[rich007]

 
Hi,
As some of you know, I will be taking over a round in April.  My cousin in going to buy the round with me.  So will split profit for the week down the middle. 
Just want some advice how I do the book....

In one week we take £700 and put £20 petrol in the van.  So you take the £20 from £700 which give you £680.  We would then split this into two wages, which would be £340 each.  Do we then both put 22% away each from our wage of £340 for the tax man.  This would leave us £265.20 each.

Is this correct.

  I know you pay ni of about £2.20 pw.

Can any one help.

Richard.

[Roy Harding]

Rich

You are taxed on your profit for the year.

You need receipts for petrol, equipment, ladders you buy any thing that is for the window cleaning bussines. This includes car running costs.

So if you have made £10,000.00 in a year and your bussines expenses were £4,000.00.

That would leave £6,000.00 then take off your personal allowance single or married mans.

A married mans was around about £4,500.00 at one time so you would deduct that from your £6,000.00 leaving you £1,500.00 that you would be taxed on.

This is roughly how it works.

Roy

[Paul Coleman]

 
Hi,
As some of you know, I will be taking over a round in April.  My cousin in going to buy the round with me.  So will split profit for the week down the middle. 
Just want some advice how I do the book....

In one week we take £700 and put £20 petrol in the van.  So you take the £20 from £700 which give you £680.  We would then split this into two wages, which would be £340 each.  Do we then both put 22% away each from our wage of £340 for the tax man.  This would leave us £265.20 each.

Is this correct.

  I know you pay ni of about £2.20 pw.

Can any one help.

Richard.

Others may say differently but I'll say to you what someone said to me when I first went self -employed.  They said "Get an accountant".  Not strictly necessary but can save you a whole load of aggro.

The next thing now is about NI.  Although the basic payment is about £2+ per week, remember that you also pay extra NI (11% I think) on your profits over a certain amount.  I can't recall the figure where that starts but I imagine it to be around £6,500 or £7,000 these days.

Anyway, after you have earned your basic allowance (about 5 grand I think) you pay 10% tax on the first bit etc etc.

I've just googled it. Have a look at

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

It will save me having to explain it all and I can't remember it all anyway  

[williamx]

Rich

Before you split the profits, I would put at least 15% to 25% away to cover for emergencies and to expand your business, also remember their are times when you won't be earning (illness-holidays-breakdowns and weather)

[ian m]

Hi

just make sure you keep a note of all outgoings / income. Buy a ledger from easons for a couple of quid (and keep the reciept) Depending on the value of the vehicle you are using, it might be more prudent to claim 40p per business mile rather than motoring expenses.


keep asking


hope your venture goes well

Ian

[Dick]

As you are going self employed presumably for the first time, I would recommend the use of an accountant (ask for a quote first) as it will save loads of possible hassle from I/Rev who may want to carry out an investigation, as they know roughly how much each window cleaner earns/claims. My accountants tells me, "it's not only knowing how much to claim, what you pay me for is knowing the right boxes to fill in".
Keep all business related receipts. You can always do next year's tax return yourself when you've got the hang of things.
Good Luck
Dick