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

[NooBHA]

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

A client of mine told me - She is an actor who is friends with the MP

 

[LamieRobertson]

 

[Questions]

Did they offer you 20% less but no questions asked?

No they went for 25%......... fcckin crooks.

 

[LlcoolJ]

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.

Indeed. Having looked at everything I've told the majority to go for UC for now.

 

[LlcoolJ]

A client of mine told me - She is an actor who is friends with the MP

Is she one of your clients who you are happy to throw under the bus despite her paying you?

With respect, I don't believe anything you say any more.

 

[LlcoolJ]

No they went for 25%......... fcckin crooks.

Rip off b******s.

 

[NooBHA]

Is she one of your clients who you are happy to throw under the bus despite her paying you?

With respect, I don't believe anything you say any more.

That's your perogative.

 

[LlcoolJ]

That's your perogative.

Still not answering awkward questions I see.

It's prerogative btw.

 

[NooBHA]

Still not answering awkward questions I see.

It's prerogative btw.

There isn't any mileage in going over the same stuff again.

I'm not getting into any more arguments or discussions on the subject.

 

[Weststander]

There isn't any mileage in going over the same stuff again.

I'm not getting into any more arguments or discussions on the subject.

It’s a tax free 45p a mile for the first 10,000 business miles, but excluding commuting miles.

 

[NooBHA]

It’s a tax free 45p a mile for the first 10,000 business miles, but excluding commuting miles.

LOL

 

[Shropshire Seagull]

It’s a tax free 45p a mile for the first 10,000 business miles, but excluding commuting miles.

As I'm VAT registered can I add VAT on top of that and send HMRC the invoice??

Sorry, just teasing now - been a long day ....

 

[Shropshire Seagull]

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.

In the example of a one-man-band director [and a salaried company secretary spouse], if said director deems it unsafe/unwise to continue working on the client site and cannot do client work from home [self-furloughed] or client says you're furloughed Mr Contractor so we'll tell you when you can resume your contract, there is still limited company work to be done from an admin perspective. Surely it's the inability to carry out chargeable client work that's furloughed, not the limited company itself?

i.e. furlough is not the same as placing an active limited company into formal "dormant" status - please can one of the qualified accountants confirm ...

 

[LlcoolJ]

There isn't any mileage in going over the same stuff again.

I'm not getting into any more arguments or discussions on the subject.

Clearly. Because you lost the argument and made a bit of a d*ck of yourself.

As I said, I've always thought you were one of the good guys on here so no drama. It's just a good human quality to admit when you've made a mistake.

Especially if you're then going to continue to comment on the exact same subject.......

 

[LlcoolJ]

It’s a tax free 45p a mile for the first 10,000 business miles, but excluding commuting miles.

25p after that as well.

Quality post. LOL.

 

[LlcoolJ]

In the example of a one-man-band director [and a salaried company secretary spouse], if said director deems it unsafe/unwise to continue working on the client site and cannot do client work from home [self-furloughed] or client says you're furloughed Mr Contractor so we'll tell you when you can resume your contract, there is still limited company work to be done from an admin perspective. Surely it's the inability to carry out chargeable client work that's furloughed, not the limited company itself?

i.e. furlough is not the same as placing an active limited company into formal "dormant" status - please can one of the qualified accountants confirm ...

I'm reading it pretty much exactly like that so far.

 

[Weststander]

In the example of a one-man-band director [and a salaried company secretary spouse], if said director deems it unsafe/unwise to continue working on the client site and cannot do client work from home [self-furloughed] or client says you're furloughed Mr Contractor so we'll tell you when you can resume your contract, there is still limited company work to be done from an admin perspective. Surely it's the inability to carry out chargeable client work that's furloughed, not the limited company itself?

i.e. furlough is not the same as placing an active limited company into formal "dormant" status - please can one of the qualified accountants confirm ...

I’ve always found this firm’s website a mine of free and accurate information:

https://www.rossmartin.co.uk/covid-19/4643-covid-19-company-directors-shareholders

Added to that, the very first question for one or two or three man band limited companies must shirley be asking is, is there any trade at all? If the answer is yes, it’s continuing, but on levels far reduced levels just now, I would think there’s no way owner directors could then claim they’re furloughed. If sales/services provided are genuinely zero month after month, then go on to consider the issues raised by rossmartin.

My instinct is that the government do not intend this 80% PAYE grant to subsidise the salaries of directors. Instead, at it’s heart, it exists as an alternative to making staff redundant.

 

[LlcoolJ]

I’ve always found this firm’s website a mine of free and accurate information:

https://www.rossmartin.co.uk/covid-19/4643-covid-19-company-directors-shareholders

Added to that, the very first question for one or two or three man band limited companies must shirley be asking is, is there any trade at all? If the answer is yes, it’s continuing, but on levels far reduced levels just now, I would think there’s no way owner directors could then claim they’re furloughed. If sales/services provided are genuinely zero month after month, then go on to consider the issues raised by rossmartin.

My instinct is that the government do not intend this 80% PAYE grant to subsidise the salaries of directors. Instead, at it’s heart, it exists as an alternative to making staff redundant.

We're on the same page. Which is why I've generally been advising such clients to go down the UC route.

Every case is different obviously but that's basically where we are at the moment.

Gollum has screwed a LOT of people. Plus he knows exactly what he's doing being ex Goldman Sachs. The nasty little shit.

 

[Weststander]

We're on the same page. Which is why I've generally been advising such clients to go down the UC route.

Every case is different obviously but that's basically where we are at the moment.

Gollum has screwed a LOT of people. Plus he knows exactly what he's doing being ex Goldman Sachs. The nasty little shit.

It is strange. Not looking after limited company business owners, most of whom make modest profits and have no savings like most other folk.

Contrary to the beliefs of the very ill informed and some itk on NSC taxes threads, the conservative/coalition governments of the last 10 years have in many specific ways reduced the tax advantages of operating through a limited company. If you took say the total personal and company tax calcs for someone with a pre-tax and pre-minimum salary scenario of say £45k, £75k and £120k between 2007/08 to now, total taxes have increased in real terms. There’ve also been some other moves eg freezing indexation which helps my clients when selling some business assets. Similar to the stealth taxes of Brown such as scrapping ACT.

 

[LlcoolJ]

It is strange. Not looking after limited company business owners, most of whom make modest profits and have no savings like most other folk.

Contrary to the beliefs of the very ill informed and some itk on NSC taxes threads, the conservative/coalition governments of the last 10 years have in many specific ways reduced the tax advantages of operating through a limited company. If you took say the total personal and company tax calcs for someone with a pre-tax and pre-minimum salary scenario of say £45k, £75k and £120k between 2007/08 to now, total taxes have increased in real terms. There’ve also been some other moves eg freezing indexation which helps my clients when selling some business assets. Similar to the stealth taxes of Brown such as scrapping ACT.

For sure. It's been a constant, slow attack. The IR35 "reforms' being just the latest. And now no support when people need a bit of help.

The veiled threat from Gollum to all "self employed" people was the icing on the cake.

That's why it really pisses me off when people have a pop at one man band Ltd companies.

They have no idea what they are talking about.