[weetot]

just do what i do fill in the under 15000 form and say you earn 4000 you pay no tax and no national insurance, i put on gross then outgoings  then profit bobs your uncle job done no accountant. No tax

Bumper that works out at £76.92p per week.............................................................................right,..erm

[bumper]

you can say i work 45 weeks a  year,  and prisons are all full so might get away with Suspended sentence,  if they can be bothered to have Surveillance on 1 small fry urchin 

[R W C™]

You can always spot the newbies to this forum when they havent already read any of bumpers posts...
Bumper you are a legend  I love your posts....

[Glen Bullivant]

You can always spot the newbies to this forum when they havent already read any of bumpers posts...
Bumper you are a legend  I love your posts....

just did, bumper, you bloody wind up merchant. Hook, line and sinker.

[bumper]

You can always spot the newbies to this forum when they havent already read any of bumpers posts...
Bumper you are a legend  I love your posts....

just did, bumper, you bloody wind up merchant. Hook, line and sinker



Whos winding who up i dornt tell pokies only to taxman and the person who says have you done anywork this week bumper  errrrr   no   sign here then,ohh i lost my wallet any chance of a Crisis Loan, you no the rules bumper you already had your
maximum.

[Dean Taberner]

Somethings not right there,

He must have missed your tax free allowance.

Dean

[e newlands]

bumper you are the man

just go bust pocket the lot and knock the accountant he sounds a bit of a mug

let the tax man swivel

then start up again and have a nice holiday on the government

[Sunshine/Cleaning]

Why is it his accountants fault. If he didn't get his books to them on time they cant process them before the deadline. If his figures are correct then he owes the amount they say.

[davids3511]

It's obviously spent and not 'profit' in the bank. If he paid himself a wage he would pay weekly his tax. Plus I thought you could only take a dividend if you were LTD. Even then you pay tax on the company profit as well as your wage.

You don't pay tax on both your wage and the company profit. You pay 20% on the profit and you pay no income tax on that unless you go over about 39K.

[Sunshine/Cleaning]

It's obviously spent and not 'profit' in the bank. If he paid himself a wage he would pay weekly his tax. Plus I thought you could only take a dividend if you were LTD. Even then you pay tax on the company profit as well as your wage.

You don't pay tax on both your wage and the company profit. You pay 20% on the profit and you pay no income tax on that unless you go over about 39K.

How can an individual who gets a wage from his own company not pay income tax?

[magic1]

you pay your self £450 a month as a director. which is no tax and n.i. Your wage is taken off your profit. This brings your tax liable down.  You then take dividends which are tax at 22%. Assuming you are ltd.

[Paul Coleman]

Has your accountant factored in your 6.7K allowance ??


so 21 k profit less tax allowance = 14.3 ( approx ) ??

Darran

He said in the first post that the £21k was after expenses and allowance.

Indeed he did.  That's the main reason why my very rough calculation was so far out.  I should have gone to Specsavers.

[davids3511]

I think you might be right! Why folk dont think about saving it or even paying it weekly up front I dont know.

Because often people come into window cleaning when they are on their arses financially. It's all very well to tell them "save 50% for tax and expenses" when they can't eat or pay the mortgage.

[Paul Coleman]

I think you might be right! Why folk dont think about saving it or even paying it weekly up front I dont know.

Because often people come into window cleaning when they are on their arses financially. It's all very well to tell them "save 50% for tax and expenses" when they can't eat or pay the mortgage.

What has made things trickier in more recent years is the payment on account system which seems to create a heavier tax burden for the year one tax bill.  Not certain but it seems that you need to find one and a half years tax after working a year.
It's not very encouraging for new businesses just starting up - whatever field they are in.  I suppose you have a bit of money behind you and can run at a small paper loss in year one then that might help but would be pretty pointless because you would have the money to pay the tax anyway.

[Dave Willis]

It 's the double whammy that everyone needs to be aware of. Not many realise the extra Ni payment you have to make either.

[Sunshine/Cleaning]

I think you might be right! Why folk dont think about saving it or even paying it weekly up front I dont know.

Because often people come into window cleaning when they are on their arses financially. It's all very well to tell them "save 50% for tax and expenses" when they can't eat or pay the mortgage.

If they had a PAYE job they would be deducted at source, they would have to live off that and prob get Tax credits to top up. Same for self employed. They are often blinded by turnover thinking it is income.

I think you might be right! Why folk dont think about saving it or even paying it weekly up front I dont know.

Because often people come into window cleaning when they are on their arses financially. It's all very well to tell them "save 50% for tax and expenses" when they can't eat or pay the mortgage.

What has made things trickier in more recent years is the payment on account system which seems to create a heavier tax burden for the year one tax bill. Not certain but it seems that you need to find one and a half years tax after working a year.It's not very encouraging for new businesses just starting up - whatever field they are in. I suppose you have a bit of money behind you and can run at a small paper loss in year one then that might help but would be pretty pointless because you would have the money to pay the tax anyway.

If you start work in April 08 you dont pay any tax till End of Jan 10 that is a full 20 months. Then you pay 18 months worth of tax, hardly unfair.

[Glen Bullivant]

true stuart but there is no 'tax on account' for PAYE. you pay the right amount of tax on your weeks/months pay and thats it.

I think its just the difficulty in moving from not having to worry about tax cos you never see it to having to pay huge bills!

[Sunshine/Cleaning]

true stuart but there is no 'tax on account' for PAYE. you pay the right amount of tax on your weeks/months pay and thats it.

I think its just the difficulty in moving from not having to worry about tax cos you never see it to having to pay huge bills!

True it's a huge leap, a lot bigger than many appreciate. I'm glad I started while I was living with my parents.
One of the reasons I encourage new startups to start to pay the tax man weekly from week one is that it more closely reflects PAYE. Even if it is only £50 out of £500 its a start, you get into the habit of the money going out and you cant 'borrow' it whenever you want.
I've paid weekly for a few years now. I have a good idea from my accountant what my liability will be and split it accordingly.

[Joe Lauzon]

Here is a nice little tool for the LTD versus sole trader debate...

http://www.newmanandpartners.co.uk/resources/tax_centre/tax_calculators/incorporation.php


I'm a one man band and limited.  Get yourself a good accountant and its very smooth. 

[windowswashed]

You could always set up a direct debit like I have with the tax man every month so any small differences at the end of the tax year are paid or refunded annually.