- Reaction score
- 2,046
You self employed sole traders shouldn't complain too much.
I'm one of 2 directors of a ltd company. At the moment we are the only employees, although we have had more in the past. We are not eligible for the self employed scheme as we are somewhere between self employed and employed (usually depending on whether it suits the taxman or not).
We both paid around £500 less tax last year than a sole trader would have, yet we can only furlough for the PAYE portion of our income.
Would have to live on £585 each a month and if furloughed we're not allowed to work. We still have to pay van costs, scam fees, insurances etc etc out of this. It's a bit of a joke as we had months of work lined up before this. Some of it has stopped because we can't work in peoples homes in most cases and some because of lack of materials holding jobs up - plaster and plasterboard mostly it seems.
Currently working 1 week in 4 to try and keep money coming in. Bloody irritating that we are not allowed to keep working and receive help like SE can. People have an impression that dividends are a massive tax dodge and fiddle, yet you can only use the system legally as it is put in front of you. Some people suggest we should pay our wages entirely PAYE. If we did this our tax liability would be thousands more than any other type of employment a year. Dividends are taxed at 7.5% for basic rate taxpayers and that's after you've already paid 19% corporation tax on the same money.
Can imagine quite a few people will be deferring their VAT bill and folding the company later on in the year with nothing left within it. Government needs to come up with a grant for businesses without premises IMO. Otherwise furloughed employees will go down with the director/owners.
In better news we have already received the (paltry) furlough money for April from HMRC.
I'm one of 2 directors of a ltd company. At the moment we are the only employees, although we have had more in the past. We are not eligible for the self employed scheme as we are somewhere between self employed and employed (usually depending on whether it suits the taxman or not).
We both paid around £500 less tax last year than a sole trader would have, yet we can only furlough for the PAYE portion of our income.
Would have to live on £585 each a month and if furloughed we're not allowed to work. We still have to pay van costs, scam fees, insurances etc etc out of this. It's a bit of a joke as we had months of work lined up before this. Some of it has stopped because we can't work in peoples homes in most cases and some because of lack of materials holding jobs up - plaster and plasterboard mostly it seems.
Currently working 1 week in 4 to try and keep money coming in. Bloody irritating that we are not allowed to keep working and receive help like SE can. People have an impression that dividends are a massive tax dodge and fiddle, yet you can only use the system legally as it is put in front of you. Some people suggest we should pay our wages entirely PAYE. If we did this our tax liability would be thousands more than any other type of employment a year. Dividends are taxed at 7.5% for basic rate taxpayers and that's after you've already paid 19% corporation tax on the same money.
Can imagine quite a few people will be deferring their VAT bill and folding the company later on in the year with nothing left within it. Government needs to come up with a grant for businesses without premises IMO. Otherwise furloughed employees will go down with the director/owners.
In better news we have already received the (paltry) furlough money for April from HMRC.