Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: windiewasher on November 30, 2010, 11:37:16 pm

Title: first year tax return
Post by: windiewasher on November 30, 2010, 11:37:16 pm
if yo spent 8k more than you earnt in the first year,what sort of rebate should you get?
Title: Re: first year tax return
Post by: mci services on November 30, 2010, 11:44:50 pm
if yo spent 8k more than you earnt in the first year,what sort of rebate should you get?

didn't you do part of the year paye for an employer, to many variables to answer to be honest but you will not owe anything, well that depends on what you earned paye if anything,
Title: Re: first year tax return
Post by: darren clarke on November 30, 2010, 11:46:05 pm
u dont get a rebate as such,  do u have any money saved for the tax
Title: Re: first year tax return
Post by: mci services on November 30, 2010, 11:50:22 pm
u dont get a rebate as such,  do u have any money saved for the tax

I did because I had paid some of the year paye and the final part self employed. but only on the first year,
Title: Re: first year tax return
Post by: darren clarke on November 30, 2010, 11:52:35 pm
i know what u r saying stu,  but we need to know what his trading year is,  weather he has done other work,  they will ask for some on account,   like u said there is a lot to be takin to consideration for his answer
Title: Re: first year tax return
Post by: windiewasher on November 30, 2010, 11:54:16 pm
25k paye
Title: Re: first year tax return
Post by: darren clarke on November 30, 2010, 11:56:08 pm
so u was self employed for the whole tax year apr to mar and u earnt 25 grand  but spent 33
Title: Re: first year tax return
Post by: ♠Winp®oClean♠ on November 30, 2010, 11:57:21 pm
if yo spent 8k more than you earnt in the first year,what sort of rebate should you get?

Might be better to speak with an accountant. If you are due no or little rebate on any tax you may have payed from other employment you might be better off writing some expenses down over more than one year. e.g. van or expensive poles etc. Otherwise you'll get NO tax relief on it.
Title: Re: first year tax return
Post by: windiewasher on December 01, 2010, 12:01:38 am
Paye paid 25k
Self employed 8k earn nothing
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:02:46 am
how much did ur business spend
Title: Re: first year tax return
Post by: mci services on December 01, 2010, 12:03:28 am
the way it works is I am putting my return in for 2009 to 2010 april

so what you earned in  that year is what mattered and how much you spent
Title: Re: first year tax return
Post by: windiewasher on December 01, 2010, 12:04:43 am
[quote author=Blue 8k nothing earned
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:05:27 am
ok, so u got 8k worth of receipts or does that inclue what i paid ur self in wages
Title: Re: first year tax return
Post by: ♠Winp®oClean♠ on December 01, 2010, 12:06:17 am
Paye paid 25k
Self employed 8k earn nothing

You should be due something then. still might be worth considering an  accountant though as to best way to use the 8k for tax relief. ;)
Title: Re: first year tax return
Post by: windiewasher on December 01, 2010, 12:09:01 am
Yes all reciepts
ok, so u got 8k worth of receipts or does that inclue what i paid ur self in wages
Title: Re: first year tax return
Post by: mci services on December 01, 2010, 12:11:40 am
yes but did you spend that 8k between april 2009 to april 2010 and when did you earn the 25k
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:13:16 am
on the 25 k u earnt u would pay approx £6,028,  (inc ni) this is assuming u had tax code 6035L    

on the 8 k  u should pay no tax,  as u will have paid enough tax for what u earnt

as they will take the tax year as earning 33 but the amount that is un taxable is  14k  leaving 19  tax on 19 is just under 6 grand,  u might get a couple of hundred if u are lucky

this is just rough
Title: Re: first year tax return
Post by: windiewasher on December 01, 2010, 12:15:36 am
Yes both in that year
yes but did you spend that 8k between april 2009 to april 2010 and when did you earn the 25k
Title: Re: first year tax return
Post by: windiewasher on December 01, 2010, 12:17:21 am
Quote from: Blue Monkey lithe 8 is to come off meaning earnings only 17k nk=topic=113365.msg970724#msg970724 date=1291162396
on the 25 k u earnt u would pay approx £6,028,  (inc ni) this is assuming u had tax code 6035L    

on the 8 k  u should pay no tax,  as u will have paid enough tax for what u earnt

as they will take the tax year as earning 33 but the amount that is un taxable is  14k  leaving 19  tax on 19 is just under 6 grand,  u might get a couple of hundred if u are lucky

this is just rough
Title: Re: first year tax return
Post by: mci services on December 01, 2010, 12:17:43 am
then blue monkey is probably right
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:20:43 am
no  u earnt 25k in a job and 8 self employed  therefore earnings for year where 33 k

u paid take in ur job of 6 k  and have expenses in self employed of 8  there for it is 14 k

33k earnings - 14 k expensie and tax code =19k which is taxable

33% of 19 k is 6 ish grand  inc ni
Title: Re: first year tax return
Post by: windiewasher on December 01, 2010, 12:22:07 am
Earnings will be 17k with the 8 deducted
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:23:33 am
did u earn 25 (employed) + 8(self employed)   or 25 in total for year
Title: Re: first year tax return
Post by: windiewasher on December 01, 2010, 12:26:06 am
25 employed nothing self employed but spent 8l  self employed
did u earn 25 (employed) + 8(self employed)   or 25 in total for year
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:27:35 am
ok,  forget what u spent,  did u make any money window cleaning  and how much

Title: Re: first year tax return
Post by: mci services on December 01, 2010, 12:29:02 am
0
Title: Re: first year tax return
Post by: windiewasher on December 01, 2010, 12:29:29 am
About 100 quid
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:37:47 am
right

ur earnings for the year will be 25100

u might have to file 2 tax returns, 1 for paye and 1 for self employed,  the tax u payed on paye will be right,

u have a business loss of 8 k in ur first year,  (out of that 8k is any of it wages  say from money the business had in bank)

u might get a rebate of about 3 k, 2909 is what u should of paid on that tax year
Title: Re: first year tax return
Post by: windiewasher on December 01, 2010, 12:40:16 am
Nones. Wages cheers
right

ur earnings for the year will be 25100

u might have to file 2 tax returns, 1 for paye and 1 for self employed,  the tax u payed on paye will be right,

u have a business loss of 8 k in ur first year,  (out of that 8k is any of it wages  say from money the business had in bank)

u might get a rebate of about 3 k, 2909 is what u should of paid on that tax year
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:43:48 am
25100-8000-6035=11065 (earning for year)  31% of that is 3430 tax

minus this from what u paid 6028 =  2597 (poss rebate)

it all depends which way u do the calculation
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:47:46 am
but u might be better carrying the loss over to the following years,

it can all vary depending on what ur expenses are  ie van fuel, etc
Title: Re: first year tax return
Post by: mci services on December 01, 2010, 12:48:06 am
get your p46 for the year and it would be easier to work out
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:53:10 am
Gross Pay  £25,100.00
Tax free Allowances  £14,475.00
Total taxable £10,625.00
Tax due £2,125.00
    40% tax rate £0.00
    20% tax rate £2,125.00
National Insurance £2,131.80
Total Deductions £4,256.80
Net Wage £20,843.20
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 12:54:42 am
ur biggest prob is becasue u went self employed  half way through year

u need to find out ur tax code as well,  as that can make a big difference
Title: Re: first year tax return
Post by: mci services on December 01, 2010, 12:56:09 am
surely some of that 8k is capital investment though and would change things?

I have no idea
Title: Re: first year tax return
Post by: darren clarke on December 01, 2010, 01:12:07 am
it depends on what he has spent it on   ie van etc

but he need to go to an accountant 

it all depends weather it is a capital investment or capital expendure,

its a bit like tax evasion and tax avoidence,