Self employed (sole trader) who employed husband who has to be let go. Entitlements?

Complainer said:
I don't understand this. Do you mean to say that you're taking a wage from the business, and most or all of that wage is going on your mortgage repayment?
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When you are self employed, you take money you have earnt from the business to pay your mortgage. If you don't earn enough money you can't pay your mortgage!!
 
Hebs said:
When you are self employed, you take money you have earnt from the business to pay your mortgage. If you don't earn enough money you can't pay your mortgage!!
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I'm still confused. Have you been earning money from the business or not? Have you been paying the mortgage or not?
 
Complainer,
Maybe I didnt explain myself properly.My business can just about afford to pay the morgage on my business premises.The problem is my accounts show that the business cannot afford to pay any salary but I have no choice but to take a wage to pay my house morgage(interest only)and household bills beause my husband is unemployed and in receipt of 8euro a wk social security.This is putting my business under severe pressure because i am in arrears with vat,suppliers etc.What option do I have?
 
OK, now we're getting closer, but I'm still a little bit confused. When you say 'mortgage on my business premises', are you sure that this is actually a mortgage. It would be unusual (but not impossible) for a business to have a mortgage on a business premises. It would be far more usual that the business is renting its business premises. So is it really a mortgage on the business premises?
 
xeresod said:
To to try to make ye feel a bit better; it's your customers that actually pay the VAT - you just collect it and pass it on to Revenue so it's not an actual cost to you!
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Yes, point taken!

My point was that it's hard to have watched the previous government squandering all of that VAT money I generated for them! :)
 
JoanJ - have you asked for a review of your payment? €8 is an insult. I was told that they review self employed people all the time so if you go in with your latest figures maybe you will be entitled to more?
 
Hebs, yes it is a 20yr morgage on business premises(3yrs into it).My husband is waiting to hear from the appeals process in relation to social welfare but as far as I know this can take months.In relation to the morgage on business premises I have applied for interest only but have been told by my bank that even if I get it that my interest rate will go up from 3.2 to at least 5% because it will be a break in my loan contract.This will defeat the purpose of looking for reduced payments.Catch 22.
 
joanj said:
Hebs, yes it is a 20yr morgage on business premises(3yrs into it).
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Sorry to be probing, but I'm still a bit confused. I know the mortgage is for a business premises, but is it the business that owes the money to the bank on this mortgage, or do you/your husband owe the money personally to the bank. Do you own the property, or does the business own the property?
 
Complainer,we owe the money personally to the bank for the morgage on the business premises.I am a sole trader so if the business goes under we personally owe all outstanding debts.If i was renting I would have closed the business last year but I have to keep trading to pay the morgage.
 
OK, so now we have a clearer picture. You (along with many others) got into property investment, at the peak of the boom by buying your business premises. This was a fairly common tax planning device, a way for business owners to extract pre-tax money from their businesses.

Your business is now in difficulty. You seem to be taking money from the business to pay your home mortgage, and (presumably) the mortgage on your investment property (the business premises) is going into arrears.

For a start, please don't have any expectation that Social Welfare will be supporting your property investment. That's not the role of the State.

While your description of what's going on isn't very clear, it sounds like you could be at risk of fraudulent trading. If you are taking money out of the business to pay your home mortgage, you may well be taking money that rightfully belongs to suppliers and Revenue. You really should get some good advise on this from somebody who can sit down with your figures.
 
Actually I purchased business premises over 10yrs ago but had to remorgage 3 yrs ago because of another business goin under.I remorgaged to clear all outstanding debts.I never for one minute expected Social Welfare to support my property investment but what I do expect is that my husband would be entitled to a social welfare payment to put food on the table for my family as nither of us has ever looked for social welfare before.I also feel it is unfair practice of banks to increase interest rate on a morgage just because you need to go interest only for a year.Yes I might be at risk of fraudlent trading but given a choice of feeding my family and keeping a roof over our heads I will take that chance.I would imagine even you would make that decision.
 
Hi,

I think the first mistake you made was to provide the correct paper work, audited accounts from a company with a good reputation / public profile (not meaning accountants aren't reputable).

S.W. do not believe some accountants are willing to work for a client based on past dealings hoping we will all come good in the future (told to me by an accountant) the idea being if you can afford to pay the accountant you don't have an emergency need.

We know the accounts are legally needed for other returns and try to stay legal but Government departments do not communicate if they did our Ministers would be looking at a system to keep us in business.

Keep trying, next time find someone with no assets to act as your company directors, that way you will qualify for everything as an employee.
 
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