CV19 Micro Limited Companies

00:00 - On today's video, I want to talk about micro limited companies and personal service companies. These are companies that are really small run by an individual, maybe a small team of people, and. They have may or may not have some employees, they earn their income through like self employed people, except they work through a limited company and, uh,

22:00  - they pay themselves usually by salary and part of it is paid by dividends.

22:04 - So if they don't earn much money, they don't get much of a dividend. If they earn money, they get a dividend. So they live by day, which you know, the harder they work whenever they work, the more they get paid in, the more they can have as a dividend. But if they pay a salary, they don't know how much they're going to learn from time to time.

22:20 - So you know, it's not wise to pay a salary, which you can't afford. Now, this is what we're going to be covering on this particular one. So we're going to be talking about postal service companies as well. And these as a one man, companies that offer their own services, their own skill. So, so what have we got, uh, to, to have the, what can they get right?

22:46 - The first thing they can get is they can get statutory sick pay.

22:56 - Now if they are sick or they have to self isolate because they'd been

23:00 - in contact with someone else. Then of course, they can get statutory sick pay and what the statute is sick Bay, uh, the government will actually contribute. Normally the government doesn't. But in this particular case, the government has said that they will contribute to the company to put back in the company.

23:17 - The stature stipulate that they'd out the smoke very much. I think it's my 90 pounds a week, but it is better than nothing. So we can claim such a sick pay if you are not well or. We've been self isolating because you're getting in contact with someone and it turns out that you were okay and you can still claim for up to two weeks employee Candace.

23:40 - I mean, you get one two week lot and that's your luck. The second thing you can claim for is furlough. So now if you all feel load. And that means you can't work. You don't work at all. Then what you have to do is, uh, 24:00 - okay. You just makes you sit at home and either you're going to do some training, which we do lots of, to help businesses do better, get ready for the end of this.

24:09 - Coven borrowers, we do that training and they can do training or self-improvement and as long as they get paid. Well, the training they do as at a minimum wage, which is fine. They can still get the 80% furlough. Remember, that's 80% coming from the government. Now, that doesn't mean your company can also top up the other 20% if you're on, you know, a thousand pounds a month wages, then the government will pay 800 pounds and you the company tops up to a hundred pounds.

24:41 - Of course it's taxable as text and national insurance. It deducts on that to pick up and get some of it back. But it's, it's a, you know, it's a good deal, no question about it. So you get that. But again, it's only on your pretty low salary in normal cases. Most of mine.  will learn a very small salary and as a son, and as 25:00 - such, that salaries, all, they're going to be entitled to nothing for dividends, any dividends they get because they've had the votes a bit more.

25:07 - Maybe they've earned 30 or 40,000 pounds in dividends. Well, $100,000 in dividends. They don't get anything for that tool. They only get 800 pounds a month, which is, which is obviously not a lot. But that's what you're entitled to. The third thing you you can do, of course, is you can play universal credits.

25:33 - Okay? Now, if you're all stuck, then you can claim universal credits. Be aware that universal credit takes a while. You may have to get a loan on that. I'm not sure exactly how it works. Being on the receiving end of it, but my understanding is you make the application and you can ask for a loan, and the loan usually comes in in a couple of days.

25:53 - The government announces all of these things and says, Oh yeah, it's all done the next day. In reality, you 26:00 - know, the, the officer's off so overwhelmed with the amount of demand, uh, chances are you're probably not going to get the next day payments. So you've go. So the. Micro service companies. We get stuck with sick Bay.

26:17 - You can get followed. You can get universal credits and you can even get loans. Right now if you get a loan, remember it is repayable. There is 0% interest for up to 12 months. I'll talk about loans on another video. And, uh, those loans will be interest free for 12 months and then interest will stop getting paid.

26:40 - And not only will they have to pay back the loan, would you have to pay back the interest as well in due course? So just, just bear that in mind that, um, it's not a completely free ride, if you call it fine. Uh, and I'll again, I'll talk about that. Then, uh, the gut, the government will guarantee that you don't have to do a 27:00 - postal guarantee like you will me have to with a low.

27:03 - So there's no personal guarantee since. Good. It's a good deal. The key thing for me is you've got to really know what the loan is full. Is it really the why thing to do for your business? Now we can have a consultation about that, but just be a bear in mind that, you know, the loans are, um, are repayable and of course there's no account of dividends at all.

27:26 - And, uh, anything, you know, you've had in the last three years with dividends, you get no notification off. You got to know, Hmm. Acknowledgements all from the government. We are just left out in the council. It is a group of people. At the moment, and there's no sense that anyone is getting on this case with the government we've made plays.

27:51 - Uh, but you know, the fallen on dead years on deaf ears. And so, you know, I'm not 28:00 - convinced that we're going to get anything limited companies who work on this basis. So unfortunately that is what the key thing that if you were in business and you're not opposed to your personal service company, are you pricing?

28:14 - Why you already thought, what's going to come next? What's going to come next? You know, could be good or it could be not so good for a while. Are you prepared? Is your business rock solid now is a brilliant time you've gotten, you've covered it all to do. You're furloughed probably. You've got all your sources of income are dried up.

28:34 - Now is the time to get your business ready for the release. When everything goes back to normal. Hopefully it'll be in one or two months or three months, and maybe in six months, maybe in 12 months. You've got to be ready for that. And so what we're doing is training in the next couple of weeks. To make sure that everyone is, is ready and have the affordable about their business and things that we don't normally have time for.

28:58 - Well, you know, business plans. 29:00 - I talked about business plans and business models. Well, let people get along and I'll come and I'll just carry on doing what I'm doing. That could double or they were doing the done proper business. Find them strategy sessions the way we operate. So we're going to get started with some free training next week to help businesses get, uh, get on board with those things.

29:21 - While there is time, we can either watch Netflix or you can improve your business. The, the two probably don't go side by side, right? So, uh, we offering that as a free service to two businesses over the next two weeks. This is going to Silva on micro companies, on personal service companies. And how this coded support system will work for you.

29:44 - Not brilliant. I know, but you know, at least now, you know, or I take as going, wishing you well, taking all the best, goodbye.