Self-employed & Coronavirus

[Bluesince1979]

Just spent an hour on the phone to a financial adviser

One man limited companies can claim under the company retention scheme and although cannot do any fee earning work we can tick the company along with admin/advertising whilst claiming 80% of salary (only. No dividends etc).
This will be paid in a 3 month lump sum end of april

 

[lee one pen]

That's fair though, isn't it ?

How can that be fair. The self employed pay far more tax. I pay £50 a week tax on fuel alone never mind materials, rates, income and corporation tax.
Anyone who thinks the self employed are tax dodgers is badly informed. All dividends are taxed as earning but they are not counted in this bailout.
Absolutely disgusting what they did last night.

 

[Tuearts right boot]

How can that be fair. The self employed pay far more tax. I pay £50 a week tax on fuel alone never mind materials, rates, income and corporation tax.
Anyone who thinks the self employed are tax dodgers is badly informed. All dividends are taxed as earning but they are not counted in this bailout.
Absolutely disgusting what they did last night.

You never done a 'cash ' job then....not one penny.....

 

[lee one pen]

You never done a 'cash ' job then....not one penny.....

Have you ever paid for one missing the vat out.
Come on pal, are you an angel?

 

[Tuearts right boot]

Have you ever paid for one missing the vat out.
Come on pal, are you an angel?

Of course I have...and I'm vat registered and ive put stuff through that maybe in hindsight I shouldn't have done....we've all done it,by mistake of course. We are after all, only human.

 

[OB1]

Have you ever paid for one missing the vat out.
Come on pal, are you an angel?

Cash job's i.e. taking cash for work done and not declaring it as income (for VAT or income tax) are illegal and quite different to operating in what is, legally, the most tax efficient way.

Customers are entitled to pay cash; it's not their responsibility to account for that.

 

[OB1]

Thanks mate, but my wife in a teacher and draws her own salary from that, she's not on my books for anything more than a shareholder.

And none of my business what your share structure is and whether your good lady receives dividends but, if she did, that could be tax efficient for you. :-)

 

[tolmie's hairdoo]

Just spent an hour on the phone to a financial adviser

One man limited companies can claim under the company retention scheme and although cannot do any fee earning work we can tick the company along with admin/advertising whilst claiming 80% of salary (only. No dividends etc).
This will be paid in a 3 month lump sum end of april

Thanks mate, but that is the crux for me.

I can still earn more scratching a living than from taking 80 per cent of a very basic salary for the next three months.

If all I did was admin and stuff, my business would cease to exist within a fortnight.

My business does not exist without me. It is my intellectual property and skills which sustains it.

I do not trade in goods as such.

 

[lee one pen]

Of course I have...and I'm vat registered and ive put stuff through that maybe in hindsight I shouldn't have done....we've all done it,by mistake of course. We are after all, only human.

It doesn't mean you are not paying your taxes though does it pal.
I'm sick of all these people claiming the self employed are tax dodgers when the opposite is true.
The only reason we have gone down the dividend route is through the advice from accountants. Dividends as you will know are still liable for tax.

 

[tolmie's hairdoo]

And none of my business what your share structure is and whether your good lady receives dividends but, if she did, that could be tax efficient for you. :-)

50 per cent equal shareholders. We get the same equal dividend each month, dependent on what is left after my own salary, expenses and liabilities!