Self-employed & Coronavirus

Discussion in 'Off Topic' started by Ric, 22 Mar 2020.

  1. flook

    flook

    Joined:
    17 Jan 2009
    Messages:
    2,554
    Location:
    dreamland
    exactly right, government has tried for 20 years to bring in IR35, losing something in excess of 90% of cases when challenged in court, they've basically thrown in the towel in terms of fairness, and left clients to make a business decision for their sub-contractors, which is just wrong. Clients, as you said, have no interest in taking any risk and most are just applying blanket bans
     
  2. Rammy Blue

    Rammy Blue

    Joined:
    23 May 2008
    Messages:
    23,013
    If true then it’s better than a kick in the bollocks.

    I’m slightly luckier than most in that I have an office that gets rate relief so will get the £10k payment too.
     
  3. tolmie's hairdoo

    tolmie's hairdoo

    Joined:
    20 Feb 2008
    Messages:
    18,293
    Location:
    behind enemy lines, regularly
    I still pay a stamp via my monthly PAYE to ensure I get a state pension entitlement.

    It's a complete red herring by some people to suggest a proportion of salary being paid in dividends is some sort of dodge.

    I pay self-assessment, corporation tax, dividends tax, PAYE.
     
    Ric, flook, AlgarveBlu and 1 other person like this.

    ADVERTISEMENT

  4. Chris in London

    Chris in London

    Joined:
    21 Sep 2009
    Messages:
    9,954
    well, it’s a dodge in the sense that it leaves you personally paying less tax but why shouldn’t you? Nobody is obliged to set up their business in the way that best suits that taxman. You probably did what you did on advice, and it was perfectly legal. And yes, you take dividends out after you pay your corporation taxes. So there is nothing wrong with the way you have set yourself up legally or morally.

    And, for the benefit of the country generally you are not working in the way you normally would.

    but the government in its wisdom has chosen to say ‘fuck you.’

    when they said ‘we will do whatever it takes,’ they were lying.
     
    Psychedelic Casual likes this.
  5. tolmie's hairdoo

    tolmie's hairdoo

    Joined:
    20 Feb 2008
    Messages:
    18,293
    Location:
    behind enemy lines, regularly
    The irony isn't lost upon me that if I continue to bring in money of any description, however small, HMRC Castlefield will be on me like white on rice if I don't pay my monthly PAYE on time.

    So, you can't have any financial assistance, you can't make yourself redundant, but you can hand over what little cash you struggle to make as per norm.
     
  6. tolmie's hairdoo

    tolmie's hairdoo

    Joined:
    20 Feb 2008
    Messages:
    18,293
    Location:
    behind enemy lines, regularly

    I understand that mate but even then, It was not a dodge for me. I was ordered to do it by the media organisations I supply, otherwise, no work. Pretty much standard fare for any freelance media types.

    I derive income from various outlets, so never a question of taking piss out if IR35 - I know some big fish at the BBC who were essentially only being paid by them and that was indeed a tax dodge.

    Dividend allowance is £2k per couple, so me and wife can take £4k out of the company without paying tax...until they tax you 20 per cent on that for self-assessment!!!

    I was purely sole trader (self assessment) for the first 15 years of my working life, but I couldn't keep up with paying tax twice a year in July and January.

    Dividends has gone from non-taxable, to £5k allowance per couple to £2k. There is no real tax advantage that I can perceive, certainly seem to have missed the boat on that front.
     
  7. Chris in London

    Chris in London

    Joined:
    21 Sep 2009
    Messages:
    9,954
    sorry, blue, I knew some media organisations insisted on that set up, I should have remembered. Anyway, I wasn’t intending to suggest there was anything dodgy about this, it’s perfectly normal and perfectly legal.

    The government’s response seems to be ‘live on your credit cards.’ I can’t actually understand what else people in that situation are supposed to do.
     
  8. tolmie's hairdoo

    tolmie's hairdoo

    Joined:
    20 Feb 2008
    Messages:
    18,293
    Location:
    behind enemy lines, regularly
    I didn't take it that way buddy, just highlighting there are so many different circumstances out there for various jobs and professions.
     
    Chris in London likes this.
  9. Presumably construction workers operating under cis with 20% deduction at source will be eligible for self employed assistance under the current rules?
     
  10. Didsbury Dave

    Didsbury Dave

    Joined:
    1 Feb 2007
    Messages:
    30,354
    A company can not trade for a few months but still exist. We are still paying bookkeepers, IT guys etc who could be keeping things ticking over.
     

Share This Page