Self employed.
- Thread starter eox
- Start date
Pug
Well-Known Member
I was always happy to pay my tax but a similar experience and then all the tax dodging/avoidance revelations of big business and our beloved leaders have made me think 'feck that'.
mago, post: 978159, member: 23452"]That's no doubt true, but it still costs you more than using an accountant.
As already mentioned a few times an accountant is 100% deductable so using one costs the business nothing. If you do your own books it takes time, your time, which costs you. That time could be spent on the business earning you more, or spent doing things you enjoy.[/QUOTE]
Think you'll find 100% deductable means you don't pay tax on that amount so if your accountant charges you £1000 you claim back 20% so you still end up £800 ot of pocket
As already mentioned a few times an accountant is 100% deductable so using one costs the business nothing. If you do your own books it takes time, your time, which costs you. That time could be spent on the business earning you more, or spent doing things you enjoy.[/QUOTE]
Think you'll find 100% deductable means you don't pay tax on that amount so if your accountant charges you £1000 you claim back 20% so you still end up £800 ot of pocket
Gibbo
Well-Known Member
T
Tust me i dont leave no money on the table my old accountant showed me whats what
eox
Active Member
1994Porn mags....are you from 1992
Gibbo
Well-Known Member
Think you'll find 100% deductable means you don't pay tax on that amount so if your accountant charges you £1000 you claim back 20% so you still end up £800 ot of pocket[/QUOTE]
Exactly only mps get 100% deductable
eox
Active Member
Cheers Danny need to find a decent one by me then which is going to be a pain in my ass
eox
Active Member
AfternoonHello
D
Deleted member 23452
Guest
Think you'll find 100% deductable means you don't pay tax on that amount so if your accountant charges you £1000 you claim back 20% so you still end up £800 ot of pocket[/QUOTE]
100% deductable means it comes out of the gross before any tax liability is calculated. Tax is only paid on profit.
If you don't spend it you get taxed on it, so as with a van, you get the use of an accountant who in turn saves/gains you additional money. It's a win win as the yanks say.
If you're purely working as a subby on site then I can see why you wouldn't bother, but you're still going to miss out.
For me I wouldn't be without one. I used to do my own VAT etc. but when I realised the time I was spending I just turned it all over to the accountant. I think it's about £2,500 a year for mine, and worth every penny considering the money he earns for me.
Orangemachineman
Well-Known Member
Tell your accountant as little as possible
Just enough to get your return done!!
Just enough to get your return done!!
Gibbo
Well-Known Member
100% deductable means it comes out of the gross before any tax liability is calculated. Tax is only paid on profit.
If you don't spend it you get taxed on it, so as with a van, you get the use of an accountant who in turn saves/gains you additional money. It's a win win as the yanks say.
If you're purely working as a subby on site then I can see why you wouldn't bother, but you're still going to miss out.
For me I wouldn't be without one. I used to do my own VAT etc. but when I realised the time I was spending I just turned it all over to the accountant. I think it's about £2,500 a year for mine, and worth every penny considering the money he earns for me.
[/QUOTE]how my going to miss out i know exactly what i am doing
reeves1985
Well-Known Member
I think another thing people are missing
If you self certify it's actually harder to get a mortgage than if an accountant does the books
God know why but it's the first thing the mortgage advisor asked my pal when he wanted a mortgage
If you self certify it's actually harder to get a mortgage than if an accountant does the books
God know why but it's the first thing the mortgage advisor asked my pal when he wanted a mortgage
Smudger1
Well-Known Member
Accountants handy if he finds new things to claim that you did`nt know about every year which theres always something as the IR & Gov mess about with things a lot ! Use room in house as office for doing your accounts, estimates, invoicing, printing etc etc gets a good few hundred off. Work clothes, coffee and cleaning gear etc, Advertising, All materials, staff wages & subbies, vehicles allowance, lots of other work related stuff. Plus your earning threshold before tax around £11.500 this year.
If you keep on top of your books then a month before your year end is due you can work out if your liable for any tax and spend it on business related gear you need during that years gross, rather than give it all to them ! You get hit for class4 NI as well as your quarterly self employment NI too. Plus the dreaded half on account on top of the tax bill.
You may qualify for working and child tax credits too based on your profit figures.
Accountant is useful .
If you keep on top of your books then a month before your year end is due you can work out if your liable for any tax and spend it on business related gear you need during that years gross, rather than give it all to them ! You get hit for class4 NI as well as your quarterly self employment NI too. Plus the dreaded half on account on top of the tax bill.
You may qualify for working and child tax credits too based on your profit figures.
Accountant is useful .
Fatarm
Trainee mod
Yeh..the payment to account thing rips my tits tbh
...wankas
Smudger1
Well-Known Member
Yeh..the payment to account thing rips my tits tbh
Yes its a rip off paying tax on what you aint even earned yet ! but if you think you wont make as much next year then you can cut the second half out of it out when your books are done before, i think you can get accountant to cut it all if your sure you wont get near as much as you paying this year making a loss ?
Fatarm
Trainee mod
Suppose you get it back if you ain't earned the same..but it's the paying up front on what you haven't earned yet that cracks me up..
Im gonna say to the kitchen fitter I do regular work for that i want paid up front for any work he's putting my way next year...
See how that goes down
Im gonna say to the kitchen fitter I do regular work for that i want paid up front for any work he's putting my way next year
...See how that goes down
eox
Active Member
Fancy explaining all this to me in thick as f**k terms I'm taking none of this in
Smudger1
Well-Known Member
Say your tax bill is £1k they want double that on account towards next years tax bill so say in january you pay the £1k you also pay half that on account on top = £1.5k then in july you pay the other half on account = £500 so you paid £2k half of which is towards the next years tax bill that you may or may not be liable to pay, so they get it till you know which way the future turns out . simples
rip off britain it is.
Jgreenplastering
Private Member
That's why your also best off limited.
You don't pay tax on account.
I think if your turnover is over 30k youd benefit more being limited than self employed.
Sent from my iPhone using Tapatalk
You don't pay tax on account.
I think if your turnover is over 30k youd benefit more being limited than self employed.
Sent from my iPhone using Tapatalk
eox
Active Member
What's limited got to do with anything?
Being Limited means that you have a limited amount of liability an offers you some protection. If your trade accounts/business loans/vehicle finance are all registered to your Limited company if it all goes tits up you don't lose everything, house etc
But the business could/will lose all it's assets...
Sent from my D6503 using Tapatalk
But the business could/will lose all it's assets...
Sent from my D6503 using Tapatalk
eox
Active Member
That actually sounds pretty decent tbh!
Orangemachineman
Well-Known Member
Ffs The guy hasn't a clue so I doubt going ltd is going to help him at this stage!!
puddove
Private Member
hi keith
yo,ve lost me on yr reply - perhaps its the cider taking over and Im not thinking straight------ again lol
eox
Active Member
Cheers for the vote of confidence pal
keithuk
Private Member
It could be from my end ? then its the Vodka !!,hope life is treating you well mate
Orangemachineman
Well-Known Member