Jump to content
DOSBODS
  • Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

Recommended Posts

This will be interesting... Directors of small Limited companies have received virtually nothing from the furlough scheme. Lots will be making a loss this year, but in January they will have to pay corporation tax on profits made just before this clusterfuck hit. Some will have invested in equipment and will have to pay the tax on that too. They can do a claim back the following year, but that might be too late for some. I wonder if the government will go for their throats and demand the cash in suicide season, or will they come up with a deferral scheme?

Link to post
Share on other sites
6 hours ago, OurDayWillCome said:

This will be interesting... Directors of small Limited companies have received virtually nothing from the furlough scheme. Lots will be making a loss this year, but in January they will have to pay corporation tax on profits made just before this clusterfuck hit. Some will have invested in equipment and will have to pay the tax on that too. They can do a claim back the following year, but that might be too late for some. I wonder if the government will go for their throats and demand the cash in suicide season, or will they come up with a deferral scheme?

They are paying tax on profits already made and banked.

They will have been able to apply for a loan to cover any loss making period.

I don't think .gov will see it differently.

Until the media find half a dozen sob stories and force a u-turn.

Link to post
Share on other sites
10 hours ago, OurDayWillCome said:

This will be interesting... Directors of small Limited companies have received virtually nothing from the furlough scheme. Lots will be making a loss this year, but in January they will have to pay corporation tax on profits made just before this clusterfuck hit. Some will have invested in equipment and will have to pay the tax on that too. They can do a claim back the following year, but that might be too late for some. I wonder if the government will go for their throats and demand the cash in suicide season, or will they come up with a deferral scheme?

Why January? Has the tax system changed? Or are we talking about companies with 31st March year ends?

Link to post
Share on other sites
1 hour ago, OurDayWillCome said:

You can only get a loan if you pay business rates. It’s the small limited company directors who pay themselves from profits that are going to struggle to pay the tax bill at the end of the year.

No. You got a grant based on business rates.

Anyone could get a loan of up to 25% of their turnover.

You just needed to be able to fog a monitor.

Link to post
Share on other sites
1 hour ago, The Generation Game said:

Why January? Has the tax system changed? Or are we talking about companies with 31st March year ends?

You don’t have to file your accounts until later in the year and then they  give you till the end of the year to pay up.

1 hour ago, Wight Flight said:

No. You got a grant based on business rates.

Anyone could get a loan of up to 25% of their turnover.

You just needed to be able to fog a monitor.

I didn’t know that! How long is the loan for and are they charging any interest?

Link to post
Share on other sites
23 minutes ago, OurDayWillCome said:

You don’t have to file your accounts until later in the year and then they  give you till the end of the year to pay up.

I didn’t know that! How long is the loan for and are they charging any interest?

6 years. First year is interest free and then 2.5%

Link to post
Share on other sites
3 hours ago, Wight Flight said:

No. You got a grant based on business rates.

Anyone could get a loan of up to 25% of their turnover.

You just needed to be able to fog a monitor.

It is worth highlighting the 'turnover'.

Small specialist businesses tend to be high margin -- the loan could cover next year's tax bill, etc.

Retail businesses are high turnover, low margin -- a loan could easily cover many years' profits.  I imagine we'll see quite a bit of money extraction and then business folding.

That said, the deal is pretty good and most small businesses should take one out even if they've not got a planned use for it yet.

Link to post
Share on other sites
2 hours ago, dgul said:

It is worth highlighting the 'turnover'.

Small specialist businesses tend to be high margin -- the loan could cover next year's tax bill, etc.

Retail businesses are high turnover, low margin -- a loan could easily cover many years' profits.  I imagine we'll see quite a bit of money extraction and then business folding.

That said, the deal is pretty good and most small businesses should take one out even if they've not got a planned use for it yet.

Retail’s high turnover low net profit but that’s nitpicking your point is right.

Frankly, though it’s only businesses with assets that probably need to either worry or bother about paying them back at all.

They can’t go after either their main home or car, as I understand it, so in a lot of cases that will leave nothing that won’t cost more to pursue. 
 

Anyone turning over £200k, or less, should be quietly in the least suspicious way reorganising their affairs to never repay it.

Link to post
Share on other sites
21 minutes ago, SNACR said:

Retail’s high turnover low net profit but that’s nitpicking your point is right.

Frankly, though it’s only businesses with assets that probably need to either worry or bother about paying them back at all.

They can’t go after either their main home or car, as I understand it, so in a lot of cases that will leave nothing that won’t cost more to pursue. 
 

Anyone turning over £200k, or less, should be quietly in the least suspicious way reorganising their affairs to never repay it.

Which is why they will make it interest only.

There will also be forbearance on all other taxes as the outcome of a company folding is now much higher.

Be careful who you give credit to next spring.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...