Government packages

[northernladuk]

I get your point, I get the moral issue you are raising but the question stands.

I am not looking to profit from this I am simply looking at my short to long term options on what I can do to protect my position (not lose the house and put food on the table for the family).

I have something of a window where my salary for March, April and May last year was IR35 caught meaning I can claim the full amount. whereas from June drops to way less than NMW.

The scheme is hazy on what is meant by "affected by". like I say come June I was hoping to use LTD for work but that's not going to happen now so it's a question of when and not if. I started at umbrella after Feb 28th so not covered by that - that on the governments side was a low blow.

if I am eligable to claim it would be irresponsible to not to at least consider it

Possibly but don't dress up this as anything less than fraud by way of omission. You know why the system exists and what it's meant to do. To try stuff something through the back door because you can when you know you shouldn't isn't (arguably) acting responsibly.

We don't even know how to apply yet so I am sure we don't know how to game the system yet.

[tester552]

There's a world of difference between using the entirely normal system of dividends (which are taxed) and just defrauding HMRC.

A someone starting a business, you take a lot of risk and (often) put in a lot of your own money. Being able to take some income at a beneficial tax rate acknowledges this. It is not swizzling the tax man.

Businesses with premises are getting help, why shouldn't those who don't?

Dividends are the reward for holding shares in a successful company.
PAYE wage is the renumeration of the workers working in a company.

When you designated this sum of money as dividend you put that money into the same bracket as income from Apple, Tesla etc. shares you hold on the stock exchange and you can't expect the government to pay out missing income from holding these stocks. Your accounting records clearly tells you what was the purpose of that money, it cannot have a dual nature like when taxman comes its dividend, when you need state support it is suddenly a wage expense.

If you really want this extra money from the state ask your accountant to correct filings for previous years and pay in the extra income tax, NI for those years to HMRC, then you will be able to claim it.

[PerfectStorm]

Just a quick note to say that the bank approved my mortgage holiday without much fuss - I just told them that all the usual companies that would become clients of mine around now aren't doing any business or any meetings and that I couldn't see that changing.

3 months of payments suspended.

Cashflow is king - don't get 6 months or a year into this and wish that you'd taken the offer...

[MPwannadecentincome]

Just a quick note to say that the bank approved my mortgage holiday without much fuss - I just told them that all the usual companies that would become clients of mine around now aren't doing any business or any meetings and that I couldn't see that changing.

3 months of payments suspended.

Cashflow is king - don't get 6 months or a year into this and wish that you'd taken the offer...

Payments may be suspended but interest will still accrue and you will have to pay that later surely?

[tester552]

I get your point, I get the moral issue you are raising but the question stands.

I am not looking to profit from this I am simply looking at my short to long term options on what I can do to protect my position (not lose the house and put food on the table for the family).

I have something of a window where my salary for March, April and May last year was IR35 caught meaning I can claim the full amount. whereas from June drops to way less than NMW.

The scheme is hazy on what is meant by "affected by". like I say come June I was hoping to use LTD for work but that's not going to happen now so it's a question of when and not if. I started at umbrella after Feb 28th so not covered by that - that on the governments side was a low blow.

if I am eligable to claim it would be irresponsible to not to at least consider it

I am in a similar situation and we need to eat this up.

You should not lose your house, you can get mortgage holiday and - especially as you have a family - you should have some reserves. If not, there are supermarket jobs around.

The scheme is very bad though I agree with that.

[PerfectStorm]

Payments may be suspended but interest will still accrue and you will have to pay that later surely?

They're yet to work out what they want to do on that front but they'll either add 3 months to the end of the term or spread the interest over a year.

[dx4100]

Possibly but don't dress up this as anything less than fraud by way of omission. You know why the system exists and what it's meant to do. To try stuff something through the back door because you can when you know you shouldn't isn't (arguably) acting responsibly.

We don't even know how to apply yet so I am sure we don't know how to game the system yet.

It really isn't fraud - from my interpretation today anyway - but you are welcome to your usual forthright opinion and I take it onboard.

I wouldn't dream of doing anything that was illegal or is illegal. In the end its question about eligibility - or not... I get its questionable and I will explore and consider that further.

Believe it or not - I am not looking to profit or game anything - my primary concern is just paying the bills and keep the lights on.

[dx4100]

Just a quick note to say that the bank approved my mortgage holiday without much fuss - I just told them that all the usual companies that would become clients of mine around now aren't doing any business or any meetings and that I couldn't see that changing.

3 months of payments suspended.

Cashflow is king - don't get 6 months or a year into this and wish that you'd taken the offer...

Mine was approved 100% online - no justification - they just did it...

They also didn't tell me how much my payments will go up by etc. Both helpful while at the same time worrying...

[dx4100]

Payments may be suspended but interest will still accrue and you will have to pay that later surely?

Yes your monthly payments increase after the 3 months...

[ladymuck]

Payments may be suspended but interest will still accrue and you will have to pay that later surely?

Yes but the cost of that will be less than the cost of getting in pickle due to restricted cash flow.