Governments Wage cover for businesses: Limited Company discussion

[Scruff]

6 months remaining on contract, plus tax return and previous year's Accounts.

[SueEllen]

Not quite - many lenders ultimately want to see accounts, including dividends being payed out in a largely maxed-out fashion to the individual. If you're not doing that, they won't all accept "but I'd take the money if I needed it"

The one that did get this was Halifax.

I used draft accounts to get my remortgage. They did contact my accountant as well.

[killingtime]

It would still be nice to know what the deal is with this, if anyone knows. The directors I've spoken to say the govt. has not published any of the restrictions, and I would imagine there will be many. Rumour is it's due to come into effect in April, but back dated to March.

Not all contractors pay a large dividend, some only claim a minimum wage to build plenty of working capital in the company. Some claim a PAYE salary up to the 40% threshold. Everyone has their reasons.

If they ask to see evidence of a P45 then for a 1 man\woman company that's not going to work for many Ltd. Co. contractors. No one left to run the company.

The 'offering' may also ask for a JSA number, meaning you have to sign-on. FYI; many insurance companies do this to save them having to prove you lost your job, if you have a policy covering this event (e.g. mortgage payment protection). When you lose your JSA number because you found a new job, or were thrown off JSA due to non-attendance, or too many 'sanctions' you also lose the insurance payment as well. Check your T&Cs. Crafty.

The devil is in the detail.

[PerfectStorm]

Indeed. In fact applying for credit as a contractor has nothing to do with a PAYE salary unless you’re lying about your status.
Day rate and trading history is sufficient.

Not quite - many lenders ultimately want to see accounts, including dividends being payed out in a largely maxed-out fashion to the individual. If you're not doing that, they won't all accept "but I'd take the money if I needed it"

The one that did get this was Halifax.

[Lance]

I've never had an issue getting credit.

I even sorted out a remortgage myself with no difficulty when one of the recommended mortgage advisors on here dropped the ball.

Indeed. In fact applying for credit as a contractor has nothing to do with a PAYE salary unless you’re lying about your status.
Day rate and trading history is sufficient.

[SueEllen]

Because if you apply for some forms of credit, they want to know your "guaranteed" income, you know, excluding bonuses and other *non guaranteed* things... like dividends.

M

I've never had an issue getting credit.

I even sorted out a remortgage myself with no difficulty when one of the recommended mortgage advisors on here dropped the ball.

[ladymuck]

Because if you apply for some forms of credit, they want to know your "guaranteed" income, you know, excluding bonuses and other *non guaranteed* things... like dividends.

M

Never had any issue getting credit.

[mjcp]

Because someone told them it makes an ir35 investigation less likely.

Because if you apply for some forms of credit, they want to know your "guaranteed" income, you know, excluding bonuses and other *non guaranteed* things... like dividends.

M

[Lance]

Most here pay a small salary - Yes indeed 100%

But most permietractors I know pay themselves between 15K and 30K for some strange reason (herd mentality)


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Because someone told them it makes an ir35 investigation less likely.

[GhostofTarbera]

I can’t see how they would. If you have no work for that reason, perhaps, but most people pay a small salary only, so it would be peanuts at best. If you think this is license to get 7.5k of free money...

Most here pay a small salary - Yes indeed 100%

But most permietractors I know pay themselves between 15K and 30K for some strange reason (herd mentality)


Sent from my iPhone using Contractor UK Forum

[Scruff]

Pay yourself a salary of £2.5k for a month, and then make a claim because you are out of contract.

Sit back and watch Netflix.

COVID-19: support for businesses - GOV.UK

[northernladuk]

Well that was a short thread.

[jamesbrown]

I can’t see how they would. If you have no work for that reason, perhaps, but most people pay a small salary only, so it would be peanuts at best. If you think this is license to get 7.5k of free money...

[sojan]

You might have seen the massive news about Government stepping in to support business by paying upto 80% salary OR max of £2500

Discussion thread about how Limited Company Directors/employees can get help on this.