Let me get this right
If you take say a £10K bounce back loan use it for salary, you owe approx £4.5k tax right away
But still expected to pay £10K + interest back ?
Is that right ?
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Super poster
Bounce back tax
Let me get this right
If you take say a £10K bounce back loan use it for salary, you owe approx £4.5k tax right away
But still expected to pay £10K + interest back ?
Is that right ?
Sent from my iPhone using Contractor UK Forum
More fingers than teeth
Yep
Godlike
No, Tarbie, it comes with a lifetime certificate for the avoidance of all taxes, issued by the Dutch Antilles.
Fingers like lightning
It's called Bounce back, so that you will bounce to job centre after filing bankruptcy.
Fingers like lightning
Similar how the cirtuit breaker works on the US stock market, it is intended to give time to the big players to unwind positions if the small folks panic. It gives time as well for the false naratives to kick in.
This is a cash buffer intended to keep things going and an opportunity for suppliers to ask payment from smaller firms. Otherwise they would have had to negociate on bills, arrange discounts etc... unmanageble.
A hard negociation on a bill in a period of difficulty would have been better for the small folks. Not a false sense of calm and some money printing.
But maybe I just want to see the world burn...
Super poster
Looking at the comments on facebook on starling banks and others - most people are just going to burn it on payroll
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Fingers like lightning
If they are going to bankrupt the business anyway, why not? It’s free money.Originally Posted by GhostofTarbera
They’ll just sign on benefits afterwards, enjoy some time off then open new one on parents name or with board of directors service. If they’ve already had disputes it is a blessing.
Sometimes I get the impression that playing it by the rules is all wrong.
Fingers like lightning
Why would you open new business if providing services will essentially be illegal from April?
Technically it will be legal, but it will not be possible to make profit.
Should post faster
If you are a more traditional company that requires more than just you to make money this spending it on payroll makes sense. You can't get out of COVID cash-constraints because you can't pay your staff to make your widget, and you can't sell your widgets because you've no money to pay the staff to make them. The loan just alleviates one side of the problem. If your business is otherwise viable, you will be able to sell the things you build with the loan cash and everything eventually gets back to normal.
The other option of course is to take your £25,000 (based on a one-man limited IT consultancy turning over £100k), immediately turn it round as a £25k salary payment (incurring between £3-£10K in tax and NI - depending on other payments you make this year) then bankrupt the company and go out of business. It's essentially a £25K grant so long as you have no plans to use the company again
Should post faster
You are obviously doing it wrong, plenty of people make a profit on providing services. Maybe you meant "you won't necessarily be able to make as much profit"???
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