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?

Believe me - we've looked at everything available.

The max. support we can get is to both furlough ourselves and claim 80% of our salaries paid to us as Directors which amounts to £1100.

We didn't become limited companies for any kind of tax benefit but because our previous clientele demanded it.

We've cut everything - the only things we have going out are debts, mortgage, council tax, food, insurance, utilities and Netflix.

Netflix is only a small amount each month and we've kept it as we've cut Sky & tv licence so we don't have any other access to TV.

We've both set up new businesses over lockdown and worked our arses off but DH's income is dependent on face to face training (it doesn't translate to the kind of training that can be done on Zoom) and my income from my new business is completely inconsistent

We've already told everyone we can't do Christmas at all this year

We've cut things I thought I would never, ever cut like pet insurance 

Agree a time to pay arrangement with HMRC if you won't be able to pay in January. I think you can apply online.

Eligible for UC?

@StatisticalSense

I would hope that this would be a £10,000 fine type of thing as it is essentially a business refusing to shut. You cannot expect customers (who will look at the service provider for advice) to continue to receive a service that is against the law and puts them at risk of being personally fined. He will have to look at either training outside or over zoom as every other personal trainer has done.

He is a specialist personal trainer - it's not possible to do strongman training over Zoom.

He can't offer boot camps outside because the Council won't allow it.

I'm afraid we have to risk the £10k fine because the alternative is we lose our house and can't eat.

I really feel for you, you're in a shit position and you have to do what you have to do. I'm pretty sure a lot of self employed are going to continue trading this time, the alternative isn't really an option.

What about a gazebo in the garden?

@user153675313578

Agree a time to pay arrangement with HMRC if you won't be able to pay in January. I think you can apply online.

Eligible for UC?

No, we tried UC and applied for it. We were told our income on furlough (£1100) was too much to qualify.

Which I understand but given that it doesn't even pay the mortgage doesn't help!

We had been sensible and had £20k savings at the start of this year. We've started brand new businesses as our old employment was no longer viable. We've applied for all the support we can get.

We have no other choice now except break the rules vs. default on our mortgage and starve this month.

Do you have any friends with open space - a paddock or large garden in the country - that he could use?

Definitely talk to your mortgage provider ? Can you remortgage - do you have loads of equity ?

Zero judgement from me as well, you have to eat

@Pertella

What about a gazebo in the garden?

This is possible (except we don't have money for a gazebo!) but it would be breaking the rules as much as the open garage would be

We take all precautions - DH wears a mask and stays 2m away. Only one person is on site at a time. We clean all equipment thoroughly between clients and fully ventilate the area with fresh air via the garage door. The chances of anyone catching anything are minimal.

But yes...we are worried about a £10k fine.

But it's definite bankruptcy/losing our home vs. a risk of bankruptcy/losing our home.

My PT is hosing the local park, they had to pay for insurance but council slowed it. Can he look into insurance?

Please excuse the spelling! Just is looking into PL insurance to work outside.

@LaurieFairyCake

Definitely talk to your mortgage provider ? Can you remortgage - do you have loads of equity ?

Zero judgement from me as well, you have to eat

We remortgaged over the summer as we'd gone on to variable which was much more expensive. We're on a 5 year fixed now.

We have very little equity as this is our first property and we only bought it 2 years ago. Prices have dropped slightly where we are.

We are stuck with our current provider anyway as our credit file is now trash...

@AriettyHomily

Please excuse the spelling! Just is looking into PL insurance to work outside.

The council won't allow it at all. We tried!

@wheresmymojo
Maybe he'll have to look at more general PT opportunities then. Additionally don't lie about not being limited companies for tax purposes because clearly if your mortgage is more than 80% of your salaries you weren't living off your salaries but rather dividends (which would be for tax purposes).

No judgement here. Good luck!

Do you not have some of the £20k left? If you’ve had a 6 month mortgage holiday then you’ve only paid 4/5 months mortgage ? Or has the £12k gone on bills? If you were on mortgage holiday and getting the £1100 that would have covered the remaining outgoings? Not judging, but £20k is a lot of savings. I feel so bad for you both, terrible time for self employed people.

@wheresmymojo it will invalidate his insurance.
All you need is a client to have an accident and you’re fucked.
Don’t risk it. Find a different park that allows it, there’s several where I live. Just do a search for others providing a similar service and see where they do it.

Also the self employment scheme? You mention the 80% but there was the second grant of 70% and the one next month is 40%. If £1100 is 80% of your income how did you pay your £1600 mortgage and bills prior to lockdown? Or am I missing something?

[quote ImMoana]@wheresmymojo it will invalidate his insurance.
All you need is a client to have an accident and you’re fucked.
Don’t risk it. Find a different park that allows it, there’s several where I live. Just do a search for others providing a similar service and see where they do it.[/quote]
Good point re insurance

@wheresmymojo have you at least applied for the council tax reduction?
We've done that and it's a godsend, only pay the water charge now rather than have to find an extra 200 a month.

@StatisticalSense you seriously need to stop.

Not only would he be breaking rules but he would be going against his insurance too. If anything happens in these one to ones - a client could try and sue and he wouldn’t have a leg to stand on.

I feel for you, but it takes one person to grass him up. I’ve already seen it happen to an instructor!

Op I’m not judging but one thing you need to think about is your husbands insurance - if a client gets an injury at a time when he’s not supposed to be working there’s a chance the insurance wouldn’t pay out - that could leave you being sued & completely screwed.

Contact your local Citizens Advice. They will assist you negotiating with mortgage company etc., and advise you as to other assistance you are eligible for

Talk to them about being unable to use your local open spaces - this seems to be exactly the sort of thing they might take up as a local and national campaign. That will push it up the political agenda, hopefully quickly enough.

All the best.

Petportraits if you're limited some of your income is dividents and furlough only pays the salary element.
You also don't get the salf employed grant, you get the same furlough scheme as other salaried people as you effectively employ yourself.

I appreciate you saying he can’t do Zoom, but these are times where if his career can’t pay he’s going to have to look at other work if you’re that desperately short.