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KINGAKNAA

  • Posts: 259
first tax return
« on: April 10, 2008, 05:25:20 pm »
received my first tax return document today..... :o the mind boggles, in two minds about an accountant, aint earned that much this year. Have had a quick read through forum, contacting tax office for help sounds promising. have registered on hmrc website for self assessment but will make a decision nearer to deadline in October.

first query......I run an estate car so what would I be able to claim for, i've read different things, one being a 40p per mile flat rate or claim for percentage of fuel/maintenance/road tax/insurance.

Any help appreciated.
HOWAY THE LADS!!!!

NWH

  • Posts: 16952
Re: first tax return
« Reply #1 on: April 10, 2008, 05:30:56 pm »
Get an accountant and get a van you can claim more for a van as you say it is only used for work,you submit every receipt you have to do with work ie petrol-deisel,clothing the lot.I just hand it in to the accountant and he sorts it all for me,for the sake of about £300 + vat it`s more than worth it as it takes away all the hassle.Get used to paying an accountant from year 1 and then it won`t feel so bad when you get his bill each year,his bill is taxable aswell.

johnny_h

  • Posts: 689
Re: first tax return
« Reply #2 on: April 10, 2008, 05:52:55 pm »
get an accountant worth every penny you spend on him
AUDI VIDE TACE

Tosh

Re: first tax return
« Reply #3 on: April 10, 2008, 06:11:07 pm »
Fellow Geordie,

Don't Flap.

If it's your first year of window cleaning, I strongly suggest that you've turned over less than £15K, which means you should have the short tax return.  If you haven't got the short tax return, phone the tax man and tell him you want one.

The short one is easy.

Get all your receipts together; stuff you've forked out for squeegy rubbers, ladders, Fairy Liquid, scrims, ladders; anything you've spent on the running of your business.

Put them in date order, staple them to an A4 sheet of paper and add them all up.

This is your expenditure!

Add the amount you've made cleaning windows; this is your turnover.

There should be boxes on your forms to put these figures in.  Don't be put off by the forms either; they look complicated, but take your time and read through them and the accompanying notes; most of the boxes will not be applicable to you.

Anyway, the difference between your turnover and expenditure is your profit.

You're only taxed on your profit.  (But don't be daft and go stating that your turnover was £10K and your expenditure was £9K; use a bit of nouse).

I don't know the exact figures, but with regards to your profit, the first £5000 (ish) is free of tax, and then you'll be taxed at 20% for the rest; then some more for NI category 4 contributions.

For example:

Turnover         £10,000
Expenditure:     £4,000

Profit:               £6000

The first £5000(ish) of your profit is free of tax, and you'll get taxed at 20% for the remaining £2000.

Then you'll get charged for your NI contributions on top; and I can't remember the calculation for that; but it's not that much really.

I hope I've helped some; it's more complicated than what I've made it sound, but I hope I've given you a starting point.

Also, some people here are reluctant to give tax advice, especially if it could be deemed as 'tax avoidance'; since everyone's attitude to tax is different and ranges from 'Whiter than white' to 'Dodgier than a NAAFI watch'.  The 'whiter than white' brigade here will spank anyone who they think is pulling a fast one.

However, my own personal attitude towards paying tax is somewhere in the middle; unlike Prince Charles who was recently under a tax investigation for being really dodgy.  I reckon it's the 'people with money' - the rich - who do most of the fiddling, since they can pay for the specialist advice.


Tosh

Re: first tax return
« Reply #4 on: April 10, 2008, 06:14:34 pm »
Oh, and with regards to accountants; some of them are 'dodgy' and will overtly help you to save paying taxes; and others are 'holier than thou'.

If you get an accountant, get one on recommendation from a fellow window cleaner.

You wouldn't want one of those 'holier than thou' ones would you? ;D

paul saunders

  • Posts: 1110
Re: first tax return
« Reply #5 on: April 10, 2008, 06:50:09 pm »
Tosh ............. would you care to check these figures again.
For example:

Turnover         £10,000
Expenditure:     £4,000

Profit:               £6000

The first £5000(ish) of your profit is free of tax, and you'll get taxed at 20% for the remaining £2000.

 ;D ;D ;D
I can remember when waking up stiff in the morning was a good thing.

KINGAKNAA

  • Posts: 259
Re: first tax return
« Reply #6 on: April 10, 2008, 07:12:23 pm »
thanks for the pointers chaps.

tosh you make it sound very easy.... ;D ya nee botha.... ;)

Will get into it soon, sorting all my receipts now... ;)
HOWAY THE LADS!!!!

Tosh

Re: first tax return
« Reply #7 on: April 11, 2008, 09:08:21 am »

The first £5000(ish) of your profit is free of tax, and you'll get taxed at 20% for the remaining £2000.

 ;D ;D ;D

Hey, I'm a Geordie!  :-[

Paul Coleman

Re: first tax return
« Reply #8 on: April 11, 2008, 09:30:11 am »
Tosh ............. would you care to check these figures again.
For example:

Turnover         £10,000
Expenditure:     £4,000

Profit:               £6000

The first £5000(ish) of your profit is free of tax, and you'll get taxed at 20% for the remaining £2000.

There are three types of people in this world:  those who can count and those who can't.

 ;D ;D ;D

matt

Re: first tax return
« Reply #9 on: April 11, 2008, 09:47:44 am »
get a accountant as its been said

40 p per mile, it soon adds up, means you will run your car for free ( infact some on here even make money from the 40 p per mile rule )

pjulk

Re: first tax return
« Reply #10 on: April 12, 2008, 01:36:44 am »
Quote
Tosh ............. would you care to check these figures again.
For example:

Turnover         £10,000
Expenditure:     £4,000

Profit:               £6000

The first £5000(ish) of your profit is free of tax, and you'll get taxed at 20% for the remaining £2000.

Imagine what his tax returns like  ;D

TVCS

  • Posts: 884
Re: first tax return
« Reply #11 on: April 12, 2008, 08:31:38 am »
after buying 2 vans in the last tax year my expenditure is very close to my turnover.
Veni, vidi, vino, splatus.

 (I came, I saw, I drank, I fell over...)

jaykie

Re: first tax return
« Reply #12 on: April 12, 2008, 06:58:33 pm »
Wonder how ill be when i do my 1st tax return next April as my expenses are big before ive made a penny.

£3750 van
£2595 system
£400 poles
£300 ladders
£600 insurances
£200 trad gear
£300 sign writing
£150 business cards, leaflets
£100 clothing

theres more but without going through the reciepts i cant remember.
Going to see accountant next week so go one from the word go.

Chris

Re: first tax return
« Reply #13 on: April 12, 2008, 09:25:10 pm »
It's a no to the accountant from me. Go with what tosh says you are virtually done Jaykie.

*Chris Browne

  • Posts: 863
Re: first tax return
« Reply #14 on: April 12, 2008, 09:43:37 pm »
Get an accountant

jaykie

Re: first tax return
« Reply #15 on: April 12, 2008, 10:00:42 pm »
Booked in next week.

Chris