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.

As these were last year’s accounts, maybe the £10K owed to her was the promise of a yoga mat that didn’t materialise?

As someone who has absolutely no idea what this thread is about once I’ve started reading, it’s really making me chuckle.

@Cacacoisfarraige that makes sense, thank you

Banging, UK accounts are not particularly helpful in disclosing everything as the rules changed a few years to mean less has to go into published accounts - in fact it is so little that a residents association I chaired insisted our accountant added a note to residents setting out certain payments by category as the published accounts would have been so unhelpful (and yet were lawful). The accounts say 2 employees so it is likely wages perhaps under the singl person tax allowance are paid out to ensure an NI contribution is made for later state pension as is commonly done.

In the UK large PLCs even have to disclose the salary of the highest paid employee or director I think but not small companies.

HMRC have a computer system called Connect which looks at records such as companies house and the land registry automatically I believe so they can have any anomalies thrown upo eg person X has a £1m house and has only ever earned a pittance etc.

You won’t be able to see the salary, it doesn’t work like that. You only get snippets of information with small business filed accounts.

You need to think of it this way, her limited company is an entity in itself, it is not Yawn, she just works for that company. It has money owed to it called debtors (ie. customers, Yawns directors loan, HMRC refunds etc) and money it owes to others called creditors (ie. payment to suppliers, bank loans etc). The creditors is split into long term liabilities (bank loans) and liabilities that need to be paid back within 12 months (suppliers, directors loans). Then you have cash at bank which is a snapshot of the money in the bank at the end of the financial period.

From this we can ascertain that she has increased her directors loan from £189,175 to £205,180. This is obviously not good, means things have got worse and will have tax implications.

Tangible assets has reduced from £7885 to £6621 which I think will be physical stock.

The most interesting this is if you look back from the 1st accounts in 2014 to the latest, it gives a very simplistic view of the whole car crash…

2014 Directors loan: £9861, Cash at bank: £28,203
2015 Directors loan: £0, Cash at bank: £81,160
2016 Directors loan: £109,844, Cash at bank: £100,992, Dividend was paid to Directors of £100,000
2017 Directors loan: £188,377, Cash at bank: £12,359
2018 Directors loan: £189,175, Cash at bank: £3903
2019 Directors loan: £205,180, Cash at bank: £5306

If you look at shareholders funds it gives a snapshot of how much the directors would receive if the company was liquidated on that date. Shows the rise and fall around the year 2016 nicely.…

2014 £24,510
2015 £55,001
2016 £152,094
2017 £84,906
2018 £31,236
2019 £2 (she would receive £2 value only when the directors loan has been paid back, eek. She is worth approx -£200,000)

We can only speculate on the monthly earnings but the sensible thing to do to limit tax is to pay her and her husband £719 each per month which keeps you under the tax threshold. No mention of dividends has been made since 2016 so looks like directors loans have topped up the rest plus Mr Yawn having a J.O.B.

Things are definitely in a bad place at Yawn towers, time is rapidly running out.

@Pentium85 we aim to amuse and educate! Do you know anyone who has been sucked into an MLM cult? It’s a murky world.

Massively helpful, thank you!

Thank you @SnoogyWoo

So if she had quit in 2016 she could have made a tidy sum, then moved on to something else (a legitimate business or a J. O. B) and done OK out of it.

It's possible she will lose her house over this. Aren't her children going to uni soon? She must be bricking it.

Thank you @SnoogyWoo - it’s not a pretty picture is it? Debt free, my arse!

Her only option at this point is that business improves again to 2015/16 levels. That is literally all she can do, hope it improves. Nothing she does will improve her situation as she has no real control over her own business.

2016 she would of come out with about £40k by the looks after the directors loan was paid off.

You can see what happened, they were earning big money in 2016 so paid themselves a large dividend of £100k (from the cheque I presume) and then took out a directors loan of a similar amount intending to pay it off with the next big cheque which never happened. Fake it till you make it went into overdrive using the dividend and directors loan but it never got back to the heights of 2016. Things went down each year after that and they can’t dig themselves out the hole which started in 2016.

When you consider those cold hard figures it’s quite overwhelming.
I can see how when things hit their peak and the big cheques were rolling in that they all presumed that it was a given that it would continue in the same way.
Imagine the terror they must all have felt the following year when the cheques dropped and then the following year when the cheques for many actually stopped.
I do wonder what they did with all these directors loans though? Was it all just literally wanked on crap?

If they had any sense they’d have put it all into the house to minimise the mortgage

If they end up with a lot of equity in the house at the end of their FL ‘journey’, that would be something at least

I wonder what the minions think when they notice the cheque in the banner at the top of Yawn’s social media is from 4 years ago?

There is a tax liability of £17k, so assuming that was corporation tax; it does imply the business did make some profit (alternatively; it could be income tax from the salary that mr and Mrs Yawn take out

I can’t see there being much proof of the £209k ‘provision for rewarding employees, I wonder how the accountant have decided that this is a true value ...’

It can’t continue; the longer the provision gets paid, the more unreal it becomes.

I see there are a couple of options.

The company could pay yawn the £209k pot they have as salary. This would actually be a little over £100k/£110k in her pocket after employers ni, employees ni and income tax.
Yawn could then pay this straight back into the company; leaving her with a director’s loan of £80k.

This is a problem... this would leave the company £110k down in cash, and would possibly lead to insolvency as would have negative assets, unless Yawn Injects her own money into the company.

Option two; company could release the provision and write off the directors loan, in that way the company would still be solvent and not have negative assets (and mean liquidation).

Yawn would have to pay tax on the director’s loan - approx £70k. In addition; the companies profits would increase £209k as they have written off the provision; so this would generate corporation tax for the company (approx £40k). This is a bit of a problem as the company doesn’t really have cash to pay it.

Yawn could pay back the directors loan which would solve lots...but this assumes she has a spare £189k knocking around.

Yawn could do a JL/tax bot move, and let the company build up their debt to the tax; then liquidate, and get some agreement that she only has to pay a fraction of her debt.

The only reason that I can see (please feel free to correct me if I’m wrong) or showing this directors loan/huge provision offsetting each other is deferment of tax payment. This can’t last forever. Overall: this business is unsustainable, and the apparent success is not real.

Even if they had no mortgage they'd have trouble affording the upkeep and maintenance of that house on just Mr Yawns wages.

No wonder all the "renovation" has been DIY tittiifying ...minimal expenditure.

I've said it before but that house will be on the market soon, the excuse being "we want to be closer to town for the teenagers, and we want someone else to enjoy it whilst we move into our next project". The new house will be much smaller and cheaper but they will buy it because they "just fell in love with it"

Christ. It’s all a bit grim isn’t it. She must be frantic. So silly to take all that money out of the business in 2016 and leave no real float. She must have been spending stupid money.

I think micro-assessments of Yawn's finances from the (rather grim) figures from he biznis are good only for that- assessing how badly the botting side of things are, and the health of that particular 'venture'.

In terms of overall family finances, we have no idea of what the contributions from Mr Yawn's secret J.O.B. or from his recently sadly departed mother are.

For all we know, the Tatch is mortgage-free and they have money left over to cover liabilities.

What is certain, though, is that this is not thanks to FLP but Yawn will never admit this, because she will continue to try to suck money out of people on the back of her 'success'.

Living the dream? I know everyone’s financial affairs are different but I am glad we made the choices we did, despite losing money in the financial crash.
Many people including bots are in for a bumpy ride as they get older. They will also have to deal with the onslaught of AI and automation.
Even if the bots do try to look for a J.O.B are they aware that Many CVs are read by computer software and not by humans. I remember trying to format my cv and it gave some strange emails as in finance information security and data protection is vital but I would get emails about jobs in cyber security

I get the impression Uber has been more canny with her money.

She and her new DH have bought a property that they're doing up and will be renting out and are also looking at holiday rentals in Devon. Her posts about the Devon holiday home imply that it's a family getaway, whenever the mood takes them but it's going to be another source of income.

BTW ...re: the info in my post .....let's just say that people should talk a bit more quietly when they're discussing their private affairs in public

@Twentytwentyhindsight you are correct in that we don’t know the full picture, but it if things are all rosy in other departments it would make no sense to keep rolling over a large directors loan and a 32.5% tax bill.

Just seen a new FL bot tactic to get their magazines into waiting rooms instead of gossip mags following Caroline Flack’s death.
It’s on the fb profile of Yawn’s downline who earned £1k in February.
There’s a good Freudian slip in there...“some health magazines for your weighting room”.