Limited Company

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Andy Shaw (left) and his business partner Jake, to say that your company has built up is in danger

Andy Shaw, 57,, painting and decorating company with his brother-in-law, Jake, but saw now, the work is drying out due to the coronavirus lockdown.

"We could, without business or savings, it would be absolutely devastating," he says.

Why? Because the company is a public Limited Company and The Duo are the Directors of the company, the dividends pay off. Like hundreds of thousands of people who have their business in the same way that you get little or no state support.

it was His company in the location, on vacation, or put you on a state-paid vacation, his two full-time employees, some of the pressure off. But he and Jake will personally come for much less than you dividends, which will not cover the Government pay.

"We may be on vacation, even for the small salaries that we take, but that will just not leave us with € 600 each month, to cover my costs," explains Andy, from Berlin, Staffordshire

furloughing you would have you could not work on something that brings money for The Business , not only the organizational work as a Director.

"It does not mean that we will be able to work in a time when our business is on The Brink ," he says.

There is a real prospect that he might have shut up shop and lay off their employees.

Why have to be limited to small businesses, companies?

now from a single company into a limited liability company has been popular in The Past , with Owners of small businesses - from marketing agents milkmen - always the Board of Directors and with professional-sounding title that comes with it.

Historically, it is saved on your tax bill, even though this advantage has been significantly watered down in recent times.

For many the attraction is the separation of the personal finances of The Business and to protect themselves as individuals, when something went wrong, with a supplier or customer.

Also, that unemployment benefits be reduced if, for example, the banks, The Business owner's house to demand as a security for a loan.

Like so many companies, so They are now in difficulties in The Light of the coronavirus limitations, and The Choice of a company to be a liability seems to be a expensive.

Why are you unhappy?

The Government has said it will pay 80% of employees and self-employed workers ' income, up to € 2,500 Per month, for three months, if you are furloughed.

But it is not covered dividends, because it says there is no way to tell whether the people you have, instead of wages or as return on capital employed in their own business or an investment.

This means that people such as Andy and Jake, the numbers are usually in the Form of dividends, to say that, in General, holiday pay - About 80% of what you pay yourself as a salary, would usually give them About £585, - Per month, Making It difficult to put food on The Table , after The Business are paid and personal accounts.

activists point out that most of the companies are head particularly wealthy, with many, small companies, or self.

"these are real, hard-working people who have built successful businesses and paid taxes all their life, now facing hardship, with little of the current support for them," says Mike cherry, national Chairman of The Federation of Small businesses.

Some were 327.000 people have been calling on the Government to change course. A remedy, They argue, is to be included the dividend income in the calculations for holiday, rather than just a salary.

Although the Small Business minister and Chancellor Rishi Sunak has said that he is open to new ideas, there is No Plan from the Treasury to change their policy.

"Those who do not qualify for the conveyor systems will be able to access a number of other measures," Treasury", says the spokesperson, including the Income Tax , references, and mortgage holidays.

'Crushed'

Nick Steele , 46, is one of the many who say that you as a company with limited liability, be treated in the promotion of a Government , only now from a different.

He and his partner have the hospitality recruitment in Gloucestershire since 2006, but since the epidemic hits, all of which is to evaporate their work.

Nick Steele is one of the affected by the shutdown in the hospitality industry

"at the time, I think They thought it was better controllable and easier to control in limited liability companies. Now it seems this Government wants to crush," he says.

"I borrow no other choice but to sell, personal possessions and money. For the record, I have a Government scholarship can't, because I will not to enter into any premises, I might be able to get a loan, but I don't want this risk. "

He believes that the Government control is of no interest to the support for limited Company Directors due to a perception that you pay less.

But the setting in a professional, earns About £45,000 in the year, mainly in the Form of dividends, says he pays "not more or less tax than self-employed or employed people". He also indicates he has no right to state-subsidised services such as the statutory continued payment of wages.

"I'm not some high-net-worth individual, I am squirrelling money away. I fill a tax return every year, it's just that in a Column I have my receipts from the wage tax (paye), and in another the income from dividends.

"The policy of the Government , only do not stack. "

Sonali Joshi says that you are eligible for various public support measures

Sonali Joshi , 45, whose business provides access to services for The Film industry, such as subtitles and audio-descriptions says that you are struggling to ends.

"we have a lot of ideas of How To reconfigure our business in these difficult times, we need investment to do this, and now we have nothing. "

she says that you don't have access to a Coronavirus-business interruption-loan, according to your bank, because your 2019 turnover was less than £100,000. You are also not qualified for the £10,000 funding initiative for small and medium-sized companies, get rates relief because They do not have all of the rooms.

"VAT provision, does little for us, because the work tailed off weeks, as We Are International and coronavirus began to work, the impact of our work much earlier this year. We do not qualify for universal credit," she says.

"We feel abandoned by the Government . We hear the Chancellor says: 'We Are All In this', and that the United Kingdom is a great environment for small businesses, but it's not the feeling that now, due to the lack of support. "

personal finance, entrepreneurship, coronavirus pandemic, companies, money

Source of news: bbc.com