[Search & Destroy]

Starting to wind down a bit

So many instances of abuse, self employed carrying on as normal cleaning up and getting £7500 every three months

[isleaiw1]

Search and Destroy, on 01 July 2021 - 09:12 AM, said:

Starting to wind down a bit

So many instances of abuse, self employed carrying on as normal cleaning up and getting £7500 every three months

I dont think that is in your top ten wind ups....

Do you even know the rules on furlough? Were you ever furloughed?

Of course there will be people abusing it, there is in every line of work where taking from the country is seen as a victimless crime and something to be supported. But equally there are a lot who have done badly out of it, such as one man band limited companies - who have to be a limited company as their customers expect them to be to remove their tax risk - and who have got next to nothing as they were taking their income as dividends not salary before.

[Search & Destroy]

Dividends are only taken to reduce tax liability, we all know that

If folk are putting the £11500 or whatever the tax threshold is through the books paying no tax and taking the rest in dividends then they get no sympathy from me

I’m on about the self employed who are still getting the grants while working as normal

[isleaiw1]

Search and Destroy, on 01 July 2021 - 09:26 AM, said:

Dividends are only taken to reduce tax liability, we all know that

If folk are putting the £11500 or whatever the tax threshold is through the books paying no tax and taking the rest in dividends then they get no sympathy from me

I’m on about the self employed who are still getting the grants while working as normal

Its what accountants advise, half of those affected would never even have considered the consequences that could arise....

There are some self employed people doing quite well currently (or working less for the same money) but my guess is you were furloughed for a while when car dealers were closed and no need to buy stock, so you got paid money to do absolutely nothing..... its only the same!

[Search & Destroy]

Of course it’s not!

You’re either not able to work and get Furlough

Or you’re able to work and you don’t

It’s unreasonable to be working as normal and still be getting £2500 a month Furlough

[isleaiw1]

Search and Destroy, on 01 July 2021 - 12:39 PM, said:

Of course it’s not!

You’re either not able to work and get Furlough

Or you’re able to work and you don’t

It’s unreasonable to be working as normal and still be getting £2500 a month Furlough

I would agree but managing that would be virtually impossible and as a balance lots of employed people got government money for nothing (for literally doing nothing...) so why shouldnt the self employed?

The furlough pay is taxable, I am looking forward to some of them declaring that they made no income beyond their furlough cash which should set the tax mans radar twitching!

ETA your description of furlough is incorrect - if you were not able to get work you got Job Seekers at less than a £100 a week. If you had work but werent doing it you got 80% of your pay up to £2500 and if you were self employed you get the same....Anyone on furlough from one job could do another so they could get £2500 whilst able to work. Your argument doesnt hold water.

Feel sorry for the jobless, they didnt get more money for doing nowt....

This post has been edited by isleaiw1: 01 July 2021 - 12:51 PM

[60s 70s Spireite]

Search and Destroy, on 01 July 2021 - 09:26 AM, said:

Dividends are only taken to reduce tax liability, we all know that

If folk are putting the £11500 or whatever the tax threshold is through the books paying no tax and taking the rest in dividends then they get no sympathy from me

I’m on about the self employed who are still getting the grants while working as normal

The company, which by definition in these cases is a one man band, pays 19% Corporation Tax, plus there’s then 7.5% dividend tax on dividends over £2k (up to the higher rate tax band when it increases to 32.5%.) So hardly no tax.

This post has been edited by 60s 70s Spireite: 01 July 2021 - 07:37 PM

[Search & Destroy]

60s 70s Spireite, on 01 July 2021 - 07:32 PM, said:

The company, which by definition in these cases is a one man band, pays 19% Corporation Tax, plus there’s then 7.5% dividend tax on dividends over £2k (up to the higher rate tax band when it increases to 32.5%.) So hardly no tax.

Ah, much less tax though, and then the wife becomes company secretary on just per chance £11500 as well

[isleaiw1]

Search and Destroy, on 01 July 2021 - 09:52 PM, said:

Ah, much less tax though, and then the wife becomes company secretary on just per chance £11500 as well

Its legal so why not... and the website you are using is out of date, isnt it £12500 now?

I mean if its so good you could go and do it. It makes holidays very expensive. No company car or tax avoidance way of buying them on some scheme. No medical cover. No pension. Go give it a go and see what you think.....

[Wooden Spoon]

A friend of mine is self employed. He continued working but only on a cash only basis so was probably running at about 75%. While claiming furlough. He “banked” all his earnings while living off the furlough.


He then went for the bounce back loan because the interest rate was so attractive


So he bought a brand new Tesla at 50k. Claimed back the VAT. Tesla was then 40k. His earnings he banked came to around 20k. The bounce back loan was 20k.



He’s bought a 50k car brand new for 20k on a super cheap finance deal at mega favourable rates.


Not that I’m saying every single self enplperson has milked it but I know a few who really have done well out of the pandemic

Actually he told me had 20k in cash spare from working, not that he had earned 20k

This post has been edited by Wooden Spoon: 02 July 2021 - 12:29 AM

[Wooden Spoon]

isleaiw1, on 01 July 2021 - 10:13 PM, said:

Its legal so why not... and the website you are using is out of date, isnt it £12500 now?

I mean if its so good you could go and do it. It makes holidays very expensive. No company car or tax avoidance way of buying them on some scheme. No medical cover. No pension. Go give it a go and see what you think.....

I don’t blame them for doing it. If it’s good for sitting members of parliament to employ family members as researchers Secretary etc and be all self employed so they milk the tax system why shouldn’t anyone else?


If it’s good for sitting members of parliament to have second jobs as company directors why isn’t it good for everyone else?

[dart in the crossbar]

Wooden Spoon, on 02 July 2021 - 12:21 AM, said:

A friend of mine is self employed. He continued working but only on a cash only basis so was probably running at about 75%. While claiming furlough. He “banked” all his earnings while living off the furlough.


He then went for the bounce back loan because the interest rate was so attractive


So he bought a brand new Tesla at 50k. Claimed back the VAT. Tesla was then 40k. His earnings he banked came to around 20k. The bounce back loan was 20k.



He’s bought a 50k car brand new for 20k on a super cheap finance deal at mega favourable rates.


Not that I’m saying every single self enplperson has milked it but I know a few who really have done well out of the pandemic

Actually he told me had 20k in cash spare from working, not that he had earned 20k

Ashgate Hospice would have done wonders with the resources that you cite.

Let's hope that once HMRC et al have corrected any, lets call them 'accounting errors', the Hospice get a decent slice of the funds that will be returned to the government.