For the past one and half years I have been trading from multiple 24/7 self storage units. Ironically, I did it because I would have no business rates or electricity costs. I thought I was being smart. Now, I’m not eligible for the 10k small business grant and that would have covered my rent for 1.5 years.
Also, just to be pointed about your plan, you are paying business rates, just indirectly through the rental. The storage company will be paying rates and electricity then passing it on to you in rent.
Shame, you are probably right. Should be encouraged free food and a wage and fantastic eye sight to boot.
For sure, I saw it as a fixed cost flexible solution without committing to a single location and any long term contract. I also don’t have receptionist staff costs and what I pay them covers the use of forklifts and pump trucks. I still wish I had gotten my own place and 10k though.
Does the company pay you a wage? Most directors will take a wage up to the tax threshold so they should be looking at getting 80% of their wages.
Sure, and like most directors this is a very small salary and topped up with dividends!
He did describe it as a “taxable grant”, but I too think there is a lot of sugar coating of announcements. I can’t see how after describing something as a grant they can expect it to be repaid directly, but I would imagine taxation would be increased - or possibly the closure of certain loopholes and tax minimisation strategies. E.g. the director dividend strategy that a lot of EU countries closed/reduced many years ago (i.e. if someone gets 50% or more of the dividends they need to pay income tax on the majority of it).
I know what you mean. I’m neither self employed nor qualify for a small business grant. My paye was only just setup. Assuming it applies to company directors, i will get the next to nothing. Not even the grant, thats why I have to soldier on to cover my storage costs and mortgage. If I was covered by the government scheme, I’d be holed up right now as i’ve suddenly become more increasingly aware of how dangerous it is outside.
I noticed so many competitiors that I’ve been in penny wars with for the past year have nearly all dissapeared…for now.
In order to qualify for the 80% salary support the employee must be furloughed. You cannot ‘furlough’ yourself if you are the active director of a limited company.
Indeed then of course those same people who could have picked them will be moaning there are no lettuce available in their local supermarket
If you’re self employed you get paid holidays as your holidays are paid by your employer not by the state so in effect you will be paying yourself. Your profit is worked out annually for tax purposes so covers 52 weeks of the year whether you choose to work them all or not.
Totally correct. We took a massive hit with Brexit. Had to get rid of all my staff and the premises, so no rateable income, am not eligible for a loan, as a director am not eligible as self employed and cannot he furloughed. Our business to business is non existent, genuinely dont know what to do.
that was the first thought came into my mind…KARMA!!!
Yes I’m not quite getting this either. So someone for instance selling items that are doing very well currently eg hand sanitiser say and had seen profits soar, do they get the same 80% as someone (like us) who has had sales completely disappear? I saw you have to have been affected by covid but how will that be checked in reality? Or do they simply give 80% of average of last three returns, regardless of current profits?
Im not entitled any help as i started up self employed last July. Also cant get any universal credit as its a joint application and the wife earns more than the threshold. So im at the mercy of what im able to sell through my current amazon stock and ebay
my electrician friend has £35k of cash under his bed (has been moonlighting on top of a normal job) - moaning to me last night that he only went self employed last month and isn’t due anything. I kindly reminded him of his stash and said he should be grateful there are people in worst positions - who really are struggling.
Good luck in banking £35k without alarm bells ringing!
Well I said to him now is your chance to declare it with the tax return window open. What do you think he will do? lol.
In regards to the £10k business grant. Do you know if this is available to all paying business rates?
I’m fortunate that my sales have increased during this time and actually don’t need the support however i’m certain that I won’t be exempt from all the extra taxes etc we will have to pay coming out of this simply because I didn’t take any hand outs.
This probably seems selfish to some right now but i’m certain the current “highs” i’m seeing wont last once normality returns.
This is from my local authority’s website - they are actually administering the grants… so it’s a case of if you would have been business rates but are exempt due to small business rate relief. There is a separate situation for those actually paying business rates.
"Properties with a rateable value of up to £15,000 and which were in receipt of Small Business Rate Relief on March 11 2020, are eligible for a grant of £10,000.
Properties that were eligible for Rural Rate Relief on March 11, 2020 will also be eligible for this grant.
Eligible recipients will receive one grant per property."