There are still some schadenfreudes out there who think we’re tax dodging millionaires who don’t deserve anything.
Let me explain.
Most of us have been advised to structure taking money from our business in the following way for tax efficiency purposes.
A minimal annual directors’ salary circa £7-£12k
We pay directors paye on this.
Dividends when we can.
We pay tax on this.
We also pay corp tax and VAT (if applicable due to size)
Why do we do this?
As we don’t receive a pension/sick pay, holiday entitlement, notice period or redundancy so need to put aside for this.
We’re not guaranteed a salary as per PAYE employees.
If we don’t work, we don’t get paid.
We also poured in our own cash to get things started and have given blood, sweat and literal tears to keep things moving.
So, next time you see a sole director post about help, try to find that empathy part of you that’s been pushed so far down due to the divide this government fosters and think about what’s on the other side.
An actual person.
Bottom line, we’re not asking for special treatment, just the same as all the other taxpayers, of which we are too.
Parity not charity.