I could lose my new house what can I do please help

thelawnet

grey_lady wrote: »

Just thought i'd try and clarify something as people seem to find it odd that the op can take a dividend but not pay corp tax.

corp tax is 20% of annual profit not turnover for a small company, e.g after wages and all expenses have been paid, so if you had a couple of months where no sales had been made then corp tax wouldnt be payable from those months, but you could still take a dividend if you had enough in the bank to pay for it.
[
I put my 20% aside every month, if i have a couple of months without sales
then i can take 20% back out of what i've put aside from previous months.
But not everyone works like that, some people might just leave it until the end of the year and then work out what they owe and pay it. It may be that they dont owe anything if the expenses have been high.

A dividend can only be paid out of PROFIT. If you have not got any profits, you cannot pay a dividend. And profits are calculated ANNUALLY. So if you make £1k in January, February, March, April, May, June and lose £1k in each of July-December, you make ZERO profit, and so ZERO dividend can be paid (unless you have got retained profits from previous years, but if that's the case he should pay out ALL retained profits as a one-off dividend to pay off debt).

Corporation tax is payable on every single penny of profit.

Salaries are tax-free up to about £5k/year (£435/month), plus same again for the spouse if s/he is not working. But that has to be done PAYE, not as a dividend

There just isn't any way to legally pay out as much as £1k/month without paying any tax.

£350 a year for an accountant seems low, bit puzzled by that. maybe i pay to much :-)

Sounds cheap to me too.


FWIW, the whole thing's as dodgy as hell, and what on earth possesses people to spend thousands on car when they are already in debt!?

I'm shocked by it all, but I would never have allowed things to get in that situation. I'm not surprised the secured loan company offered more credit - interest is £403/month and payments only £431.82/month, whopping 13.672% APR, he'll be making them rich.

Seems clear to me that bankruptcy eventually beckons as he seems to have no idea how much money he's spending and how much he's earning, which are fundamental things to worry about when you are not earning that much.

kunekune

Why no payslip? Is this job 'under the table'? If so, it may not be the panacea that he thinks it is.

rayday2

The process of payroll means the pay is calculated along with a slip, coming from someone who worked in payroll, in fact the pay slip is produced before the money comes in how else would you know what to send pay out?

As for he has his pay, he was paid Monday you saw him shopping Saturday - I smell someone dodging authorities again which I am sorry if some of you don't agree but it annoys me we all use services this country produces his child accesses education he should pay!

mouseclick

rayday2 wrote: »

The process of payroll means the pay is calculated along with a slip, coming from someone who worked in payroll, in fact the pay slip is produced before the money comes in how else would you know what to send pay out?

As for he has his pay, he was paid Monday you saw him shopping Saturday - I smell someone dodging authorities again which I am sorry if some of you don't agree but it annoys me we all use services this country produces his child accesses education he should pay!

Don't worry Rayday2, he will probably soon be homeless, divorced and broke, then you will be happy

rayday2

That would not make me happy but why should he exploit the system when we all on here struggle to abide by the law - he is the one being unjust not me!

And if he does loose his house he had warnings and good advice on here he choose to ignore it!

meester

mouseclick wrote: »

Don't worry Rayday2, he will probably soon be homeless, divorced and broke

quite possibly, this level of ostrich-like behaviour will cause that eventually, and it would be entirely self-inflicted no-one else to blame.

how can you possibly live without a household budget or just say you're going off to 'chill out'. he has a family, there is no 'chilling out', he needs to work out his expenses and income, and pay off and properly tructure the debt, he is absolutely hopeless.

mouseclick

rayday2 wrote: »

As for he has his pay, he was paid Monday you saw him shopping Saturday - I smell someone dodging authorities again which I am sorry if some of you don't agree but it annoys me we all use services this country produces his child accesses education he should pay!

Could you please explain why the crime of getting a new mobile phone for free on a Saturday when he did not get paid until Monday is tantamount to "someone dodging authorities again"?

rayday2

A job without a pay slip sounds a bit dodgy, he does not pay his TV licence and his business sounds "dubious" how many more flountings do you want.

You even said over the mobile you were surpised at back handedness in the industry so don't pick on me.

Debt_Free_Chick

mouseclick wrote: »

Could you please explain why the crime of getting a new mobile phone for free on a Saturday when he did not get paid until Monday is tantamount to "someone dodging authorities again"?

But it won't have been free. He will have been required to sign up to a new contract for 12 or 18 months. More financial commitments, without having a firm handle on his budget and with no certainty of income to support his necessary spending over this period - let alone unnecessary luxuries like a new handset :eek:

He might just as well have signed up to a finance agreement - effectively, that's what it is :mad:

mouseclick

rayday2 wrote: »

A job without a pay slip sounds a bit dodgy, he does not pay his TV licence and his business sounds "dubious" how many more flountings do you want.

You even said over the mobile you were surpised at back handedness in the industry so don't pick on me.

You are assuming that he is dodging tax authorities because he was not given a payslip, yet you attached that comment to the fact that he "bought" a phone 2 days before he was paid. However the first thing he did was to phone the tax office.

I did not use the word "back-handedness" so you can take that back. I said I was amazed at how a particular mobile phone shop operated, but their operations have nothing to do with SLG.

You say his business sounds "dubious", but in fact it is 100% above board.

It is all down to the TV licence isn't it? You think SLG is a hardened criminal because he has not paid his TV licence. Therefore, everything else about him must be dodgy, and of course, you have never ever broken the law, not even travelled 31mph in a 30 zone I am sure.

If every word I say causes you to smear SLG with another "back-hander" "dodgy" or "dubiuous" comment, there is little point in me saying any more.