[Sunshine Cleaning]

Something is seriously wrong if a window cleaner is paying £450 in tax/NI 04/05.
That works out at net (after expenses) £7400 .
http://www.listentotaxman.com/index.php?calc=1&year=2004&isMarried=1&isWidow=1&age=0&add=1000&taxcode=&period=1&ingr=8400&Submit=Calculate
To be paying £660 tax/NI 05/06 earnings would be £8500 ish net / 9500gross.
http://www.listentotaxman.com/index.php?calc=1&year=2005&isMarried=1&isWidow=1&age=0&add=1000&taxcode=&period=1&ingr=9500&Submit=Calculate

Thats not a massive amount of money even if your partner is working.

It's an average of £180 per week before expenses.

It's not much of a living.

Your problem as has been noted is you creeped over the threshhold and now like most people you have to pay "on account" basicly double. One half added to Jan the other in July.

Dont forget you have already earnt this money up to the end of March 06.

To calculate how much next Jan/July will be click here, http://www.listentotaxman.com/index.php?isMarried=1&isWidow=1&isBlind=0&isStudent=0&calc=1&year=2006&age=0&add=1000&taxcode=&ingr=10500&period=1&chart=0&payrise=0&gr=10500

Lets say you earn £1000 more, yor total liability will be £884. You will have to pay this split over Jan/July plus the balancing payment of £220 in Jan.

So that will be £660 Jan and £440 in July.

Each year you earn more you pay the balancing payment in Jan.


Dont forget the site above is for PAYE and NI is taxed at 12% not 8% so the final figures will be out but it gives a basic calculation for the year ahead.

let

[macc]

You could borrow a wfp system, you should make that amount within 2 weeks.

Good idea, What do you think Rog?

The answer to your problems 

[Pureandclean]

My accountant told me the Tax office were going to be on strike today, must be because today is their busiest day, and they don't fancy having to break into a sweat 

Blessings,

Graeme

[chosker]

Yep they are on strike and like an idiot i left my tax return till today... never done it before and never will again...

What happens now cos i called them earlier and they aren't taking any returns today, surely they can't give you a penalty for handing it in tomorrow if they're on strike    or would they say you should have done it earlier???

[Tosh]

Of course they can't fine you as long as your tax return arrived there TODAY.

It says on the form it's got to arrive there by the 31st Jan.

But if it arrives tommorow, I reckon you've got an extra hundred quid to cough up.

[chosker]

We have always been ok to just put it through the door of our local tax office on the night... if they get it before midnight its ok.

Anyway, not as bad as i made it sound, having thought about it, my tax return was done on line, its just the payment they wont get till tomorrow. Apparently they don't penalose you for this, but they charge interest... i'm sure one days worth of interest will be peanuts!

[Tosh]

Ahhh, I've just opened my mail and find I've just had a smacked wrist from the Gwent Magistrates Court!  (I'm sure I live in Monmouthshire though??)

I've been fined 50 quid for the following:

Self Assessment 2nd Payment on Account 2005/2006.

Amount unpaid 193.61. 

Interest there on under Section 86 TMA 1970 0.03 per day 35.09

Cost of this Summons 50 quid.

Total278.70

The rotten dirty scumbags.  If I don't cough up before the 16 May 2007, I've got to appear at the Court House in Abergavenny!

Crickey, it was only a couple of hundred quid I owed!

I guess I'd better cough up.  I thought I'd get at least another letter warning me first!

[adixon]

if you get an accountant you claim the money back anyway so youve lost nothing my accounts were done this year for £150 and the fee was deducted from my tax bill and any problems go back to them sorted not worth the stress of doing yourself

[EasyClean]

I work part time hours because of my long term illness and 'squeeky cleans' tax bill looks like pocket money compared to my tax bill. Does squeeky clean work part time hours too??? Or does he clean windows the traditional way-hence the small tax bill!!!!!!!!!

[Paul Coleman]

We have always been ok to just put it through the door of our local tax office on the night... if they get it before midnight its ok.

Anyway, not as bad as i made it sound, having thought about it, my tax return was done on line, its just the payment they wont get till tomorrow. Apparently they don't penalose you for this, but they charge interest... i'm sure one days worth of interest will be peanuts!

I have sometimes found the IR lacking when it comes to losing paperwork.  I always take my cheque into their office and get the receipt signed and dated.  It's no hassle.  I can see their office from my living room window.

[KarlJones]

if you get an accountant you claim the money back anyway so youve lost nothing my accounts were done this year for £150 and the fee was deducted from my tax bill and any problems go back to them sorted not worth the stress of doing yourself

You can claim it ALL back?  the whole 150 quid?

[Sunshine Cleaning]

I dont think it comes directly off the tax bill, but it is 100% allowable expense.

[WavieDavie]

Squeaky,

Here's some tough love for you . . .

There's nothing more certain in life than death and taxes, so don't complain you didn't know you would have to pay.

You know how much you make each week and so you should have put enough away into a high-interest account and MADE money on the back of the taxman before you had to hand it over.

Because there's now a black mark on your file at the tax office, and you're in a cash business, there's a better chance of you getting an investigation sooner rather than later. I don't think accountants fees for representing you at investigations ARE tax-deductable, and they sting!, but maybe someone else can confirm.

If what you quoted is the real amount you should be paying, the taxman won't believe that you're making less in self-employment than you would in a dead-end job.

If you can't afford to pay your tax bill, how are you putting anything away for your future?

All this slagging off wfp . . . you just can't afford it. Get a bank loan, or buy a system on a plastic card and pay it back over a year or so.

And now, the toughest bit - frankly, you'd be better off working for someone else.

Don't shoot the messenger.