NatureBoy Posted March 30, 2020 Report Share Posted March 30, 2020 Same hear! I think that's part of reason why they reluctant to shut the big building sites. Thousands working on them are zero hours/agency workers. Many are East European, legal or not living 10 plus in carp houses for little money, working and sleeping in shifts. When i have worked near these sites they constantly crazing me for a job. What they gona do with all them if they shut sites/ ant working? Has killed the building trades! NB Quote Link to comment Share on other sites More sharing options...
Newbie to this Posted March 31, 2020 Report Share Posted March 31, 2020 There's flights coming in, why not flights going out! Quote Link to comment Share on other sites More sharing options...
manthing Posted March 31, 2020 Report Share Posted March 31, 2020 I don't believe anyone has answered my question. Lol Are self employed profits after wages are deducted or are wages part of the profits. My wages are a cost to the company so profits are after wages. If you get what I mean. Quote Link to comment Share on other sites More sharing options...
Scully Posted March 31, 2020 Report Share Posted March 31, 2020 I wasn’t ignoring you, I simply don’t know. Your accountant will know. Quote Link to comment Share on other sites More sharing options...
amateur Posted March 31, 2020 Report Share Posted March 31, 2020 Normally company profits are calculated after deducting all wages, employees and directors and the net profit remaining is used to pay a dividend to the shareholder The problem for director/shareholders at the moment is that it is more tax efficient if you pay yourself a small wage and take the rest in dividends. Under the current circumstances you would get 80% of a small wage and no relief for the missing dividend. Quote Link to comment Share on other sites More sharing options...
CharlieT Posted March 31, 2020 Report Share Posted March 31, 2020 21 minutes ago, manthing said: I don't believe anyone has answered my question. Lol Are self employed profits after wages are deducted or are wages part of the profits. My wages are a cost to the company so profits are after wages. If you get what I mean. Yes they have. You seem to be confusing the self employed with those trading as a limited company. As you trade as a limited company you, as a director, are an employee of your company and therefore you would have to furlough yourself and then claim from your company 80% of your salary. This furloughed payment will then be paid by HMRC back to the company at some time in the future. Because you have made the tax efficient decision to trade as a limited company you are not classed as self employed. The self employed do not draw a wage as such and therefore there is no wage to deduct from from "profits" All you can claim is 80% of your salary paid through PAYE. Quote Link to comment Share on other sites More sharing options...
amateur Posted March 31, 2020 Report Share Posted March 31, 2020 If you are self employed, but not in a limited company, any amounts that you pay yourself are "drawings", not wages and are deducted after calculating net profit and you pay tax on your declared net profit. HMRC will be paying out to the self employed based upon their declared net profits. The problem for most self employed is that you normally do your damnedest to reduce your taxable profit. In the current circumstances it is biting many on the bum Quote Link to comment Share on other sites More sharing options...
Newbie to this Posted March 31, 2020 Report Share Posted March 31, 2020 (edited) What's biting me on the bum is work has been dire, pretty much since the last recession. I was currently in work on £200 a day, but going on my last 3 years (where I have been living off savings and little dribs and drabs of income) I'll be lucky to get £200 a month. Edited March 31, 2020 by Newbie to this Quote Link to comment Share on other sites More sharing options...
manthing Posted March 31, 2020 Report Share Posted March 31, 2020 I'm not confused at all. I know I'm on a hiding to nowt... I was trying to ascertain how profits are calculated for a self employed person. Are the "drawings" classed as wages and what's left profit or is it all profit. Regardless you know who's going to get hammered in the new post corona "sharing the burden" tax system don't you. 🙄😳 Quote Link to comment Share on other sites More sharing options...
TIGHTCHOKE Posted March 31, 2020 Report Share Posted March 31, 2020 1 minute ago, manthing said: I'm not confused at all. I know I'm on a hiding to nowt... I was trying to ascertain how profits are calculated for a self employed person. Are the "drawings" classed as wages and what's left profit or is it all profit. Regardless you know who's going to get hammered in the new post corona "sharing the burden" tax system don't you. 🙄😳 The ordinary man I guess! Quote Link to comment Share on other sites More sharing options...
CharlieT Posted March 31, 2020 Report Share Posted March 31, 2020 35 minutes ago, manthing said: I'm not confused at all. I know I'm on a hiding to nowt... I was trying to ascertain how profits are calculated for a self employed person. Are the "drawings" classed as wages and what's left profit or is it all profit. Regardless you know who's going to get hammered in the new post corona "sharing the burden" tax system don't you. 🙄😳 Now I understand what you are asking. So, to answer your question, it's all profit. x Quote Link to comment Share on other sites More sharing options...
amateur Posted March 31, 2020 Report Share Posted March 31, 2020 57 minutes ago, manthing said: Are the "drawings" classed as wages and what's left profit or is it all profit. As I explained above, drawings are not wages, so the profit that you declare and pay tax on does not take them into account. You pay your drawings out of taxed income. It's similar to your take-home pay, if you were employed, which is also after tax. If I am reading the Chancellor's statement correctly, the government ( or rather, future taxpayers) will be paying you a cash amount based upon your declared, taxable, income. Quote Link to comment Share on other sites More sharing options...
NatureBoy Posted March 31, 2020 Report Share Posted March 31, 2020 I think a lot of us looking at and chatting on this thread are from the manual trades/tradesmen. Either trading as a Ltd company or sole traders. Not necessarily in it for the money but Take the risk of being our own bosses for the flexibility and freedom it gives in work and lifestyle. I am certainly not and that's how i look at it. At 55 years old and 35 years working for myself i can't imagine what being employed would be like now and wouldn't want to be . . . .. But! we are under the bigger umbarella of folk that are self employed /freelancers that include actors, scientists, journalists, presenters, researchers, consultants and advisers, people that let/buy to let, them that register second homes as a business/holiday let etc. Remember the MP's expenses scandal? There a lot of scammers out there that will be trying it on! Some of these are very big earners and these seem to be the folk they gona clobber and we may get hit with them! We are small fry compared to them and no doubt some good tradesmen will pack in. Talk to your accountants if you have one. Talk to family and friends, let them know your situation and you will be needing work. Many think we are always busy and are not looking for work! A lot are surprised how this has hit us! You never know what may turn up if you stay optimistic! . . . . They said they were gona help us to look good pacify folk! In reality them that probably need it most will get very little! If at all and that will not be until June! . . . . Maybe give them a month to get on top of this. Then if you have or can get work and do it safely, do as much you can while you can and save what you can! NB Quote Link to comment Share on other sites More sharing options...
manthing Posted March 31, 2020 Report Share Posted March 31, 2020 I heard it as they would pay a percentage of profit, which is why I asked. So for me to keep me going it looks like the interruption loan that the government will pay the first year's interest on, compared with the pretty much full wage of the employed that's just great cheers. Really makes you wonder why you bother sometimes. I've managed through recessions and all the other stuff and the blummin colds gonna get me. Quote Link to comment Share on other sites More sharing options...
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