Self-employed & Coronavirus

[OB1]

And what if said Ltd company didn't have the cash at bank to pay off the employee/shareholder, but I could loan that cash to my company?

Could I loan it £20k, the business then hands it to my wife as a pay-off, and the business owes me £20k which is could never hope to pay back - can I offset the debt against tax?

If you loaned Zin £20k and he didn't pay you back, do you think you could deduct that from your income tax?

 

[OB1]

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!

I seriously meant it wasn't my business but that ought to be tax efficient compared to paying yourself a salary that meant your business simply broke even.

 

[lee one pen]

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.

You do know its the customer who wants to pay the cash so they can miss the vat out don't you!

 

[tolmie's hairdoo]

If you loaned Zin £20k and he didn't pay you back, do you think you could deduct that from your income tax?

You do know Zin turns seven figures, right?

He bailed me out recently!

 

[OB1]

You do know its the customer who wants to pay the cash so they can miss the vat out don't you!

I know lots: I'm a qualified accountant.

 

[lee one pen]

I know lots: I'm a qualified accountant.

Then you should know its the customers who push this way of paying. Yet the advice your profession has given ltd company directors has left us in the sh#t.
I'm not blaming your profession, just highlighting the irony of an accountant giving a high tax payer advice on cash.

 

[Tuearts right boot]

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.

I don't know too much about Ltd company procedure. Im sure it has its benefits somewhere along the line otherwise people wouldn't do it....Been SE for 28 years as Sole Trader and am now in ptnrshp with her indoors

 

[bluemoon32]

You do know its the customer who wants to pay the cash so they can miss the vat out don't you!

Maybe your customers, every trades guy i've ever used has asked for cash

 

[lee one pen]

Maybe your customers, every trades guy i've ever used has asked for cash

Cash doesn't work great in a limited company pal. One man band sole traders maybe.

 

[OB1]

You do know Zin turns seven figures, right?

He bailed me out recently!

I didn't but I'm not surprised.

My point being, that as a private individual, it's not a deductible as far as I am aware.

As mentioned above, I am a qualified accountant but I don't work in practice and I am not a personal tax expert or permitted to advise on the subject.