Help for single director companies

justwhat

Peeps are smart enough to  minimise tax or maybe their accountants are ...then gob off when they don't get the hand outs because of it.  

afis1904

nickykittykat said:

Potbellypig said:

nickykittykat said:

Jeremy535897 said:

If your salary was deliberately low, it means one of two things:

• you didn't need the money so left it in the company to save tax
• you took the money as dividends to save tax

- Genuine question - do you think I should be penalised for that now?  In other words  I had  a 'benefit' up front so now this crisis has hit it's tough luck?  

You can't deliberately give yourself a wage whereby you don't pay tax, whilst using the dividend system to pay less tax, and now expect the system to help you out. You can't have your cake and eat it.

Oh and I'm in exactly the same position.

Do you believe that is fair, even in an unprecedented crisis?  

I think it's perfectly fair as you used the system to pay less taxes previously so you should be expecting less back out of the system in situations like this

Jeremy535897

I know the Chancellor said sole director companies could furlough their directors but the guidance issued doesn't address the old issue of doing no work as far as I can see.

mattyprice4004

In the same boat, but taking it with a million times more grace than others it seems. 

We paid less, we get less back. Time to use that contingency fund  

nickykittykat

mattyprice4004 said:

In the same boat, but taking it with a million times more grace than others it seems. 

We paid less, we get less back. Time to use that contingency fund  

Let's hope you have enough in your contingency fund to cover this if it goes on for a year or more.   Perhaps you won't be as smug then.  Pride before a fall.

Pipers2468

I have put in a 2018 /2019 tax return and have been self employed for the 3years... i have de registered for self employed and only just become a sole director only taking 8,000 no div
can I claim the 80% self employed .i have a self employed tax bill to pay in July of 1500 

neilmcl

nickykittykat said:

mattyprice4004 said:

In the same boat, but taking it with a million times more grace than others it seems. 

We paid less, we get less back. Time to use that contingency fund  

Let's hope you have enough in your contingency fund to cover this if it goes on for a year or more.   Perhaps you won't be as smug then.  Pride before a fall.

If you think the government will be paying peoples wages for a year or more you've got another thing coming. 3 months max would be my guess.

Jeremy535897

No. Here are the requirements. You don't meet any of the conditions except the first two.

Who can apply

You can apply if you’re a self-employed individual or a member of a partnership and you:

• have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
• traded in the tax year 2019-20
• are trading when you apply, or would be except for COVID-19
• intend to continue to trade in the tax year 2020-21
• have lost trading/partnership trading profits due to COVID-19

LilElvis

nickykittykat said:

mattyprice4004 said:

In the same boat, but taking it with a million times more grace than others it seems. 

We paid less, we get less back. Time to use that contingency fund  

Let's hope you have enough in your contingency fund to cover this if it goes on for a year or more.   Perhaps you won't be as smug then.  Pride before a fall.

That really is most unkind. The mantra on this site is that everyone, regardless of employment status, should aim to have an emergency fund - and ideally one which would pay the bills for at least six months.

nickykittykat

LilElvis said:

nickykittykat said:

mattyprice4004 said:

In the same boat, but taking it with a million times more grace than others it seems. 

We paid less, we get less back. Time to use that contingency fund  

Let's hope you have enough in your contingency fund to cover this if it goes on for a year or more.   Perhaps you won't be as smug then.  Pride before a fall.

That really is most unkind. The mantra on this site is that everyone, regardless of employment status, should aim to have an emergency fund - and ideally one which would pay the bills for at least six months.

In all honesty, if you read the full thread, you will see that my response was made to an 'unkind' comment.  I have 'aimed' to have an emergency fund - and have done so for the last 15 years in business - that said, over the last few years, I have broken my leg, got divorced, moved house and now have a terminally ill ex-husband who is unable to assist with maintenance for my children - so keeping a contingency pot is out of the question.  Back to my original comment - smugness isn't pretty and PRIDE BEFORE A FALL