Turning from a sole trader into a limited company has been popular in the past, with small business owners - from marketing agents to milkmen - becoming company directors and using the professional-sounding title that comes with it.
Even that benefit can be reduced if, for example, banks still require the business owner's home as collateral for a loan. Campaigners point out that most company directors are not especially wealthy, with many running small firms or operating by themselves. He and his partner have run a hospitality recruitment company in Gloucestershire since 2006, but since the epidemic hit, all of their work has evaporated.Nick Steele is one of those affected by the shutdown in the hospitality sector
He thinks the government is uninterested in supporting limited company directors because of a perception they pay less tax. Sonali Joshi, 45, whose business provides access services to the film industry, such as subtitles and audio descriptions, says she is struggling to make ends meet.
As well as creative industries, non ‘frontline’ healthcare professionals working under ltd co are also being left behind. Dentists, dental hygienists, physiotherapists, psychiatrists, podiatrists, optomitrists etc.. forgottenLTD BBCBusiness telebusiness RishiSunak FT
If they don’t pay income tax, tough shit. They pay themselves in dividends to avoid tax and minimise their personal exposure to risk. They can get stuffed.
Please understand that the small guys really don't deserve to be treated like tax dodgers. Throwing people overboard in stormy seas is not a decent thing to do, instead we need each others support more than ever. Let's show the world what 'GREAT' in Great Britain stands for
As a self employed person , this was a choice I made no one forced me into it and I was aware of the downsides , As for one person ltd companies, simple you pay less tax by paying a dividend rather than drawing a salary , it’s all about choices YOU make .
Lots of ignorant people bleating on about tax dodging. From a £24k salary, an employee benefits by £20,576 after deductions and workplace pension credit. From £24k profits, a small business owner gains by £20,571 after taxes & statutory filing fee, not including accountant fees
But as a limited company, you saved money on tax breaks etc for such an eventuality?
Whenever the question of tax comes up, I never cease to be amazed by how people can be both so outraged AND so very, very wrong 🤣
Sorry but for many, 'popular' was not the reason. Clients would only trade with you, if you were Ltd.
Never mind. Pay full tax and get the benefits when things go tits up. Don’t screw the system ‘though it’s legal’ and then expect us normal, full tax paying public to subsidise you.
Probably did it to avoid tax, never mind, if you don't want to pay in you shouldn't expect anything out.
This is something that accountants have been advising self employed people to do for so long. Basically because it gives them more work and money in their own pockets. I did it, on accountant's advice, and it was such a mistake for so many reasons and took a year to reverse.
I ran my own ltd company. If you’re not saving money for the dry spells then you’re doing it wrong.
My mate gets £600 month... but also has 36,000K dividend to draw on... can’t have it both ways... declare nowt... it’s the way it is... Self employed are similar... declare minimum amount ... not expecting this scenario... like myself... haha!
Fuck them and all those sophisticated traders who make choices for their, usually tax avoidance, benefits.
Why do they take a very small salary and a much larger dividend? (Probably on the advice of their accountant). If they took all money out by way of a salary, they could be furloughed on 80%. The reason is that salary attracts National Insurance contributions, dividends do not.
What are 'savings'?
Should have saved all of that tax dodging dough. No sympathy.
Surprised the taxi drivers association hasn’t come out and said they’re being treated unfairly... ShouldHaveDeclared
Tough, tax avoiding tw**s