Quote:
Originally Posted by mrmistoffelees
Again, they should have planned for their financial future better and not expected that the state would be there to support them
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Assuming that individuals are in a financial position to be able to do so, I agree, but they're not. Some people have done extremely worthwhile, but low paid, jobs that benefit society or have been unable to
work at all because of caring responsibilities that save the taxpayer a fortune.
---------- Post added at 14:59 ---------- Previous post was at 14:51 ----------
Quote:
Originally Posted by Escapee
Remember that if you are running a small company and you are the sole employee, you personally have generated all of the revenue. The business will have operating costs on a daily basis, investment in equipment etc, accountancy fees, PAYE fees, the cost to process and collect VAT for HMRC, insurance fees such as professional indemnity and public liability. If the director takes a salary there's employer NI and finally the corporation tax. The director can only take dividends out of what's left after all of this has been paid, but remembering to leave a surplus of retained profits for lean periods.
Offsetting losses is not much help in reality for a small business if there's a lean time where there is little or no money being generated.
Do they pay double taxation in the USA as we do when a contract has been deemed to be inside IR35?
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In lean times small business owners are able to claim means tested benefits just like anybody else. However, the changw of calculation rules since the introduction of Universal Credit is now causing some problems (in particular for farmers) as is the use of a notional minimum income (whether actually earned or not) after one year.