The point is what someone may get per hour is not in reality what they get in their pocket that is a fact,many times you hear I earn X being self
Employed you pay out in Tax twice a year or quarterly it’s easy to forget to cost everything in to or as an expense because many do.
How many window cleaners do you hear moan when January or July come round I hear many,they either haven’t allowed for it they don’t earn enough or they spend what they earn when again in reality all that you earn is not you’re own.
Yes we pay tax twice a year but most PAYE pay tax every month. Also we pay less.
In fact once fully established in this business there really isn't that much in terms of business expenditure, unless of course your a big multi van operation.
People often quote van as an expense, insurance, fuel etc. Well a large % of PAYE have a car dont they, that also requires insurance and fuel for their commute to work. I paid cash for my van, my other half has a car on finance and spends more money on fuel then me each week as well as higher insurance costs. Yet she cannot offset any of it against her tax bill like i can.
Yes we have other expenses but most of it is peanuts for a one man band. Tanks, poles, hose reels etc all last years if well looked after and again, are tax deductible.
Most of us don't feel the need to spend a fortune on a van, ionics tanks etc which is why we don't have these huge overheads and certainly don't need to earn £500 a day to pay for these things.
