Business Insight 70 – Personal Tax (blog & vlog)

CPR made us have an official ‘opening’ which involved both the local MP and the leader of the local council (I can’t remember either’s names). We did get good local coverage.

Generally, our business model was showing signs of fatigue; by now we had a fleet of 60 cars and were having to start 12 new recruits every month, just to maintain the size of our salesforce. Even though the employed/car/commission package was sustaining that flow, we weren’t able to recruit the managers who were essential for developing and motivating the new recruits – and suitable management candidates from within were thin on the ground.

There was also another problem: once they (the new salesmen) had proved that they could do the job, the best of them were leaving to join other companies on commission only terms; and thus getting their income gross and not having to pay tax and NI through the PAYE system. We were basically recruiting and training for the entire double glazing industry in the south east of England.

INSIGHT 70:- Even though our package (allowing for the car and basic) was competitive, once the government had had its share, a fantastic week’s income would take a hammering. It was actually quite demotivating for the best of them and in truth, I would probably have left myself.

 

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