Paying tax

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s.p.t plastering

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How do you lads save your tax?....I'm trying to figure out the best way, only started up on my own last year, and don't know the best way to go about it....Got an accountant coming round tomorrow, another thing, finding a good accountant that's not a rip off..


Do i take 20% out of every bit of money i get from each job and stick it in a different bank account? or savings account? till the end of year? or is 20% not enough?

I really am a crap saver, so don't know how to do it, with out haveing a massive tax bill at the end of year and no cash to pay it....

How much should i be paying for bookkeeping/tax returns?....
 
I really am a crap saver, so don't know how to do it, with out haveing a massive tax bill at the end of year and no cash to pay it....


Lol! This is how I do it!
 
You can get HMRC to take £xxx amount every week month and thell refund u the differnce.
If ur crap at saving this is best policy id say.
I keep 20% of everything i take and put it aside in different bank account. so i get a job for £1000 i put 20 % bye for tax fees etc.
End of year i always have money left over which i buy new kit or van upgrade and that comes of next years bill.
I pay my accountant i think £650-£700 to do return on business and a rental house +holiday home i have in Fuertventura.
If you can save the money ur self it means u have flexibility if u got casjflow probs or need lots of materials and u dont have funds in place u can use that money and put it back later.
 
Your tax depends on your net profit mate work out a sum you think you might make in a year and base your tax bill on this. Tax allowance 2009 2010 £6,475

And The amount of Class 4 National Insurance contributions you have to pay for any tax year is based on your profits for that year. You pay 8 per cent on annual profits between £5,715 and £43,875 (2010-11) and 1 per cent on any profit over that amount.
Now the trick is how do I save the money that's your problem LOL. Devils in the detail mate, look to what you can claim for to offset tax.
 
Cheers boys, i like the sound of that what skimming is on about, can pay a bit monthly....

I'm going to try saving 20% of each job and putting in another bank, sod it......Is that enough 20%?
 
thats what i use to do,i stuck it in an isa just a conservative amount each month,then paid it at end of year.
but thats when the interest was about 6% on an average isa, now you might as well pay the bank to have your savings with them.
 
s.p.t plastering said:
Cheers boys, i like the sound of that what skimming is on about, can pay a bit monthly....

I'm going to try saving 20% of each job and putting in another bank, sod it......Is that enough 20%?
Click to expand...

20% is enough mate that's what i do.
Get to bank accounts & just go online & transfer 20% off each job each week fortnight or month then you'll have enough for your bill & some left over.
A builder I used to subbie to would take 20% off us.
Then we'd get about £2000 back from tax each year:RpS_thumbup:
My accountant is £375 that includes a bit extra incase i get investigated which i did a few Years ago:rolleyes)
 
Yes Barry aswell as my dole money I deduct 20% tax out of my wages on every job I do then pay it back to myself at the end of the year. All cash by the way.
I thought everyone did it that way :RpS_unsure:
 
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form a ltd company put every expence down that you can leave all the money in the bank and just draw £5,100 wages for you and your lass total £10,200.00 a year, you are now classed as low income family so you can claim every benefit under the sun, at the end of the year take a dividend out instead of a salary... ps value your companies good will for as much as possible... this will allow you to draw bigger dividends out without incuring tax... ps as you are a low wage you dont pay class 4 national insurance the goverment cover that for you
 
I know what ur saying render,but if everyone did what u r saying what state would this country be in?
Pm me details old chap !!!
 
@render thats the way most companies operate.... you also only get charged 10% income tax on dividends :)

However going ltd means accountant is normally more expensive :)

I book all expenses.. I am worst than a politician, my accountant then tells me what I can claim and what I cant... but pretty much every one of my bill snow is covered :)

A good accountant will make you more money than he costs... in theory
 
Render Systems said:
form a ltd company put every expence down that you can leave all the money in the bank and just draw £5,100 wages for you and your lass total £10,200.00 a year, you are now classed as low income family so you can claim every benefit under the sun, at the end of the year take a dividend out instead of a salary... ps value your companies good will for as much as possible... this will allow you to draw bigger dividends out without incuring tax... ps as you are a low wage you dont pay class 4 national insurance the goverment cover that for you
Click to expand...

Well we are paying over 40 million a day in interest on money the labour party borrowed, how much worse state could we be in.
 
its a legal way to reduce your tax bill and claim every benefit under the sun... if you have small kids or need prescriptions etc then your quids in... my brats are all grown up now so i dont get anything, last year before i set the new ltd company up i paid 27K in tax and nearly 5k class 4 insurance, and because of this my daughter couldnt get EMA to stay on at college...
 
27 grand tax!!

ive just paid 16 grand and im still crying over it.
renders right there aint anything wrong with tax avoidance as appossed to tax avasion,i bet camerons banking buddies aint to worried paying there pitance in tax in relation to what they earn through ltd companys and registerd offices in the caymon islands.
 
i put my rental car and flights i used in spain last year and claimed for that just told accountant i was pricing a job... didnt get it though i was to tight to pay myself
 
haha brilliant.
i might ask my accountant if i can get my holiday next year in mauritius through my books.
 
do see why not mate... i was working in barbados last year for 7 weeks (really working) just get your lass to take a few photos on local building sites etc... they cant prove anything.... also find some company in mauritis find an email addrees for them and send yourself a few enquiries... went there... it was a con... didnt get the work... tax loss.....
 
I put 20% into a self dealing ISA.Self dealing means you buy and sell your own shares,i ahve made a forune out of penny shares,and cos its in a isa its all tax free.I mainly buy and sell on 4 shares,all set up on the puter to buy and sell automaticlly,you get a email to say how many was bought, and how many was sold, and the cash goes in and out of your account.
 
PS got a result today... i had a corporation tax bill of a couple of grand... anyway that company that went banko on me last year for £4,150.00 has reduced my tax liability to nowt....
 
i had same last year, when i didnt get paid off a job. cut my tax bill down. got to take some positive out of it

shows that web sites work and pay dividends.
 
I was in Barbados about 20 years ago and had a crack with a few locals who were putting sand n cement render on. I asked them what additives they used - fkinell ya should've seen their faces:-0 They reckoned they put fkall in it! By the look of the walls - about 2m - 3m patches all over, they weren't lying. Is it still the same Render?
 
Render Systems said:
form a ltd company put every expence down that you can leave all the money in the bank and just draw £5,100 wages for you and your lass total £10,200.00 a year, you are now classed as low income family so you can claim every benefit under the sun, at the end of the year take a dividend out instead of a salary... ps value your companies good will for as much as possible... this will allow you to draw bigger dividends out without incuring tax... ps as you are a low wage you dont pay class 4 national insurance the goverment cover that for you
Click to expand...

a down side to this is you wont be able to get a mortgage above 30k its a catch 22 situation
 
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