MLM Bot watch 57- where the bizniss 'owners' are their own best customers.

[Bluewavescrashing]

Time for a new Fred, huns. We watch bots (people who have signed up to multi level marketing schemes which are thinly veiled pyramid schemes). We expose their lies, in the hope that fewer vulnerable people will be sucked in to buying a fake business. This is not trolling. It's calling them out on their fakery. Welcome, huns.

So the value of her company is £6k. She paid back £192k of her directors loan from 2018 but immediately took out a director’s loan of £208k. Robbing Peter to pay Paul.

Crucially, she also had to pay 17k in tax last year. I’m guessing she paid that using the new director’s loan too. So that’s wiped out the rest of the new director’s loan.

Wow. Sounds like a totes viable bizniss hun.

@JaniceBattersby I think her company is worthless and only not bankrupt because her "loan" hasn't yet caught up with her.

I very much doubt she paid a penny back just took out an additional £16k and did the journal to look like it was repaid. She can't afford to.

Isn’t repaying a DL and immediately taking out another one classed as breakfasting? If HMRC found out there may be trouble ahead.

The company isn’t insolvent. If a company is insolvent and continues to operate regardless, the director could find herself in a very uncomfortable position. Not even aloe gel will relieve such discomfort.

There is certainly 32.5% corporation tax due on that DL. Surely the charade has to end now.

By my calculations thats almost 68k in corporation tax? Oh dear 😀

When it says the company is worth 6k is that 6k worth of stock?

(wish I could find the meme that's a Wendy house built ofaloe cartons)

Companies House accounts rer not always that easy to follow particularly as smaller companies do not have to file very much information but I certainly find it interesting to look at it regularly for all kinds of reasons. If someone could post me the name of the company (I have not read the thread) I can take a look.

Xenia pm’d you.

What is Castle's situation with accounts? I know she has a spin off business too. Wondering what she's earning these days.

Castle’s company accounts to January 2019 page 6 shows blatant bed and breakfasting re directors’ loans - how is that allowed?

The net book value is £6k @Gotmychocolateimgood. However, that’s largely meaningless in a company where there’s essentially only one employee. Because unless there are a load of tangible assets (there aren’t) there’s no ‘business’ to sell. The business is her.

I think from the accounts but I may be wrong that that looks like about £200k coming in and then taking out what is probably a lawful directors' loan but I do not know what happened in other years or what corporation tax is due on any profits.

www.churchill-knight.co.uk/blog/2016/06/what-is-a-director-s-loan-and-how-do-i-get-one/ says "HMRC has strict rules on director’s loans. It is important to note that loans must be repaid within nine months and one day of the company’s year-end. Failure to repay the loan within this timeframe will result in tax implications – at a rate of 32.5% on any outstanding amount."

So that would be why it was paid back in that timescale. It is quite common to take directors' loans like that but obviously the money still remains owed and should be paid back within the 9 months. Those accounts are nearly a year old so Companies House is not always going to give the most up to date position. My link goes on to say "We advise that you do not take out a director’s loan immediately after repaying another. HMRC may see this as a tax avoidance tactic called ‘bed and breakfasting’. HMRC has rules to counteract this.,"

I have no involvement in this or the thread - just putting off starting work..... so any distraction is good.

Does that mean that the bot who allegedly earned £1k in February is earning more than Yawn?A look at her fb and it doesn’t look to be all singing and dancing Aloe Aloe to me.

HMRC monitor companies with overdrawn DL accounts. If the account is overdrawn on a regular basis they may decide that the money is a salary rather than a loan which leads to Income Tax and NI being taxable on the outstanding sum. Oh what fun.

So what's the £10k of payments Yawn is owed (if I've read this right)?

I'm presuming it's not real tangible money as I can't think of any situation where she could conceivably be owed anything ....well, other than maybe £3.64 for a miniature hand gel when a victim didn't have the right money on them 😉

Please could someone who understands accounts better than I do explain whether Yawn’s accounts give any indication of the salary she has drawn from the business?

I am no accountant but there has been a major drop in cash at bank re Yawn see 2016 where there is over £100k.
I have no debt and we are in 3 bed semi but there is still a lot of running costs, the mind boggles at the cost of running the Thatch etc

But, in theory, could she have drawn a £5k monthly salary all year and it not show in these accounts? I’m not saying it’s likely, just trying to understand what they actually tell us.

Nurse says What a lovely message to wake up to - looking forward to welcoming my new team member soon Eeeeeek love the fact I can work with friends. Today’s a very good day.

Does this mean she's actually recruited someone, finally? Surely she would tag them?

As someone had said above accounts filed on Companies House don’t show the full picture which is often the case with small companies.

@Bluewavescrashing let’s hope that whoever she’s recruited sees through the BS and has the good sense to return her business in a box to Head Office within fourteen days so she can get her £199 back.

I think she wouldn’t want to tag the new teamie in the post because then people might make contact to give this poor person a heads-up