Help for self employed

HappyHacker1

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Not really sure where I said I was self employed but these experts eh? Glad I live amongst them.
I didn't read the rest of your posts, all I read was 25 days holiday, which lead me to believe you weren't self employed, and if that's the case, then I was correct, what's the issue ?
 

Lord Tyrion

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I personally know hundreds of contractors and the vast, vast majority are above board. Again there is this perception that everyone that's a contractor must be a rogue fleecing the system.
I quite agree with you. I actually would not be putting contractors in the questionable bracket. Contractors have to put in invoices to be paid, invoices are a trail. Payment will be by transfer, again a trail. Once you have a trail the abuses drop dramatically.

The entertainment 'contractors', arts, sports etc that get paid not by salary but to a company when in reality they are employees, that is a loophole that the govt have been trying to close and I agree with them.

True contractors, who inevitably bounce around with multiple clients, different beast.

I think we are actually on the same hymn sheet here when you scratch the surface. Both have businesses, both pay our taxes fairly. I'm just not going to shed tears for those who have hidden money from the taxman and are now complaining when it costs them in govt support at this moment.
 

Lord Tyrion

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Whilst the likes of Amazon and even Jacob Rees Mogg’s company getting away without paying £0 Corporation Tax. Disgusting.
I could have written word for word Colchester's post. I also remember that year, it was disgusting and I quote it often. Equally disgusting is the number of large corporations who negotiate their tax bill with HMRC 🤬🤬. How the heck does that work?

All of the tax not paid, that is a doctor, a nurse, a ventilator, a teacher, police officer, social worker, care worker etc not employed or being trained. It's serious stuff at all levels, the one man band or the mega corporation.
 
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I'm in the same boat, Ltd company of a building surveying company and I'm the sole director. All our invoicing is transparent, I pay all our Corp Tax and VAT which isn't an insignificant amount as some would believe. Out of my dividend comes any sick or leave I take during the year and there's also the strain of starting each year on zero and not knowing what work will come in.
It's a way of working I've been trying to move away from as I find it too stressful and as business has tanked for me due to coronavirus the lack of government support could well be hastening that departure.
 

harpo_72

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I quite agree with you. I actually would not be putting contractors in the questionable bracket. Contractors have to put in invoices to be paid, invoices are a trail. Payment will be by transfer, again a trail. Once you have a trail the abuses drop dramatically.

The entertainment 'contractors', arts, sports etc that get paid not by salary but to a company when in reality they are employees, that is a loophole that the govt have been trying to close and I agree with them.

True contractors, who inevitably bounce around with multiple clients, different beast.

I think we are actually on the same hymn sheet here when you scratch the surface. Both have businesses, both pay our taxes fairly. I'm just not going to shed tears for those who have hidden money from the taxman and are now complaining when it costs them in govt support at this moment.
IR35 was getting strict on this but there was one loser and that was the contractor. You can be sympathetic or not but most were looking at a significant wage reduction as their hourly rate was not going to be increased to compensate. The contract market seemed to freeze with most looking at permanent positions.
When I priced for a contract, and when I converted I worked on what annual salary they had or I could ask. I would then divide by 46 weeks and that was my basic start point. Take into account private health care and pension contributions at full whack. So when I was bringing contractors back into the permanent world, I would offer less knowing that there were benefits that took them over and above their existing situation.
You do get the poorly negotiated contracts, and these are a nightmare. These are the ones that are over and above a reasonable rate and significantly higher than your internal specialists, meaning you could not offer a permanent position offering that wage. With those I would look to an initial discussion, and then investigate the skill level. Eventually you just end up not renewing the contract as they are bad for internal moral.
As most people get used to a wage and benefits
 

Lord Tyrion

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I'm in the same boat, Ltd company of a building surveying company and I'm the sole director. All our invoicing is transparent, I pay all our Corp Tax and VAT which isn't an insignificant amount as some would believe. Out of my dividend comes any sick or leave I take during the year and there's also the strain of starting each year on zero and not knowing what work will come in.
It's a way of working I've been trying to move away from as I find it too stressful and as business has tanked for me due to coronavirus the lack of government support could well be hastening that departure.
My wife is part of a 'women in business' group. They have a FB page, closed, which is very active right now. A lot of the talk, both from them and also advisors who come on and help, is about using this time to re-evaluate your business. Do you actually make a profit? Do you make sufficient profit? Which customers give you sufficient profit, which do not? Which customers give you too much hassle for the money involved? Do you enjoy what you do? Is it time to call it a day on your business?

You will not be alone in looking at how you work, this is a real benchmark moment. We have toyed with making some key changes to our business and we will be using this quieter time to look through product lines and customers that we might drop, possible downsizing our premises, staffing etc. Council work is starting to look quite appealing right now, steady as you go........:D
 
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My wife is part of a 'women in business' group. They have a FB page, closed, which is very active right now. A lot of the talk, both from them and also advisors who come on and help, is about using this time to re-evaluate your business. Do you actually make a profit? Do you make sufficient profit? Which customers give you sufficient profit, which do not? Which customers give you too much hassle for the money involved? Do you enjoy what you do? Is it time to call it a day on your business?

You will not be alone in looking at how you work, this is a real benchmark moment. We have toyed with making some key changes to our business and we will be using this quieter time to look through product lines and customers that we might drop, possible downsizing our premises, staffing etc. Council work is starting to look quite appealing right now, steady as you go........:D
The irony of this situation is I had already made the decision to move back into Life Sciences and was 90% through the process of selling the business which has now gone down the tubes. Independence and Brexit have taken it's toll on the business and me, I never really adapted to Self Employment, you're either stressed because you have too much work coming in or stressed because it's gone quiet.
What I don't understand is why the government has cut us adrift in this situation. What's their thinking?
 

Lord Tyrion

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The irony of this situation is I had already made the decision to move back into Life Sciences and was 90% through the process of selling the business which has now gone down the tubes. Independence and Brexit have taken it's toll on the business and me, I never really adapted to Self Employment, you're either stressed because you have too much work coming in or stressed because it's gone quiet.
What I don't understand is why the government has cut us adrift in this situation. What's their thinking?
It is tough having your own business. We were out a month or so ago with friends and they asked me what I would do if I didn't have the business? I replied bus driver at the airport taking people from long stay to the terminal. I turn up, do my job, go home, no worries, take holidays without worrying and when I want. My wife laughed, she thought I was joking. I haven't the heart to tell her otherwise. Brexit has been a 3 year drain, this twists the knife. Very hard to switch off, although easier when all is going well.

I think a section of businesses are inevitably slipping through the net, it is always the way. They are making policy under pressure and on the hoof, tough to do that. I think most of what they have done is very good, we will just not benefit. We miss the rates freebie as our premises are too large. They are not too large out of choice, there was no middle option when we grew and had to move. We have empty space but that tips us over the edge. We are not retail so no £10k freebie. We can furlough our staff, we have done as it is not safe for them to work here and keep the 2m distance, but that is it. Not a lot we can do about it. Can you furlough yourself? Have you looked at that? It would mean that you could not work at all during that time so it depends if you have any work at all right now.
 

road2ruin

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So Martin Lewis tweeted yesterday.....

CONFIRMED self-employed limited company directors CAN be furloughed as employees on their PAYE element, even if theyre sole employee.

Technically they can't then work for the firm, but can continue to perform their statutory obligations as directors eg official legal filings etc
 

GreiginFife

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They don't take 25 days, that's for sure, doubt if I've had that in the past 3 years.
Whoopty for you. But you still take holidays, no? Any day not working but not sick is a leave day (aka holiday) no? Again, ok cup cake.

People can take as many leave/unpaid days that they like, it doesn't change their status.
 

road2ruin

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I'm self employed and take over 25 days. Why would You say they don’t. One of the benefits of it for me.
I’m the opposite, having run the business for 12 or so years I miss the allocated holiday where you switch off and you’re not expected to do anything. I rarely have those days although the flexibility of choosing what to do and when plus the time I get with family is the upside.
 

HappyHacker1

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I'm self employed and take over 25 days. Why would You say they don’t. One of the benefits of it for me.
Well lucky you, you must be earning plenty to do so.

Whoopty for you. But you still take holidays, no? Any day not working but not sick is a leave day (aka holiday) no? Again, ok cup cake.

People can take as many leave/unpaid days that they like, it doesn't change their status.
I'm not exactly sure why you're being so rude with your replies because I question the days off. Anyway, if my week is a 6 day working week, no I don't class the other day as a "holiday" that would be absurd.
 
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