[Finance] Self employed to receive 80% of income from the Gov’t too

[LlcoolJ]

Can I send my form to you?

I know it won't be simple for me, I'm lucky my wife is the brains of the family and works in finance and very good at doing my accounts, I will have to ask her nicely [emoji2]

That's good that she can sort it. There's no mechanism to claim yet and when there is it will definitely be shite and will probably crash......

I think my son should be in school tbf as I'm basically a key worker. Dealing with hundreds of queries from clients a day....... and not getting paid. [emoji23]

Where's my round of applause? Lol.

 

[LlcoolJ]

We're not talking about the employer, we're talking about the recipient of the remuneration and the Higher Rate employee / self-employed gets £58 compared to the director's £54.67.

I think you're having a conversation with yourself.

I think it would be best if he did.

 

[WATFORD zero]

But that makes sense. If you're self employed then of course you only get to use your PROFIT for personal expenses.

The whole thing works because your NET income is being assessed tax wise. Not your gross, as that would be insane.

In your example, the guy on PAYE would have to be on a lower salary to be comparable.

Obviously.

You just couldn't let it go, could you ?

You'll be sorry

 

[LlcoolJ]

You just couldn't let it go, could you ?

You'll be sorry [emoji38]ol:

I know. I KNOW!!!!! [emoji23][emoji23][emoji23]

 

[schmunk]

No he's just saying that you're a ****.

This issue has been more than covered.

Your tone is just spiteful and frankly the complete opposite of what's needed right now.

You sound rather exercised about this. A sore issue?

 

[schmunk]

We're not talking about the employer, we're talking about the recipient of the remuneration and the Higher Rate employee / self-employed gets £58 compared to the director's £54.67.

I think you're having a conversation with yourself.

You're focusing on a small detail rather than the larger picture, and conveniently ignoring the fact that to pay the employee £100 it costs a company £113.8, whereas to pay the contractor £100 it costs £100. This is notwithstanding the tax and NI rates payable by employees and "directors" on the other slices of income.

 

[LlcoolJ]

You sound rather exercised about this. A sore issue?

Yeah, I'm dealing with numerous people who will get no assistance whatsoever despite contributing tens of thousands of pounds each to the treasury.

I'm holding back on what I actually think about your comments. Because I'm a nice person.

You are not a nice person, and I suggest that you lip it.

 

[LlcoolJ]

You sound rather exercised about this. A sore issue?

Oh and personally, I'll be ok thanks. I'm thinking about other people. Whereas you are being a complete and utter c***.

 

[drew]

But that makes sense. If you're self employed then of course you only get to use your PROFIT for personal expenses.

The whole thing works because your NET income is being assessed tax wise. Not your gross, as that would be insane.

In your example, the guy on PAYE would have to be on a lower salary to be comparable.

Obviously.

The point I was trying to make though was that your fixed costs aren't taken into account but in many cases, you still have to pay them unless you come to some sort of agreement.

 

[LlcoolJ]

The point I was trying to make though was that your fixed costs aren't taken into account but in many cases, you still have to pay them unless you come to some sort of agreement.

Well that's another issue entirely and really has nothing to do with tax / taxable income.

But I understand your point. As mentioned earlier on this thread, if push comes to shove then just cancel the DD / SO and sort it out at a later date.

 

[drew]

Well that's another issue entirely and really has nothing to do with tax / taxable income.

But I understand your point. As mentioned earlier on this thread, if push comes to shove then just cancel the DD / SO and sort it out at a later date.

Hear what you are saying but from my perspective, we should be alright. Wife is salaried so financially we are ok however she runs the local ICU so is exposed to the damn virus daily. 181 deaths today puts this thread into perspective. Not irrelevant but far from priority.

 

[LlcoolJ]

Hear what you are saying but from my perspective, we should be alright. Wife is salaried so financially we are ok however she runs the local ICU so is exposed to the damn virus daily. 181 deaths today puts this thread into perspective. Not irrelevant but far from priority.

Indeed. Hope she stays safe mate.

 

[drew]

Indeed. Hope she stays safe mate.

Thanks.

 

[NooBHA]

Update on the position with regard to those in the position of Owner Managed Companies with one Director - Drawing small Salary and drawing the remainder as Dividends

There has been a Minister Lobbying on their behalf today. She has been backed by the ''Actors Guild'' and other large organisations from Media, IT, Advertising, Music and other Industries where this practice is common. There are 1-2Million ‘self-employed’ operating through their limited companies. Consequently it is not beyond the realms of possibility that there might be some payments made to them further down the line. So it isn't dead in the water yet

 

[LlcoolJ]

The Actor's Guild, or the Film Actor's Guild?

https://youtu.be/qOH9trJLedk

 

[BN9 BHA]

That's good that she can sort it. There's no mechanism to claim yet and when there is it will definitely be shite and will probably crash......

I think my son should be in school tbf as I'm basically a key worker. Dealing with hundreds of queries from clients a day....... and not getting paid. [emoji23]

Where's my round of applause? Lol.

You are doing a grand job

 

[Shropshire Seagull]

The point I was trying to make though was that your fixed costs aren't taken into account but in many cases, you still have to pay them unless you come to some sort of agreement.

In most businesses there will be fixed costs and variable costs incurred in the running of the business - your franchise cost is fixed [whether your do 1 lesson per year or 3,000] but fuel in the car is variable, no lessons = no [business] fuel.

The IT director is very similar, public liability & indemnity insurance + accountants fees are a fixed cost and won't be any different whether they are working or furloughed. But e.g. travel and accommodation will be zero so no variable costs.

I think we're getting round to the same view so long as you concede that the money you take off your customers for providing a service [driving lesson] do not relate to an income until after your fixed and variable business expenses have first been deducted - this gross profit can then be comparable to a salary - yes?

 

[Pavilionaire]

Update on the position with regard to those in the position of Owner Managed Companies with one Director - Drawing small Salary and drawing the remainder as Dividends

There has been a Minister Lobbying on their behalf today. She has been backed by the ''Actors Guild'' and other large organisations from Media, IT, Advertising, Music and other Industries where this practice is common. There are 1-2Million ‘self-employed’ operating through their limited companies. Consequently it is not beyond the realms of possibility that there might be some payments made to them further down the line. So it isn't dead in the water yet

Where did you see this? I can't find anything on Google but would like to follow the progress.

 

[Baldseagull]

When a working director is an employee of a limited company, what makes you think they are excluded? There are plenty of working directors who are not shareholders so can’t draw dividends either. Of course dividends shouldn’t and won’t be covered but wages up to £2500 should be. Cannot see why they wouldn’t.

To get the money, the worker has to be in furlough, one man band Directors are not going to be able to administrate the company in furlough, they will be working, that is the definition of their job. If they send information to a Payroll bureau, that will be working. It is impossible to do anything related to the business, and be in furlough.

 

[Icy Gull]

To get the money, the worker has to be in furlough, one man band Directors are not going to be able to administrate the company in furlough, they will be working, that is the definition of their job. If they send information to a Payroll bureau, that will be working. It is impossible to do anything related to the business, and be in furlough.

I get that but if you have three Directors surely only one can work and the other two be furloughed? A one man band Director is certainly going to have a problem.