Chit Chat
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27 Mar 20
14:21
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Date Joined:
09 Jul 09
Just wondering if I might qualify, seeing as my income is now zilch, as a result of Covid-19
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If you are eligible, you will be contacted by HRMC
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https://www.gov.uk/government/organisations/hm-revenue-customs
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According to 'Deplasterer' (an accountant) it is the last 3 years accounts ie [total earnings - total expenses]/36 months (x 3) x 80%
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Up to a maximum of £2,500 per month or £30,000 a year annual profits.
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Not a chance for me, as I don't pay tax...
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many self employed set up a company , pay themselves minimum wage and take all the profit as a dividend.
pay them 80% of minimum wage. |
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6 2 6
they get nothing under this system, universal credit for them, or of course they,ll all have their tax payments banked under the bed  and they've got a delay on them payments,so can use that for bills,shopping etc |
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Do we have to pay it back plus their cheery on the top please? And if so what happens when my business has failed and I cant pay it back.Thanks in advance.
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Corporation tax still has to be paid, no new measures to stall payments yet on this tax, but I assume this will be looked at in the not to distant future as a lot of companies will not be paying due to insufficient funds.
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No, it is a grant not a loan Terry.
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Thanks Deplasterer, that's good of course but how on earth can they afford to do it?
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Simple, they pluck the fruit from the magic money tree i.e. print money
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Angoose is right in a way, the technical term is quantitive easing (a licence to print money), hopefully not as bad as 2008 crisis as hopefully a lot of those currently out of work will return to their old work in 3/4 mths after this crisis eases, of course there will be unfortunate casualties with no work to go back to, well that's the thinking, whether it pans out is the big quandary.
Anyway, the main thing is to safe with family and worry about that at a later date. |
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Won quite a few back in the day did Quantitativeeasing over the cross country fences.
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Nina
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Director can't Cider but his employees can, if the director is furloughed the company is deemed insoluble, red tape unfortunately at present but pressure is being put on the treasury to waive this for exceptional circumstances.
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QE running in Ireland with irish commentator trying to pronounce it was one of lifes joys,
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A director on PAYE minimum wage Deplasterer?
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I had a theory of allowing people early access to DC pots. Of course they are depressed right now but just enough to live off.
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& sipps
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The upside is that it would take days to realise the funds.
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QE 1
QE 2 QE 3 QE 4 ZERO INT RATE QE 5 Anything to aviod deflation or if you prefer, reality. |
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Deplasterer,when I said "money is loaned into existence" dave boy blew a gasket
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Most unpleasant man
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Yeah Cider, nearly all company directors take a minimum wage salary, simply to cover their stamp for pension and also they don't crack the 20% tax band, thus for good tax purposes a good profitable company will pay their directors a quarterly or annual dividend at 10% tax.
As I said, it's not the fact of the small minimum wage paye payment, it is the fact under current law that if they furloughed the company will be deemed insoluble, but again this is being looked at. |
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I don't work in practice but I'm familiar with the 'workarounds'!
In all the literature I've seen, all PAYE employees are eligible. What's the legislation that determines that if a director under PAYE being furloughed means the company is deemed insoluble. |
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Cider,the thinking behind it is, if the directors of the company are furloughed as well as the employees, who will carry out the day to day running of the company, ie. No one, thus company will be deemed insoluble.
A lot of people set up companies to avoid the 40% tax band, those are the ones who are being hit hardest now. Swings and roundabouts, unfortunate but those types of directors in theory would have avoided the 40% tax band and thus if prudent should have put away a nest egg for rainy days, in theory anyway. |
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Plenty of sal sac of course! That's why it would be handy to have emergency access to pension pots.
Can they not perform director duties effectively away from the payroll then? In real life they will be. I suppose that's the sticking point if a furloughed worker cannot touch the business. |
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Yep, that's why Cider. There are a lot of electricians, plumbers etc.. Who may only make say 30k a year, and a lot trade as companies more for prestige than tax purposes. It is these guys who are being shafted by this rule now, I know personally at least 6, only option is UC for them about 545 a month for a married couple, shocking drop for them, but then again it is a great leveller for people as a lot of families have to survive year on year like this. A lot of things will come out at the end of this desparate situation the whole nation is, namely I think the NHS and the welfare state.
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I hope post this we all can appreciate a bit more freedom, availability of food and fresh air. Monetary advantage is no guarantee of safety or health.
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I personally pay 40% of my intended pension contributions into a S&S ISA wrapper, into the same funds as my SIPP for this very reason. I'll still get the tax back when I switch it to the sipp, but I can access the ISA in an emergency. This is outside of the emergency fund, income protection and unemployment insurance.
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Very prudent Cider. If you don't mind me asking are you an employee/sole trader able to benefit from new rules or have you been shafted. I've been fortunate able to work from home.
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I'm an employee, wfh on full salary (for now!). Our gravy is SMBs so there will be some collateral damage to the business.
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this may come as a shock to dickie branson and Jamie oliver but me and the wife are using our own savings, how revolutionary is that
, cant see it catching on, |