[gavin pedley]

I have read a few posts on here about tax etc.

What i would like to know though is what is recommended to put aside each month for tax?

I have read somewhere that it is 20% if so should i then be putting aside 20% of what ever i earn each month?

I want to make sure when a bill finally comes i am not up sh*t creak!

[darren clarke]

20% of your turn over each month, as this should give you enough to pay what they ask for, plus if any thing left nice little bonus

[gavin pedley]

Thanks so i did read right then. i will start doing that from now on thanks Darren

[darren clarke]

what a lot do is say sod it and spend it,  when bill arrives think the tax man will give them time to pay,  he doesnt as u should already have it

[gavin pedley]

Yes i was just reading a post on here to that effect. i am most defiantly not going to be that stupid. I want to know i have enough saved to pay it as soon as it comes in and not have to worry.

[Dave Willis]

If it's your first year watch out. You'll pay tax at the end of the year plus tax for half of the following year. Payment on account they call it.

also your ni contributions will seem amazingly low after coming out of employment. At the end of the tax year you will also have to pay a percentage of your earnings in additional ni contributions.

[dazmond]

i put 20% away every month of anything i earn so im covered and not scrambling about for it like squeaky does!!

just do it automatically and you ll have no problems.

regards

dazmond

[windowswashed]

I've got a direct debit set up with the tax man and put aside extra for any difference. Accountant sorted it out with the tax man on my behalf.

[A@R WINDOWCLEANING]

i put 25% of my weekly earnings nice little bonus at end of year

[Sunshine/Cleaning]

Lets say you started in April last year and  earnt £20,000 you will had your first year end in end March 2010.

lets say you owe £3000. This will be submitted and will be due end Jan 2011 plus half again. So total will be £4500 in Jan 2011 and £1500 July 2011.

If you started this year your first payment will be Jan 2012.

[DanC]

Do most of you do your own return or do you get an accountant to do it for you??

[gavin pedley]

If it's your first year watch out. You'll pay tax at the end of the year plus tax for half of the following year. Payment on account they call it.

also your ni contributions will seem amazingly low after coming out of employment. At the end of the tax year you will also have to pay a percentage of your earnings in additional ni contributions.

So i will need to put more away than 20% then?

For NI what if i am still in a PAYE job as well as this self employment?

[DanC]

Gav, do you find it a bit of a minefield mate??

[darren clarke]

if your on PAYE and self employed at same tiem   then u shoudl get a self assessment and go see an accountant,

[DanC]

Yeah that's what I've done.

 

[gavin pedley]

Gav, do you find it a bit of a minefield mate??

A little yes but i think i have got my head around most of it roughly. Just soaking up as much info as poss so i am not in the sh*t down the line.

[BORBRYCE]

You are/ we are all paid in large amounts of cash. We are all Human with Human nature. Put aside 28 per cent of what you intend to to declare. Any other advice is p.
20 per cent direct tax after expenses and 8 per cent class 4 national insurance at 8 per cent of you profit.
You can earn approx £6.500 per year before any tax is due. So don't count the first £6.500.

[DanC]

Yeah I'm much the same Gav. I'm sure in time the penny will drop 

[Klean07]

You are/ we are all paid in large amounts of cash. We are all Human with Human nature. Put aside 28 per cent of what you intend to to declare. Any other advice is p.
20 per cent direct tax after expenses and 8 per cent class 4 national insurance at 8 per cent of you profit.
You can earn approx £6.500 per year before any tax is due. So don't count the first £6.500.

http://www.hmrc.gov.uk/rates/it.htm

[GB Window Cleaning]

so what does everyone agree on 20%, 25%, or 28%?

my opinion is 25%