing that you often lose things like child benefit or even your state pension etc. There’s hardly any difference in tax paid and it’s easy to argue that as a business owner who pays things like rates you pay a lot more tax than a normal employee.

And 19% in Corporation Tax on every single penny of profit you make.

 

[George Hannah]

How many of the UK's 5.8 million self-employed don't need help because they are unaffected by the pandemic, or may even benefit from it?
That is the question currently taxing HM Treasury.

 

[Cheesy]

Thanks :)

I just want to keep my business going and keep my employee in a job that provides them with a living

I'll actually be OK I think but many others will really struggle.

 

[Hart of the Matter]

i really don’t see your objection to getting what everyone else who cannot hide income in dividends gets.
If you have declared income in full and paid income tax on every penny then what’s your worry.
You’ll get 80% of it like everyone else.

Shows you know fuck all. I could take a bigger salary which would reduce my overall tax from the company.

For every pound in dividend i take i have aready paid 19% corp tax and then a further 7.5% in div tax. So 26% plus in tax paid. In addition once i hit the upper threshold the total tax take is over 50%.
As a one man operation it is swings and roundabouts. So all the know nowt tossers can do one. It is not tax avoidance. I am proud of my tax payments and what i contribute. I dont fiddle the books nor do i want to. i accept that my salary aspect will be subsidised hopefully but in no way have suggested the dividends should be. So the pious pricks who know fuck all will be glad that a small business that contributes to the public purse will go to the wall.

 

[blueinsa]

@Noelsnapkin & @denislawsbackheel

You just don't get it do you? Sole directors of small Limited Companies take a massive risk forming their own business that will hopefully go on to make profit (so paying tax to the government) and that will hopefully go on to provide jobs for employees (so they can earn a living and also pay tax to the government).

You get no sick pay, no holiday pay, no rights. Dividends are a small incentive for them to do so. Why bother forming a Ltd Company if there is virtually no incentive to do so? No

SME's account for 99.9% of all businesses in the UK, they account for three fifths of all employment and around half of all turnover in the private sector.

Of course, if they have to close their employees lose their jobs too.

And you seem to take delight in them being fucked.

Wankers.

They have moved on from Billionaires to us SME owners.

 

[Cheesy]

Shows you know fuck all. I could take a bigger salary which would reduce my overall tax from the company.

For every pound in dividend i take i have aready paid 19% corp tax and then a further 7.5% in div tax. So 26% plus in tax paid. In addition once i hit the upper threshold the total tax take is over 50%.
As a one man operation it is swings and roundabouts. So all the know nowt tossers can do one. It is not tax avoidance. I am proud of my tax payments and what i contribute. I dont fiddle the books nor do i want to. i accept that my salary aspect will be subsidised hopefully but in no way have suggested the dividends should be. So the pious pricks who know fuck all will be glad that a small business that contributes to the public purse will go to the wall.

They genuinely will be glad because it's these type of people who hate those that have had the balls to go for it and make a success of things.

 

[Skip Donoghue]

I hope not, as you only pay yourself a minimum salary plus dividends to avoid paying as much tax as someone on PAYE. You reap what you sow.

Yeah.... I tell you what you pay my corporation tax bill when it's due and see if you still see it the same, the tax man gets his lot no matter what, the only people getting away with tax avoidance are the big corporations who can afford to employ such people to get round it, the man in the street, small businesses more than pay their way

 

[Blue Maverick]

Whilst I have every sympathy for the self employed if they get support will they once we get back to normal stop doing things for cash and pay their share of tax like I’ve done since I started working? Christ my window cleaner has better holidays than me, obviously he only cleans a 100 windows a week ;)

 

[sky tot]

Whilst I have every sympathy for the self employed if they get support will they once we get back to normal stop doing things for cash and pay their share of tax like I’ve done since I started working? Christ my window cleaner has better holidays than me, obviously he only cleans a 100 windows a week ;)

And will the public stop asking will it be any cheaper if I pay cash ?

 

[tolmie's hairdoo]

I am an employee of my own company - it pays PAYE on the monthly salary I can afford to take each month - I pay dividends tax over £2k allowance, pay VAT at 17.5 per cent, pay corporation at 20 per cent and self-assessment tax.

I take a small salary each month not to avoid tax but because my earnings fluctuate each month, there hasn't been any real benefit for years on receiving dividends, or directors' loans, which they essentially are to make up the monthly wage shortfall.

I then spend the next ten months saving like crazy to meet the corporation tax liability which is due that following December - so always playing catch in terms of liabilities - I haven't had a day off work or sick for 25 years, I work seven days a week, even when on the one week's holiday a year I take my family on.

I also work from home - plenty of people now doing that are struggling to cope with the adjustment - try it for 25 years when you can go a month with no invoices being paid.

Everyone has their own path to plough, difficult for most but the very privileged.