Uk gov bailing out companies who pay very little uk corp tax

[42]

I only formed the company as a mechanism to take a contract role, after leaving an awful £40k job, but as I'd be earning twice that it was too good to turn down as you can imagine. I too was living off the dividends made, but now I'm furloughed an not allowed to continue trading. 3 engineers, in the same role, within the same department, in the same company... Ex colleague of mine started his business 9 months before me, so he qualified by submitting a tax return 18/19. We're due to pay the same tax next year, except I'm getting £575 a month from the government and he's getting £2499 a month. Then there is the other lad who's an employee of the company who's getting about £4000 a month on furlough, again doing the exact same job as we were. That's the impartiality I cannot stomach. I've either got to start a new career or go into massive debt.
about 25% of the workforce or 3.2 million self employed. We pay the same tax in end as the "employed" yet they all get support and we get none and branded as cheats.

Really?
The reason this has come about is those who are paying themselves in dividends to avoid paying national insurance.
Don't get me wrong, if I had my own business I'd be doing the same but it's still a form of tax avoidance.

 

[Select coaches]

Really?
The reason this has come about is those who are paying themselves in dividends to avoid paying national insurance.
Don't get me wrong, if I had my own business I'd be doing the same but it's still a form of tax avoidance.

Why would anyone pay more tax than they need to? It wouldn’t be rocket science to close this loophole. Hardly any saving in it now anyway versus self employed.

 

[42]

Why would anyone pay more tax than they need to? It wouldn’t be rocket science to close this loophole. Hardly any saving in it now anyway versus self employed.

Indeed, but with the benefit of hindsight how many would have done things differently if they knew they were going to screw themselves over by not paying NI?

 

[Select coaches]

Indeed, but with the benefit of hindsight how many would have done things differently if they knew they were going to screw themselves over by not paying NI?

With the benefit of hindsight there are a lot of things I would have done differently, how I paid myself would be way down the list.

 

[DoctorMick]

Apart from the 10 and 25k grants, rates holidays and being able to furlough staff I agree with you. Oh and 80% of your profits if you earn under 50k and are self employed. And the bounce back loans which are almost free.

But apart from that...

Why would anyone pay more tax than they need to? It wouldn’t be rocket science to close this loophole. Hardly any saving in it now anyway versus self employed.

They wouldn’t but people who’ve exploited the system (of which I’m one!) shouldn’t complain when the system they’ve avoided paying into doesn’t support them as well as others who’ve paid more in.