Need help working out paye tax and N.I

Members online

No members online now.
Total: 243 (members: 1, guests: 242)

Share this page

Status
Not open for further replies.
D

dmplastering

Member
Need a bit of help lads. How do I go About working out what tax and NI deductions I make on employees wages and then how do I pay it from there?

Also as this is my first year self employed and pretty much all my work has been sub contract work through CIS on day rate. My tax is all deducted before I get my wage. Do I need to fill in a tax return and does this get sent to my door or do I have to apply? My dad says he gets an accountant to do his but you can do it yourself. What would you suggest?

Any help would be great as I'm worrying my little head off
 
You need to register as a contractor for a start and HMRC will send you a pack. There should be calculation tables for PAYE etc. Your problem will be that you have your tax deducted at source so if you aren't making at least 20% on your blokes, you are going to be out of pocket straight away.
 
I agree with getting an accountant... the saving is worth it also i use Online Accounting Software, Small Business Bookkeeping & Invoicing » Clear Books | Online Accounting to free your time as well to manage my accounts as i have found its it easy to keep track of who owes you and then if they dont pay it emails them remindets and also you can see exavtly how much money you make and whether you are in profit or not.... it only cost 6 a month and i pay about 12 a month due to tje amount of transactions i make :)
 
Yah I think I will get an accountant to do my return as I should be due a wage or two n do t wanna **** that up. Just confused as of what tax and NI deductions to take of the boys as they got paid directly by the firm before. I had a look about earlier online but it wasn't as clear as I was hoping
 
Get an ACCOUNTANT last thing you want is a hefty tax bill if u balls it up. Will the lads be direct for you or are they self employed? if they are subbies just deduct 20% and issue a subcontractors monthly statement outlining there earnings and deductions you have made and they are responsible for there own Ni contributions
 
Best to speak with an accountant and ask what the tax rate is and Ni ect as its diffent to CIS i use subbies, its much easier. Have you got good cash flow? direct employees are entitled to holiday pay, sick pay ect. If you have no work chances are theyl use there holiday and still want paying or you will end up paying them up at christmas plus any holiday pay you still owe them and while your not working over xmas theres no money coming in, i found this a bit tricky when i first started.
 
Yeah, turning over a fair bit at the moment, getting work left right and centre but we all know how that can change in a few months time. Maybe best to keep the labourer on the books and any other tradesman as a subby?
thanks for the advice btw. Thought I might be ale to do this with out any high accountant fees but ah well!
 
dmplastering said:
Well I don't have a clue that's why I'm asking. When I done my time I was thought how to plaster, not how to run a buisness
Click to expand...

i wasnt taking the piss,

running a business is equal to the ability to plaster, its no good sticking your head in the sand.
approach an accountant and explain your situation.

the money theyll charge you is tax deductable anyhow so its a no brainer. The cost may only be a few hundred quid, unless your into it in a fair way or ltd etc in which case your accountants bill could be a heap of money, mine was over 2 grand last year but worth every penny of it.
 
Ok, thought it was as easy as taking a couple boys on and paying their wages ever week but seems its not as simple as that.
Quick question. Does your end of year tax return come automatically through the door or do you have to apply for this? And when does it come If so?

Thanks for the advice
 
depends how your set up, mine goes to my accountant, but im different as a limted company so its corporation tax ,classed as an employee of the company etc
 
you must set up a limited, if you want true benefits, as then your tax burden reduces, and you take a minimum wage, but pay yourself through divdends and such
 
dmplastering said:
Quick question. Does your end of year tax return come automatically through the door or do you have to apply for this? And when does it come If so?
Click to expand...

You usually get a letter / reminder to do your tax return shortly after the 5th april. If you have done it online in the past and you still have your goverment gateway code i think you can log in again with the same code so no need to wait for reminder.
 
Ok thanks

How do you go about setting up a ltd company and is the benefits really worth it, M I better waiting until I'm more established?
 
Reading your posts it seems that the MC you're working for is now (as of the new tax year) washing their hands of your lads and putting you on 30/60 or -god forbid- 90 day payments. Is that right?
 
dmplastering said:
Yah I think I will get an accountant to do my return as I should be due a wage or two n do t wanna **** that up. Just confused as of what tax and NI deductions to take of the boys as they got paid directly by the firm before. I had a look about earlier online but it wasn't as clear as I was hoping
Click to expand...
Reading this it looks like you were all working directly for the Main Contractor, but now the MC wants you to take them onto your books - right?
 
alternatively, set up the limited, on- line, get your boy`s to invoice you otherwise if they are direct to you, you will be liable for employers N.I contributions approx 14%, thats why companies keep the rates down, very expensive to employ people direct,(sorry to mention rates lads). watchout for the sting in the tail, invoice 30/60/ even 90 day payments, you could be funding the builders job, (I would have quote bubbles, but how do you do the cloud)????????
 
bodymould said:
alternatively, set up the limited, on- line, get your boy`s to invoice you otherwise if they are direct to you, you will be liable for employers N.I contributions approx 14%, thats why companies keep the rates down, very expensive to employ people direct,(sorry to mention rates lads). watchout for the sting in the tail, invoice 30/60/ even 90 day payments, you could be funding the builders job, (I would have quote bubbles, but how do you do the bubble )
???????
Click to expand...


Only bubbles65 can do the bubble
 
bubbles65 said:
Reading this it looks like you were all working directly for the Main Contractor, but now the MC wants you to take them onto your books - right?
Click to expand...
I get you now.
You are right, MC paid myself and the other lad directly on day rate however work is coming out my ears and although the rate was no bad, we have agreed that I go on price, which means more money. Thats why I want to put the current lad thru the books and the same with any others I may take on in the future
 
Yeah I'm well looked after up here. I've got three bigish firms and a small builder all wanting me to do price work for them. Good prices at that as well
 
dmplastering said:
Ok thanks

How do you go about setting up a ltd company and is the benefits really worth it, M I better waiting until I'm more established?
Click to expand...

Get an accountantant and ask him to register you as a Ltd company with companies house (theres a charge to do this bout £200-300 if i remember correctly)
 
Status
Not open for further replies.
Top