Small limited company Running from home

neilmondo

I have a small Limited company in the events industry which I run from home so am not registered for business rates. I have lost all work for 2020 and find it unfair that my business isn’t eligible for the £10,000 grant simply because I don’t pay rates. I stand to make a large loss this year and face an uncertain future. I am furloughed but that doesn’t reflect Director dividends so the help available seems minimal.

Am I just in an unlucky position? There must be lots of others in the same situation and our businesses deserve to be supported too. Even a different grant would help?

Are there any online petitions for those running small Limited companies from home to have their say, or other ways that we can get some support?

7Phil

I only have a limited knowledge of what your conditions and entitlements are.
I agree it is unfair that you have no protections against your losses caused by this global pandemic and are not benefiting from6 the shift towards a massive economic bailout we are seeing.
I also agree that limits and boundaries need to be established somewhere. The UK has not decided on a basic minimum wage for all.

As a person that is connected with the events industry and running your small business from home, then you will be surely aware that you are subject to a heightened level of risk and volatility in your market.
I expect if you are not eligible for the grants available then you will fall back on standard welfare benefits like UC.
Hopefully there are ways that you might be able to adapt your time and skills to an area that is currently in need and then maybe find ways to bridge the gap in your income?
Good luck

Hermann

Here's the guidance on support for business, have a read through and see if anything applies to you.

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

neilmondo

Thanks Hermann. I have already checked this info several times (and discussed with accountant). Seems like I will only be able to claim the 80% of a very small wage (not reflecting previous dividends) and no grant because the business is not registered for business rates. Tough times.
It’s not just the wages - the company has invested heavily into the 2020 season and will now return a large loss instead of a profit.

Socajam

neilmondo said:

Thanks Hermann. I have already checked this info several times (and discussed with accountant). Seems like I will only be able to claim the 80% of a very small wage (not reflecting previous dividends) and no grant because the business is not registered for business rates. Tough times.
It’s not just the wages - the company has invested heavily into the 2020 season and will now return a large loss instead of a profit.

Your problem right there is that you are not registered for "Business Rates" - something you do not pay or do?
You may have invested in the 2020 season, which is totally a different matter when it comes to "Business Rates"

neilmondo

The guidance on the website when I set up the business clearly stated that I did not need to register the business for rates when working from home (if falling into their criteria), so I have followed guidelines. 

Jeremy535897

Yes that is normal if working from home.

PAPSERVICES

I have a limited company with turnover of more than £300,000 per year and have been operational since 2002! I have always worked from home and paid NO business rates to the council. I can NOT work due to flight restrictions and I CAN NOT apply for the government grants. I have talked to my MP as well as the council and read ALL the web site from HMRC. No one can really help and even the MP is totally useless! There must be others like me but with NO voice and NO support. How can we get the grant that others are getting? I pay an annual company tax of more than £50,000 per year but now I need help and there is none!  Can any one help or make any useful comments? Thank you 

neilmcl

PAPSERVICES said:

I have a limited company with turnover of more than £300,000 per year and have been operational since 2002! I have always worked from home and paid NO business rates to the council. I can NOT work due to flight restrictions and I CAN NOT apply for the government grants. I have talked to my MP as well as the council and read ALL the web site from HMRC. No one can really help and even the MP is totally useless! There must be others like me but with NO voice and NO support. How can we get the grant that others are getting? I pay an annual company tax of more than £50,000 per year but now I need help and there is none!  Can any one help or make any useful comments? Thank you

Surely in all these years with a decent turnover you've built up enough of a war chest (or you should've) to survive a few months before your next pay cheque comes in. I assume you've paid yourself a minimum salary and everything else via dividends?

stratty

Your loss can be offset against corporation tax to generate a refund.  I know it doesn't help now but bear it in mind for the future when your next year end is up.

dunstonh

I have lost all work for 2020 and find it unfair that my business isn’t eligible for the £10,000 grant simply because I don’t pay rates.

That is just ridiculous of you.   Business rates grant is for businesses paying business rates.     You are paying zero but expect them to give you £10,000?  

For many working from home it is possible to apply to have your office, if it is standalone, to be treated as a business premises and taxed accordingly (although it would probably be under the threshold and you would be on zero rates anyway).   There can be tax advantages and disadvantages to that).   

I stand to make a large loss this year and face an uncertain future. I am furloughed but that doesn’t reflect Director dividends so the help available seems minimal.

You had a choice of salary and dividend split.  You decided to go for lower salary and higher dividends.  Almost certainly because you avoid paying National Insurance that way.    So, its a bit rich to moan about the state not providing you as much money because of your decision to pay less to the state in good years.

Are there any online petitions for those running small Limited companies from home to have their say, or other ways that we can get some support?

There are always greedy people who petition for things.

I know my comments sound harsh to some but do remember that the Government is using taxpayers money to bail people out.   They get the money (eventually) through tax revenue.    The people that are crying the loudest are often the ones that have found various ways to reduce the amount of tax and NI that have been paid.   So, when those people whine about it being unfair, it has to be viewed in context that it was their choice.

Anyway, in this situation, the Bounce Back Loan would appear to be the solution that the OP is looking for.