MLM Bot Watch 52: The continuing saga

[Jasmin82]

Continuing on from previous threads.
BBC documentary:
www.bbc.co.uk/programmes/p076n2hg

Sheesh that's some big figures in the castle company accounts: £400k directors loan!?

I think you're right on the amount owning though @SnoogyWoo

So Castle's accounts are for last year and would include the $120K bonus cheque?

Those for this year will be painful...

Yes they are up to the end of January 2019. Looks to be down about £140k from the previous year. Like you say this year it will be a blood bath with such a small cheque and I would think a lower monthly income.

Oh dear, never mind...

Am interested to see that Neals Yard and The Body Shop are popping up now. I'm the same, in that I boycott those who have an MLM arm. Was invited to a BS at home party recently. I was surprised to see how little they knew about what an MLM is, most had never heard of it and saw little harm in going along to a party to buy some white musk, feeding on nostalgia days of this and fuzzy peach....

The thread in AIBU at the moment on the Body Shop epitomises this attitude. There are a number of posters who see BSatH as ok compared with Younique etc (because they've been doing parties for decades) and it's great that lovely local reps do hefty discounts. That said several other posters (probably some from this thread...) are saying they don't shop there because of the MLM arm.

Someone on Weight Loss Chat has started a new thread extolling the benefits of Juice Plus.....🙄

Aaaaaaand it's gone! That lasted all of 2 minutes!!

£140k down from the year before and that's before this years small cheque.

Might be why she came scurrying back from Spain as soon as she got her cheque at the rally. Was probably hoping her cheque was going to be larger, much larger. I think she was expecting at least £100k without knowing about the rule change to screw the level 1's and 2's over in favour of the level 3's. Was likely hoping for much bigger though, she paid good money to join that guru and his high earner team or whatever it is. Probably thinks that if she asks the universe she shall receive.

Her house is still for sale. Of course her accounts don't show how much product she bought herself. Given what Bruv posted, it's a hell of a lot.

I’m sure they will find a way to weasel out of paying back that loan, the entitled bunch that they are.

Nurse is having an Open Afternoon about her business opportunity

She’s selling it well (as usual)

‘Where is the harm in having a look?’

Hope she has room for everyone.

She can try, but if she doesn't her company will go into insolvency. HMRC will then come knocking for their tax money, and they won't go away until they get it.

It's the same with all the top forever bots, those who were earning lots and now aren't. They all took out huge directors loans, i believe it's something to do with tax. They assumed they would be able to pay them back each year but then the money dried up. Tax bill bot and the other tax bill bot got caught out like that.

I find the accounts confusing, but i'm guessing we will see a few more not be able to pay back their directors loans in the coming years.

Oh god nurse. Her open evenings over wine and the online presentations in her PJ's were delivered to an audience of zero. If people aren't pitching up when there's free wine or engaging in a 'no pressure' live then I can't see how a visit to Brum and the promise of a free biscuit is going to entice the hordes

Iron Bot’s accounts and subsequent insolvency are a lesson in why director’s loans that rely on future earnings are a bad idea. I have a feeling they’ve had to sell their house as the demands for repayment aren’t going away.

Correction- her house went to auction last month. Her poor kids, it’s so incredibly sad. Clearly this hasn’t stopped her continuing to sell Juice Plus though.

Nurse's 'open afternoon' is 1.30 to 2.30 on a Thursday afternoon. One hour is not an open afternoon!

How many people can make a time like that anyway??

Poor kids, yet she is still seeking it ad it will give you financial freedom.

This is what will happen to other bots with the huge loans. Sooner or later it will catch up with them.

£400k on Castles loan is the biggest I've seen, doubt she is going to make that this year or even come close. Yawn's is £190k. Those are scary figures.

Not to mention the expenses. We've seen for ourselves the mindblowing amount of products they buy. How much product are the top boys buying each year just to qualify? They can't write it off as expenses.

Doesn't Uber have a £750k Directors loan?

I find it terrifiying having a few hundred quid on a credit card let alone having to deal with that.

Is anyone able to explain the whole directors loan.

My understanding, is that the individual 'borrows' from their limited company, and if they dont pay it back 9 days after the end of their tax year it becomes taxable?

Can they roll this over, or is the tax payable there and then?

Either way, running a massively leveraged business on potential future growth is not that clever. These are the 'successful' ones...

How is this method of selling legal?...

I thought the loans have to be repaid the following tax year. How do they keep carrying them over? Not sure how Director’s Loans work but those are scary amounts!

Sorry I meant 9 months after their tax year end

The directors loan doesn't have to be paid back but it will be taxabale as dividends if they don't pay it back.

Sorry I meant corporation tax not dividends

So a tax bill of £76,000 on top of all the other expenses that she is incurring whilst loving this facade.

How she sleeps at night is beyond me, I’d be a wreck.