Any advice would be welcome.

maxmycardagain

BTW, s/employed class 2+4 NI conts do not entitle you to benefits...

Class 1B

Class 1B were introduced on 6 April 1999 and are payable whenever an employer enters into a PAYE Settlement Agreement (a PSA) for tax. Class 1B NICs are payable only by employers and payment does not provide any benefit entitlement for individuals.



Class 2

Class 2 contributions are fixed weekly amounts paid by the self-employed. They are due regardless of trading profits or losses, but people on small (low) earnings can apply for exception from paying and those on high earnings with liability to either Class 1 or 4 can apply for deferment from paying. While the amount is calculated to a weekly figure, they are typically paid monthly or quarterly. For the most part, unlike Class 1, they do not form part of a qualifying contribution record for contributions-based Jobseekers Allowance.

Class 3

Class 3 contributions are voluntary NICs paid by people that wish to fill a gap in their contributions record which has arisen either by not working or by their earnings being too low. The main reason for paying Class 3 NICs is to ensure that a person's contribution record is preserved to provide entitlement to the state pension. Generally a woman currently needs 10 years of contributions and a man 11 years for a minimum state pension. In certain cases (e.g. parents and carers) fewer years may be required.

Class 4

Class 4 contributions are paid by self-employed people as a portion of their profits, calculated with income tax at the end of the year, based on figures supplied on the SA100 tax return. Below the earnings threshold no class 4 NICs are due. Above the earnings threshold and below the upper earnings limit class 4 NICs are paid at a rate of 8% of trading profits. Above the upper earnings limit class 4 NICs are paid at a rate of 1% of trading profits. They do not form part of a qualifying contribution record for any benefits, including the state retirement pension.

headoutofsand

deedee wrote: »

I would sell the car, get a cheaper one of around £1000, put £495 by for bankrupycy fees and use the rest for living expenses ie: rent, food because you have no income at the moment.

Hi Deedee. The car belongs to the business not me. Selling it may cause problems later down the line. If I sold it then I'm selling an asset of the business, a business that is still active.

I have not ceased trading officially, so I am still self employed, with no income at present. To me it all sounds so complicated.

How on earth could I sell it and where on earth would I cash the cheque?
My Mother would cash it through her bank, or the OH's bank ( who by the way has nothing to declare in this messy episode) but doing all this seems rather dodgy.

Thanks Headout

broadpaws

hi there,

even if you do not qualify for JSA, you will probably qualify for some assistance for housing and council tax benefit, it is based on household income -if you are hoping to cliam, these,get a claimformin NOW, some councils will allow the claim to be "fast tracked" if you can provide all the info they need in one transaction, otherwise it may take 2-4 weeks, possibly longer! Call and get them to send you orform, or better still pop in and pick one up.

good luck

bp

deedee_3

Sorry of course it is . Are you going to liquidate the business?

You can open`a Co-op cashminder or Barclays cash account to use now, see the bank account sticky.

maxmycardagain

HOOS, are you a sole trader? if so the car is yours personally, you cant "liquidate" a sole trader business, only a ltd company

p.s. you can cash a cheque at any of these places

http://www.moneyshop.tv/

you can borrow against the car at "log book loans", if you wanted to.

going bankrupt also wipes any claim by HMRC for tax or vat.

headoutofsand

deedee wrote: »

Sorry of course it is . Are you going to liquidate the business?

You can open`a Co-op cashminder or Barclays cash account to use now, see the bank account sticky.

If I may clarify. The business is not limited, just sole. Would that make a difference to the car issue?

headoutofsand

maxmycardagain wrote: »

HOOS, are you a sole trader? if so the car is yours personally, you cant "liquidate" a sole trader business, only a ltd company

p.s. you can cash a cheque at any of these places

http://www.moneyshop.tv/

you can borrow against the car at "log book loans", if you wanted to.

going bankrupt also wipes any claim by HMRC for tax or vat.

Sorry Max. Just read the above.

What I think I'm trying to say is. Would selling the car put me in direct conflict with the OR when he/she asked where is the car and where is the cash, and in particular, why has it been sold below (true) market value.

Although the dealer is a pal of mine, he is still a car dealer and is struggling with his own company, so I'm not going to get what he will sell it for.

The tax £35 a year needs paying by the end of the month. It may be the case that the OR let's me keep it. It is so cheap to run 60 to the gallon. I have little maintenence costs as the dealer has adverts on it, which gives me free servicing.

The_Undercover_ADI

I'll leave the financial advice to those better qualified, but from the instructor side of things you mention going with the AA - you're right about the possibility of this being out of the frying pan into the fire, with the current economic climate and the need to pay franchise fees.

However, if you could bear it (with the idea of getting back up and running) you could go on the B$M Variable Franchise (http://www.bsm.co.uk/instructor-centre/bsm-franchising/bsm-variable-fee-franchise.htm - definitely nothing to do with this lot) to get back into things and gain a few customers.

Unless it has changed recently it gives you a car and you pay nothing. The catch is that you get paid a pittance for the first 10 or so hours, a bit more for the next few and a reasonable amount once you get up to around 25 hours. You'll never make a fortune out of it, but at least you'll have customers again.

It could tide you over until you hear from the council about the driver training officer job and BSM also do fleet and ADI training which you may be able to work on while getting back on your feet.

Good luck.

OhDear

I'm an ADI and I'm in a similar situation to you. I had to move areas in May for personal reasons, and went to a zero customer base over night. Unable to start work in the new area until August I had more longstanding debt than you and a car on HP. I had to go BR in November. I have got a minimal amount of work and with the car on HP, I'm only just arround the break even point, and that is without any advertising. Currently, I am carrying on as an ADI, but I'm also looking for part or full time work. The main difference is that we can live (just, and for a limited period) on my OH's wages.

I agree with UADI as regards the AA. I had a friend move to an AA franchise, and he had to leave once all the introductory offers were over!

I'm not sure about BSM either though, I guess it may depend on their variable franchise figures. However, you have experience and although it is really tough out there. Can a franchise give you anything, you can't do yourself? That's the question, I keep coming back to. If I was to spend half the money a weekly franchise would cost on marketing and first lesson free offers etc. how much work could I generate myself?

I have had things on hold a bit due to the BR and all the time that it has consumed. If I owned my car outright, I would not have any question about continuing. I'd still look for another job aswell!! I've never been a cheap ADI, and I didn't want to start being one here, but if one looks at introductory offers etc. It could get things going. For minimal cost you could do a load of first lesson free offers, and contact your previous clients asking them to recommend you along with any offers you decide on.

I'm just waiting for the dust to settle (and the free papers with my BR announcement, to get recycled), and confirmation from the OR that they have no interest in the car then I'm going to be marketing very actively. Hanging around outside the Sixth form colleges etc., making sure my car is seen out and about, and trying to get my cards out to as many people as possible. I might speak to BSM about their variable franchise, but having worked for them in the past, I wouldn't be staying with them for long. It would only be to get myself known in this area, no longer!! Then I would still want my own car!

I do totally understand what you were saying about learners, having done ADI training and fleet training in my old area. It's a real disappointment to hear the commercial training is in decline, as this is an area I would have wanted to get into. Although BR may make this a little more diffficult?

I don't know if that helps in your decision on BR or not. It's not easy, and I still don't know for certain how the DSA will view BR, when I need to extend my registration. Do you know??

The most frustrating thing is turning down work in West Sussex!:mad: I know you mention Brighton as the court you would have to attend. If you want to continue, you could PM me with the Test Centres you cover. I might be able to pass some work your way? Not much, but some.

HTH OD:D

All the best for interview on Thursday. I'm jealous! Let us know how it goes.

maxmycardagain

headoutofsand wrote: »

If I may clarify. The business is not limited, just sole. Would that make a difference to the car issue?

if you were a ltd company, closure or liquidation more like, means the car is an asset of the company, not your own personal possesion (unless you had it and tax-wrote it down over 4 years and sold it on,,,to yourself)

as a sole trader the goods are yours, more importantly, as a "tool of the trade" the OR cant take it IF you intend to trade on (which would be easiest at the moment, if the car and insurance is paid for)

you could keep the car+business running (even in name only) keep the WFTC, claim housing benefit till your sorted, and sell the nova to raise the cash for BR fees

meanwhile, look round for a job, not a franchise, a paye job, youve got transport, i know a guy who delivers chinese meals thurs/fri/sat/sun and gets £250 cash in his hand....