COVID19 -Director earning min wage + divis
Discussion
I think that is the gist. We fall into this as well part of me says we have had the advantage of very low taxation for a numbers of years and so it’s reasonable but one could then argue the self employed do ‘cash’ jobs. Luckily we are savers and we’re in cash rather than the market because we were going to buy another shop.
chrispmartha said:
I don't think we can grumble too much if I'm honest as it's clearly been a tax efficient way to pay yourself as a director so can't moan when it works against us.
Plus can you honestly say as a Director you won't be working for the next 2 months?
Well if there is no client work to do then I’ll cease all admin and Furlough myself and other directors and watch Netflix for a bitPlus can you honestly say as a Director you won't be working for the next 2 months?
I’m in the same boat.
So from my understanding, we continue to pay ourselves minimum wage out of our company business account.
We register for furlough when the system is up and running. (It’s not yet?)
Then a few months time We get the 80% back ?
Can we also get universal credit as well in the mean time ? Or is it one or the other ?
So confusing.
So from my understanding, we continue to pay ourselves minimum wage out of our company business account.
We register for furlough when the system is up and running. (It’s not yet?)
Then a few months time We get the 80% back ?
Can we also get universal credit as well in the mean time ? Or is it one or the other ?
So confusing.
jonamv8 said:
Watching the chancellor:
PAYE get up to £2500
Self Emp up to £2500
Directors paid min wage + dividends getting 80% of min wage then if furloughed ?
Do I have this correct?
I think our min wage is £719 a month, so 80% of that LOOOOOOL
It's one of the consequences of the risk/reward balance of owning a Ltd.PAYE get up to £2500
Self Emp up to £2500
Directors paid min wage + dividends getting 80% of min wage then if furloughed ?
Do I have this correct?
I think our min wage is £719 a month, so 80% of that LOOOOOOL
Of course, HMG have been steadfastly removing all the benefits so that we are really now only left with the risk.
Hitch said:
I’d bite someone’s arm off for 80% of the minimum wage for doing nowt. I left a job in Jan and started a business in February so I fall down a massive crack and get 0% of £0!
My daughter is in the same boat so Universal Credit will be the way to go as long as you don’t have £16k of savings or a partner that works I believe!WonkeyDonkey said:
If you're not stopping then why do you need anything?
Fair question, our business model allows me to carry on which I'm very grateful for, however our orders have tanked (overheads haven't!) I'm not sure I'm eligible for anything, can't figure out if we are due the SBBR grant or not.£1000 a month doesn't pay my bills let alone 80% of that so I can't shut my company down. It's all or nothing I guess. Just have to keep working on ads, SEO etc and hope things pick up.
R.Sole said:
My daughter is in the same boat so Universal Credit will be the way to go as long as you don’t have £16k of savings or a partner that works I believe!
I have more than £16k in savings. I'll be ok. I think it will just harden my approach to tax planning. Last year as a PAYE I paid over £50k in tax and I take very little back. Now that I need support I get nothing. That really sucks so from now on it will all be about me as they're the lines the Government are putting down. Gassing Station | Business | Top of Page | What's New | My Stuff