James Baggott

Sales commission CAN be included in furloughed staff's payments

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In other news, I've removed the post about the IMDA earlier. I am happy for open debate on this forum - but bad language like that will not be tolerated.

Especially in the current situation, let's try and keep things nice and support each other. Now isn't the time for vitriol and hate. 

 

 

 

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I’m sure those people will be slapping themselves on the back, it must be s huge relief. But the chancellor has already hinted that ‘changes will be made’ when the corona dust has settled. Let’s hope the short term benefits outweigh the potential long term pain?

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1 hour ago, metcars said:

I’m sure those people will be slapping themselves on the back, it must be s huge relief. But the chancellor has already hinted that ‘changes will be made’ when the corona dust has settled. Let’s hope the short term benefits outweigh the potential long term pain?

Long term we will all pay through the nose, well except those with Yachts and accounts overseas etc

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Lovely. Dividends next please.

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11 hours ago, sparky said:

Lovely. Dividends next please.

+1

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6 minutes ago, Screenman said:

Why do people take dividends and just not pay themselves the proper wage each week?

There is no employers contributions of NI. And it’s a little more tax efficient. 

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Posted (edited)
20 minutes ago, Screenman said:

Why do people take dividends and just not pay themselves the proper wage each week?

I pay myself minimum wage PAYE and take dividends thereafter. Instead of paying 40% tax, I only pay around 18%.

I have benefited from that, it is what almost all sole director Ltd companies do and if that means I get nothing, then so be it - I shall not be complaining. You can't have your cake and eat it.

I do have a feeling this loophole will be closed after the crisis.

Edited by Mark101

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Mark101, you just hit the nail on the head, I knew the answer obviously I was just wondering what type of responce I would get.  Maybe they could help out those that have paid themselves that way but at a reduced rate, I feel the loop hole should have been shut years ago, I have been limited in the past and benefitted from it but for the last 35 years have been a sole trader, luckily for me at this time declaring all.

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Too many Ltd's using it as a screen to not pay taxes and as a way to deny decent honest people who trust them supply them goods only to find they liquidated friday morning and bought the assets back first thing Saturday morning but no debt

Disgraceful

Its like buying stolen goods in no one did it there would be no thieves

So if asd123 restarts as asd1234 if nobody gave then credit they might change their ways

Bring on a govt clamp down ive never felt the need to go ltd

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47 minutes ago, New year revolutions...... said:

Too many Ltd's using it as a screen to not pay taxes and as a way to deny decent honest people who trust them supply them goods only to find they liquidated friday morning and bought the assets back first thing Saturday morning but no debt

Disgraceful

Its like buying stolen goods in no one did it there would be no thieves

So if asd123 restarts as asd1234 if nobody gave then credit they might change their ways

Bring on a govt clamp down ive never felt the need to go ltd

In the past we have all come across these people who set up LTD companies then ‘overtrade ‘ with the sole object that they will fail.My accountant told me that with new regulations this is now far more difficult to repeat.If you are just doing up to 10 per month on your own I can understand not having LTD liability.However there are many potential banana skins to slip up on in this job which you will never think of and being Ltd does help to reduce your liability.So I would encourage people starting out to incorporate when they get established or face at some time the possibility of being wiped out through no fault of their own.

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Posted (edited)
19 hours ago, trade vet said:

However there are many potential banana skins to slip up on in this job which you will never think of and being Ltd does help to reduce your liability.So I would encourage people starting out to incorporate when they get established or face at some time the possibility of being wiped out through no fault of their own.

The exact reason I am a Ltd company. I do the very best for my customers, do not cut and corners and have all the right insurance policies in place. 

The most secure insurance for me is to limit my personal liability. If, for whatever reason I am sued (as a business) or presecuted because someone working for me has done something they shouldn't and my insurance policy finds some "get out" clause (as they have for my business interuption due to COVID-19), my house and personal assets are safe.

The tax benefit was only a consequential.

For the record, over the last 10 years, I have paid more than £300k in income tax as an employee. I resigned and couldn't find another similar job for almost a year (when I restarted back in the trade). Not once did I seek any benefits at all, sign up for NI contributions, free prescriptions or anything - I lived off savings.

It is swings and roundabouts.

Edited by Mark101
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21 hours ago, New year revolutions...... said:

Too many Ltd's using it as a screen to not pay taxes and as a way to deny decent honest people who trust them supply them goods only to find they liquidated friday morning and bought the assets back first thing Saturday morning but no debt

Disgraceful

Its like buying stolen goods in no one did it there would be no thieves

So if asd123 restarts as asd1234 if nobody gave then credit they might change their ways

Bring on a govt clamp down ive never felt the need to go ltd

this is true how many times I've seen this happen over the years in many industries 

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