Breaking rules to pay the bills...

[wheresmymojo]

We've stuck to the rules all the way through however we're going to have to break the rules in this lockdown because the alternative is that we can't pay our mortgage/bills/for food.

Just wondering if anyone else is in the same position?

[hamstersarse]

@Rainyday26

How about offering online/facebook live stretch classes ? Kettlercise/ kettle bell training ? Food & nutrition advice ? Motivation classes ? That way he can reach a much wider audience and either do it as a pay per session or as a monthly fee which gets you as many drop in sessions as you like. With fb live ‘members’ can replay whenever they like which goes down really well.

Jesus

[Rainyday26]

How about offering online/facebook live stretch classes ? Kettlercise/ kettle bell training ? Food & nutrition advice ? Motivation classes ? That way he can reach a much wider audience and either do it as a pay per session or as a monthly fee which gets you as many drop in sessions as you like. With fb live ‘members’ can replay whenever they like which goes down really well.

[Mumoftwoinprimary]

Op - there appears to be something called “time to pay” for corporation tax. www.gov.uk/difficulties-paying-hmrc

It seems to me that you are effectively solvent as a “going concern” - it is just that you need time for the world to come out of lockdown. So I’d hope that you would qualify as you seem to be exactly the sort of people that time to pay is aimed at.

How long do you have left on your car finance? Are either of them near the end?

Is your business also effected by Covid? (Sorry - I wasn’t quite sure.) Is there any of it that your husband can help you with? I assume that it is quite specialised as you are a high earner but even if it is just some of the admin then that could mean that you are not working yourself into the ground whilst he is stressing himself into the ground through not being able to work.

[PinkSparklyPussyCat]

It's shit. But your situation as awful as it is, does not justify breaking the lockdown.

It does, they could end up homeless

There is no justification for breaking the lockdown.

There is. If I stood to lose everything too right I'd break lockdown as I'm sure you would in real life.

[nancy75]

The op & her husband are not self employed, they are employees of their LTD company so not eligible for the self employment grants. They can (and she’s said have) claim furlough but that is only 80% of what they put through as PAYE & doesn’t include money from dividends.
I think the main lifeline here is getting on to HMRC & finding out about delaying payment of corporation tax.

[caringcarer]

I just switched on TV and they talking about more help for self employed and furlough extension.

[Posidonas]

@zoemum2006

The ignorance in this thread about how businesses are run is depressing.

When you’re a limited company you pay corporation tax on all your profits. You also pay dividend tax on the money you take from your company (except for the tax free allowance via PAYE).

I also pay VAT.

There is no tax benefit and a lot of risk (no holiday pay, no sick pay).

But finances are arranged like this for flexibility. To absorb the ups and downs of business life (sometimes clients don’t pay on time etc. So you’d be mad to commit to a high monthly salary... much better to take dividends when finances allow for it).

Hmmm talking about ignorance, unless you aren’t VAT registered you don’t pay VAT, you just act as a collector on behalf of the government. It is not a cost to you.

Also for those who think owner managed Ltd company = self employed, get your facts straight, there is a huge difference

[YorkshirePuddingsGreatestFan]

I'll be breaking them.

I'm extremely clinically vulnerable and had to shield last time. I did five months on ESA which caused financial difficulty even though I had a mortgage holiday.

It's been advised if you're extremely clinically vulnerable that you stay off work if you can't work from home.

I cannot afford to live on ESA and pay the mortgage, so I'll have to ignore the advice and go to work.

[megletthesecond]

This seems to be a real problem with outdoor exercise. Our local council wouldn't allow our sports centre to do outdoor classes. But there's two non socially distanced bootcamp classes who do have permission.

One to one training in a park is pretty safe. And I'm speaking as someone who hasn't risked a restaurant or cafe this year. If it rains they won't melt.

[murmurgam]

@wheresmymojo
I've just seen something on the news about payment holidays for credit cards, personal loans and car finance. Worth investigating. It specifically mentioned being able to apply for a second deferral even if you had one already.

[Delatron]

I would focus on finding an outdoor area he can train on. Trainers are using empty car parks round here? If business/pubs are closed.
Or recreation grounds? There’s no outdoor sport at the moment.
There must be somewhere.
I’d be tempted to use the park. I don’t think the council will check and you are allowed to exercise outside with one other person..

I’d relook at Zoom too. I know you said he uses equipment but could he do a HIIT/ stretch session without equipment? These are so popular at the moment (I’m a PT). I’ve also got a few online corporate classes. Businesses are desperate to look after employees mental health and physical wellbeing at the mo.

So approach some companies and offer a no equipment exercise/stretch session?

I’ve had to be very creative as I normally use equipment. I’ve had people using bottled water/cans for weights! Or see if clients will invest in hand weights at home? Mine were happy to..

[IcedLimes]

I read this morning that it's always better to speak to the mortgage lender early and they should be understanding in these times and come to an arrangement

[Haenow]

Some people are utter arseholes. I’m sorry. I worry that the risk of the £10k fine would be utterly devastating for you. Please do explore the option of outside. If you’re going to get into hot water, I reckon it’d be less hot water if a public space rather than your home.
You’ve had some good advice so hopefully it’ll help. Keep open minded about all the options and ignore the ignorant people.

[ForTheLoveOfHalloween]

Why can't he to 121 training outside at a park? No need to do it inside.

[Namechanger0800]

I totally feel for you - the situation is absolutely awful. I think you should think about a debt management plan - look on mse for recommendations but essentially they renegotiate your unsecured debt and you pay far less. It'll scupper your credit report but that's prob the least of your worries at the moment. The car loans alone are tbh very silly amounts to have x2 of.

I also know why you are considering breaching lockdown in this way but my main concern would be if a client has an injury - your insurance will not pay out and it's the sort of thing that could ruin you financially and your business forever, if not gave criminal charges

[Pumpertrumper]

The one think I enjoy about covid is the a lot of deadbeat dads who were not actually declaring their income to dodge paying proper maintenance will have had the tables turn.

I don’t have a maintenance paying ex but it makes me glad for the women who do!

I think the rules are important but people also have to get by. I woke up at 3am with mastitis feeling horrific. I’m 8 weeks pregnant and also have a teething 8 month old. My DM is now at my house caring for DS whilst I cry in bed and feel sorry for myself.

I’m not sorry.

[majesticallyawkward]

[quote SoloMummy]@wheresmymojo

Let's be Frank here. Your situation is unsustainable.
You're probably going to need to look at selling your home or end up with repossession and 10000 fine for breaking the lockdown.

So either find an outdoor space, or another alternative.

It's shit. But your situation as awful as it is, does not justify breaking the lockdown.

There is no justification for breaking the lockdown.

You need to think out of the box.

Perhaps start to sell things off too. Lol for anything you can do wfh.

Start the ball rolling with putting it up For sale. Better to rent than be repossessed and ladled with the bad credit. If you sell now people are more likely to buy given the stamp duty waiver that ends in March and there's still time for it to go through.[/quote]
If OP, or anyone else, can't pay the mortgage and bills how are they going to pay rent? Selling up isn't a magical fix, you are still homeless and have bad credit/CCJs etc if you can't pay rent and who is to say that selling a house would even pay off a mortgage? They could end up with debt and nothing to show for it.

Unless OP is sitting on some extremely valuable items it's unlikely selling their things would keep them going very long.

It's all well and good judging when you have an income but the self employed, and particularly those who are new like the OPs DH have very little in the way of help through lockdowns.

[MushMonster]

In the park, I had forgotten about that! There were people joining their usual classes in the parks around here, during the easing of the first lockdown. Not sure if that is allowed for this lockdown though, you will have to ask.
The council gave them the tennis playing area here.

[MushMonster]

Look at all the options, benefit and mortgages holidays and so on.
Also, online. Almost anything can be done online.
My daughter is doing online piano lessons, and her teacher has not lost any income throughout all these from us at all. She had all her lessons.
You can use the screen on TVs these days, and skype, and it is very close to be in person, to be honest. And if you have to lend equipment, that you clean and then they send back cleaned, it is not that bad.
I think the furlough/ self employed scheme applies to you. It is based on your last year's earnings, so have a look to that properly. Just apply for it, and see what they say for sure, not just "I think..."

[Keep1984fiction]

If he can work outside as pubs and other shops which are not essential are going to be shut could he approach any of those type places and see if he can work on car park.

[chunkyrun]

Are you being for real? Just imagine you were at risk of losing all your worldly possessions, losing absolutely everything you had ever worked for, by working there's a chance you won't be facing homelessness. Would you willingly hand your house keys over to the mortgage company because you didn't want to break the "rules"? I'll be honest, I'd walk over hot coals whilst breaking every single rule in the book to avoid that.


^^ wholeheartedly agree, can't believe some of the responses I've read on here

[murmurgam]

Yes a universal benefit. For all.

I'm not sure a universal benefit is going to help if outgoings are 5k a month.

[Cyw2018]

Who have you spoken to at they council regarding using the park?

Contact your town councillor, county councillor, county council cabinet member for commerce or leisure or health (whatever they may be called and whoever may relevent to your cause), and your MP. Cc them all into one email/letter and cc the local newspaper in as well.

[MaxNormal]

@Poniesbest that 50K cap was a disgrace. I can't imagine how badly businesses in affected sectors must be struggling now.
How does this government expect someone to last a year or more with zero income? Living in the SE with a mortgage and a family means it's hardly a massive income.

[bellinisurge]

Just after the last lockdown I saw a gym in Central Manchester having a class on the pavement outside.
Can your dh do zoom classes from the garage?