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Refused a loan - why?
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Ah, the familiar lament of the self-employed tax dodger. No that's not my REAL salary that's just what I tell the tax man!
Ah, the familiar lament of the employee who gets paid to go on holiday, paid to be sick, paid to go on training courses, given a free pension, has their work done for them whilst they are on holiday / sick, etc, etc...
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WellKnownSid wrote: »Ah, the familiar lament of the employee who gets paid to go on holiday, paid to be sick, paid to go on training courses, given a free pension, has their work done for them whilst they are on holiday / sick, etc, etc...
No lamenting here; I'm perfectly happy with my salary and benefits.
For what it's worth I also have a lot of respect for people who have the balls to start a business and work for themselves and I have no issue with using legal ways to minimise tax liability such as paying yourself a low salary and taking money out as dividends. But if you choose to do that it shouldn't come as a surprise that there can be consequences to having a low salary such as, for example, banks not lending money to you at favourable rates.0 -
Your declared income before tax is less than what a single person on the dole gets (after tax). Why would anyone lend to you at a decent rate when you have such a lousy income?0
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How did I miss this gem the first time around?!My bank said they could not take into account dividends, so they had to assume my yearly income was £10,600 (income before tax) - DESPITE being MY OWN bank and clearly seeing that more than that amount had gone through the account in the last 3 months.. :mad: - needless to say it was rejected.
Look, if you're going to try to avoid paying tax (without wanting to get into a debate about the legal v moral side of it) by taking most of your income as dividends, and only declaring an absolute pittance of a salary, you can hardly be surprised that a bank might not want to lend to you based on your 'low salary'."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
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Do you mean Advance Corporation Tax? Binned during Tony Blair's first stint.WellKnownSid wrote: »Dividends are only payable on profits, on which ACT is payable..."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
Your declared income before tax is less than what a single person on the dole gets (after tax). Why would anyone lend to you at a decent rate when you have such a lousy income?
Dividends are declared income, it is just that they are not guaranteed. And lenders generally treat them an investment income not earned income.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0
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