Am I a director or self employed?

Discussion in 'General Business Forum' started by Priestess5, Apr 10, 2020.

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  1. Priestess5

    Priestess5 UKBF Newcomer

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    I’m really confused.

    I decided to go from self employed to LTD company in April 2019 and my accountant left a note on my 18/19 tax return saying self employed deceased in April. But within a couple of days of making that decision something happened in my personal life which I had to come away from my business (no employers and I’m the only person)

    I wasn’t putting through anything on PAYE or taught how to do it etc and any money that come in from my business just went into my personal bank.

    by the time I come back to business I’d forgot I was ltd and continued as my usual self but I didn’t speak to accountant or hmrc or put anything through in PAYE as I have no access to it or any idea how to do it?

    now this situation has occurred and my business has dried up of sales pretty much. I don’t know if I’m a director and should furlough or if I’m self employed and to get the June grant?

    When i looked on my hmrc account looks like all along my accountant has been submitting that I have £719 wages a month on PAYE which isn’t true? These aren’t figures I’ve submitted at all.

    I had submitted my self employed accounts for 16/17 17/18 18/19

    Could anyone help clarify if I’m classed as Director or SE?
    If I’m a director what should I be doing about these £719 payments his been putting through, I can’t get hold of him either.

    thanks
     
    Posted: Apr 10, 2020 By: Priestess5 Member since: Apr 10, 2020
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  2. Scalloway

    Scalloway Contributor

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    Sounds like you were acting as self employed. What was the business name on the invoices you sent out?

    I suspect your accountant has been trying to do you a favour. If your limyted company pays you that sum you are given credit for NI contributions without you aor the company having to pay anything. Also it creates a debt which the company can pay you at a later date when it has money to do so.

    You need to get your accountant to sort out the limited company.
     
    Posted: Apr 10, 2020 By: Scalloway Member since: Jun 6, 2010
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  3. Priestess5

    Priestess5 UKBF Newcomer

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    My business isn’t invoice based, it’s an online business that sells digital content on a platform and the money is paid into my personal bank.

    I’ve never even had access to PAYE or was told anything about it.
     
    Posted: Apr 10, 2020 By: Priestess5 Member since: Apr 10, 2020
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  4. Scalloway

    Scalloway Contributor

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    Then you'll need to take it up with your accountant.
     
    Posted: Apr 10, 2020 By: Scalloway Member since: Jun 6, 2010
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  5. paulears

    paulears Contributor

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    all your customers get a receipt for their payment, so you ARE providing invoices that say digital download of XXXXX £1.50, paid via paypal. That's a sale. In your accounts you are listing these sales and marking them paid. When I did lots of ebay sales, once a month I added up the sales and invoiced them on the system, to clear the money paid into the bank account - that tidies the accounts up. If you don't do this your income appears higher than reality.
     
    Posted: Apr 11, 2020 By: paulears Member since: Jan 7, 2015
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  6. Priestess5

    Priestess5 UKBF Newcomer

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    The platforms I work on don’t work in the same way. I work within the adult industry and the customer tops up money on their account, that invoice or receipt is from the platform with their details, I have zero access to that transaction. Then the customer spends their money in the account on various models on that platform.

    On my account all I see is the customers username and what they’ve clicked to purchase and the amount I get from the sale.
    Nothing is addressed to the LTD company.
     
    Posted: Apr 11, 2020 By: Priestess5 Member since: Apr 10, 2020
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  7. Scalloway

    Scalloway Contributor

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    If nothing is addressed to your limited company then I would say you are self employed.
     
    Posted: Apr 11, 2020 By: Scalloway Member since: Jun 6, 2010
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  8. Newchodge

    Newchodge Contributor

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    Which could be an issue if the accountant has been submitting RTI's.
     
    Posted: Apr 11, 2020 By: Newchodge Member since: Nov 8, 2012
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  9. Priestess5

    Priestess5 UKBF Newcomer

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    yeah I am self employed. I had forgot I’d even went LTD.
    but my accountant has been putting through that I’m making £719 on PAYE which I didn’t know or agree to these figures.

    Some months i hasn’t even sold £719 worth as a whole due to breaks I took away.
     
    Posted: Apr 11, 2020 By: Priestess5 Member since: Apr 10, 2020
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  10. paulears

    paulears Contributor

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    Without any VAT issues then surely you just invoice the people who pay you regularly and don’t send the invoice? Mark it paid when you issue it because you used the payments for the invoice total.
     
    Posted: Apr 11, 2020 By: paulears Member since: Jan 7, 2015
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  11. Priestess5

    Priestess5 UKBF Newcomer

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    As mentioned previously there are no invoicing on my end. I’m an adult performer working on multiple adult platforms where the customer tops up their account on the platform and then the customer uses those funds to spend on whichever models he wants.
    He may top up £100 in total but only spend £10 on me.

    I have zero access to the personal information of these customers, not their names or addresses etc.
     
    Posted: Apr 11, 2020 By: Priestess5 Member since: Apr 10, 2020
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  12. Newchodge

    Newchodge Contributor

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    The only possible way to sort this out is to speak to your accountant. Which will have to wait until Tuesday as it is easter weekend. Have you been sending your accountant your income and expense figures?
     
    Posted: Apr 11, 2020 By: Newchodge Member since: Nov 8, 2012
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  13. Priestess5

    Priestess5 UKBF Newcomer

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    No I haven’t been sending them, didn’t know I had to.
     
    Posted: Apr 11, 2020 By: Priestess5 Member since: Apr 10, 2020
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  14. paulears

    paulears Contributor

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    I’m really sorry to say I find it laughable you forget your status. If you are self-employed or an employee taking a PAYE wage, you probably should have noticed. Who fills in your self-assessment? That person would need to know details. If it's your accountant - how do you expect them to do it accurately!
     
    Posted: Apr 11, 2020 By: paulears Member since: Jan 7, 2015
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  15. Priestess5

    Priestess5 UKBF Newcomer

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    Laughable? Well you can laugh all you want but I personally hit an extremely difficult life situation which involved severe mental health issues so forgive me if my taxes and business was the last thing on my mind.

    My accountant has always done my self employed tax returns to which I’ve always given him my figures. But from April 2019 where I registered as LTD and he set up a PAYE account for me, very shortly after my life was turned upside down to which I was barely working and when I did it was minimal and by the time my life was in a better situation 9 months later I’d forgotten all about setting up as LTD and just continued as normal. My accountant in that time hasn’t said anything to me or asked for any figures but has been putting down £719 a month on his own merits.
     
    Posted: Apr 11, 2020 By: Priestess5 Member since: Apr 10, 2020
    #15
  16. Mr D

    Mr D Contributor

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    Which is what an accountant would do when dealing with a limited company payroll with you as a director and employee.

    Whether the business earns that in a month or not the payroll gets done. And while you won't pay taxes on it, any money you didn't receive of that payroll money you can later take out of the business tax free.

    Check up on your business at companies house, it will give details of when you have to have accounts submitted. Your accountant will need details of the company income and expenditure.
    He already knows one item of expenditure, the payroll.
     
    Posted: Apr 11, 2020 By: Mr D Member since: Feb 12, 2017
    #16
  17. Newchodge

    Newchodge Contributor

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    Is your business affected by Covid-19? It sounds like the kind of business that would be able to carry on as normal.
     
    Posted: Apr 11, 2020 By: Newchodge Member since: Nov 8, 2012
    #17
  18. paulears

    paulears Contributor

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    I find out difficult to believe you not talking to the accountant is all his fault? When you set up the company - surely you talked to the accountant and agreed how it would work? Surely you were made aware back then of the requirements of company accounting and how salary and dividends work - This is what I find laughable - you MUST have given permission for these things to have been done, and they have been doing them, and by what you say, they've done them with your nest financial interest at heart. You've been working for the year, earning money - yet each time some came in, you forgot you were no longer a sole trader? I empathise about your mental state - but you have been working, so this is why I find it difficult to accept your forgetfulness. Get in and talk to the accountant - urgently, or at least, phone them up rather than ask strangers. If your mental health is fragile then the last hing you want is the stress of making things worse. If money comes in, you do things with it - for that you need to do basic bookkeeping at the very least? You are delivering your media digitally, so is that a business internet or a private account? Are you claiming these things as expenses? all this suggests you have been switched on enough to operate, but ill enough to forget? Almost every day, I get an email that is business related and has my trading details on it - how come you got nothing addressed to XYZ Ltd, and didn't go who?
     
    Posted: Apr 11, 2020 By: paulears Member since: Jan 7, 2015
    #18
  19. Priestess5

    Priestess5 UKBF Newcomer

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    Problem is in this situation with coronavirus it’s screwed me over, because if I furlough myself 80% of £719 which isn’t even an accurate figure I’ve given. That’s an amount my accountant has decided to put on there.

    My last 3 tax returns including 18/19 was as a sole trader that’s the box that was ticked. A tax return has never gone in for LTD as it was only registered in April 2019.

    So I’m unsure if I would be classed as self employed or director. and if I’m classed as director would hmrc allow me to give them my accurate PAYE amounts rather than the ones his put in.

    Because in Feb 2020 he put in £719 where as my actual PAYE amount would have been £3400

    Yeah, it’s dead.
     
    Posted: Apr 11, 2020 By: Priestess5 Member since: Apr 10, 2020
    #19
  20. Priestess5

    Priestess5 UKBF Newcomer

    13 0
    The communication with my accountant hasn’t been great, on my part and his. When I decided to go LTD all I was told is there is a PAYE system (which I have no access to) and that I was to pay myself a wage each month. But because things went badly in my personal life I was just using all the money that entered my bank account to live on.
    I wasn’t told to report any figures, just told to document all my income and outgoings like normal.

    Absolutely nothing Is address in the LTD name, not my bank, not my payee details on any of the platforms that I work on. It’s all been in my personal name, I don’t even have a business bank in LTD just my personal bank and a business bank with Barclays which is still in its sole trader status.
    So at no point in the last year have I come across anything relating to the LTD company.

    The penny didn’t drop until this coronavirus situation come up and again I assumed I would be on the self employed list but then when reading on here I remembered that I had registered as LTD last year but then I thought well I’ve not been doing PAYE so I won’t class as a director. I logged into my hmrc account last night and saw PAYE things on there and the amounts he has been submitting.
     
    Posted: Apr 11, 2020 By: Priestess5 Member since: Apr 10, 2020
    #20
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