The personal cost of the lock down

[Gunk]

I’m pretty much screwed as I was in the middle of changing jobs, my new employer has laid me off and as my previous employer has already taken me off the payroll they can’t furlough me.

Thank Christ I sold my Ltd company a couple of years ago and still have some cash in the bank. Fortunately we can manage but it’s not ideal. Some people are much worse off and I really feel for them. Horrible times.

 

[screenman]

Ltd company directors might be covered if they’ve also been on payroll paying income tax and VAT. If purely paid through dividends then it would appear not.
And yes, you are invited to apply if you qualify. Which will happen between sometime between now and June

I am suprised at your last bit as I C&P that off of hm.gov, happy to have a link if you could. I know of a good few LTD directors who are not feeling to happy now but I suppose they had the benefits before.

 

[Gunk]

My wife is paid out of a small Ltd company we still have, but like most directors has only been paying herself £719 a month so to Furlough her won’t bring much financial support in.

 

[vickster]

I am suprised at your last bit as I C&P that off of hm.gov, happy to have a link if you could. I know of a good few LTD directors who are not feeling to happy now but I suppose they had the benefits before.

I don’t follow? What bit are you surprised by? It won’t happen automatically from what was said in the press briefing last week, there’ll be a form to complete
I’m only going on something a friend told me

 

[vickster]

My wife is paid out of a small Ltd company we still have, but like most directors has only been paying herself £719 a month so to Furlough her won’t bring much financial support in.

I pay myself £2200 a month. I don’t know if I’d be eligible but it’s not crucial for me fortunately (and I’m still working under contract!)

 

[screenman]

I don’t follow? What bit are you surprised by? It won’t happen automatically from what was said in the press briefing last week, there’ll be a form to complete
I’m only going on something a friend told me

The bit I quoted said not to apply if self employed, I best read it again.

 

[vickster]

The bit I quoted said not to apply if self employed, I best read it again.

Yiubapply after being invited to do so is my understanding (i.e.presumably You're eligible)

 

[screenman]

I pay myself £2200 a month. I don’t know if I’d be eligible but it’s not crucial for me fortunately (and I’m still working under contract!)

You pay yourself way more than most do, I know of one guy taking £780 a month in wages the rest you can guess.

 

[vickster]

You pay yourself way more than most do, I know of one guy taking £780 a month in wages the rest you can guess.

I pay myself enough to cover my monthly expenses and non essentials. Dividends get saved (or spent on holidays )

 

[fossyant]

Just found this,

How to apply

You cannot apply for this scheme yet.

HMRC will contact you if you are eligible for the scheme and invite you to apply online.

Individuals do not need to contact HMRC now and doing so will only delay the urgent work being undertaken to introduce the scheme.

Oh right, they might be a Ltd company. Just the two of them running a shop.

 

[fossyant]

I pay myself enough to cover my monthly expenses and non essentials. Dividends get saved (or spent on holidays )

I've known folk take £1k a month as pay, but about 4x that as dividends each month - but they had a construction company, where everything is a bit close to the rules.

 

[vickster]

I've known folk take £1k a month as pay, but about 4x that as dividends each month - but they had a construction company, where everything is a bit close to the rules.

I pay myself an annual dividend plus the £2k tax free as advised by my accountant 👍

 

[Milkfloat]

So today it got even more real for me. The sign is sent pay rise I got for my promotion two months ago is not going to happen, but at get to keep the job title and responsibility, so I am effectively blocked for another 10 years. On top of that everyone in the company has to take a 5% pay cut. No consultation on any of this, just a bland announcement.

 

[slowmotion]

I've known folk take £1k a month as pay, but about 4x that as dividends each month - but they had a construction company, where everything is a bit close to the rules.

It was perfectly legitimate to pay yourself with dividends and a small nominal salary. HMRC's website had advice on the matter. It's not nearly as tax-advantageous as it used to be. The rules changed about five years ago, I think.

 

[newfhouse]

It was perfectly legitimate to pay yourself with dividends and a small nominal salary. HMRC's website had advice on the matter. It's not nearly as tax-advantageous as it used to be. The rules changed about five years ago, I think.

Does it still reduce employer’s NI? If so, it’s hard to be too sympathetic.