Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Ryan @ Transparent, Carlisle on January 07, 2011, 07:55:12 pm

Title: another tax question > PROFIT vs TAKINGS
Post by: Ryan @ Transparent, Carlisle on January 07, 2011, 07:55:12 pm
Last year when i did my tax return, i managed to have clear accounts, ie my PROFIT was the same figure as my actual TAKINGS.

however, this year is a lot different, i know i have 4 months to think about it, but when i fill my tax return in, do i enter my PROFIT or my TAKINGS for the year? cheers
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: formb on January 07, 2011, 08:00:25 pm
I don't understand. Are you saying your profit was the same as your turnover? I e no expenses whatsoever.
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: Ryan @ Transparent, Carlisle on January 07, 2011, 08:09:28 pm
sorry i should of made myself more clear -

PROFIT FOR PERIOD (profit after expesnes)

NET CASH INFLOW (actual cash/cheques TAKING in)
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: davids3511 on January 07, 2011, 08:14:33 pm
Ryan, you are best asking an accountant things like this. Advise from a forum can often be out of date or just plain wrong.
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: formb on January 07, 2011, 08:26:36 pm
Ryan, you are best asking an accountant things like this. Advise from a forum can often be out of date or just plain wrong.

Yea talk to a pro, he may well save you more than he charges.
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: Ryan @ Transparent, Carlisle on January 07, 2011, 08:30:15 pm
well, accountant, was my plans for 2011/2012. i just thought id try & do things myself for this year, then seek professional advise next year.

As it stands, going by PROFITS FOR PERIOD (06/04/2010 to present) my tax bill would be £152.71 upto now :D
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: formb on January 07, 2011, 08:32:57 pm
well, accountant, was my plans for 2011/2012. i just thought id try & do things myself for this year, then seek professional advise next year.

As it stands, going by PROFITS FOR PERIOD (06/04/2010 to present) my tax bill would be £152.71 upto now :D

Ouch. ;)
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: awcs on January 07, 2011, 08:33:39 pm
phone hmrc they are really helpfull
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: Ryan @ Transparent, Carlisle on January 07, 2011, 08:37:26 pm
phone hmrc they are really helpfull

brilliant, why didnt i think of this before ???
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: Handyman Window Cleaning Services on January 07, 2011, 09:34:58 pm
i was told do do my accounts this way

TURNOVER =  all job invoice

to find profit you take away EXPENCES (invoiced, no necesseraly paid yet) and WRITTEN OFF jobs

Takings is cashflow based so to find that

=

cash colectted - cash spent


tax man would like to see cash flow and business activity.


i never knew that till last year, for 3 years i just show cash flow   ::)
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: mikecam on January 07, 2011, 10:22:00 pm
phone hmrc they are really helpfull

brilliant, why didnt i think of this before ???

Well it would be a better idea than telling us your profit was equal to your takings?
Seek proffesional help, doesnt seem like you have a clue. You very may wel have, i'm just saying its 'seems' like you don't.
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: Ryan @ Transparent, Carlisle on January 07, 2011, 10:53:59 pm
again, ive failed to explain myself clearly (pear cider no good for brain)

please, let me start again.

at april 5th 2010, i had NO DEBTS.

eg; my TURNOVER was lets say £6000,

my net cash INFLOW was also £6000,

meaning, i closed 2009/2010 accounts with no debts.

so imade & took in £6000, MINUS my expenses.

clearer now? or am i still too drunk ;D
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: mikecam on January 07, 2011, 11:00:58 pm
again, ive failed to explain myself clearly (pear cider no good for brain)

please, let me start again.

at april 5th 2010, i had NO DEBTS.

eg; my TURNOVER was lets say £6000,

my net cash INFLOW was also £6000,

meaning, i closed 2009/2010 accounts with no debts.

so imade & took in £6000, MINUS my expenses.

clearer now? or am i still too drunk ;D
No debts? Ok, you're trad !!!  ;D  You must have used some fairy liquid?!!!
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: darren clarke on January 07, 2011, 11:08:25 pm
you enter everything that your business as made as turn over

turn over - exthingyes = profit,  u pay tax on profit


did you do your accounts your self last year,  get them checked as it doesnt make sense
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: davids3511 on January 07, 2011, 11:11:57 pm
again, ive failed to explain myself clearly (pear cider no good for brain)

please, let me start again.

at april 5th 2010, i had NO DEBTS.

eg; my TURNOVER was lets say £6000,

my net cash INFLOW was also £6000,

meaning, i closed 2009/2010 accounts with no debts.

so imade & took in £6000, MINUS my expenses.

clearer now? or am i still too drunk ;D
Debts don't really have anything to do with it. The tax man wants to know your
1. turnover ie all the work you have done
2. Your expenses ie everything that is allowable that you have paid out.

Put simply subtract the two and you have your gross profit which is waht the tax man will base his assesment on.

It is in reality far more complicated than that.
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: NJWindowCleaning on January 07, 2011, 11:12:09 pm
How I understand taxes: lets say everything you earnt in the year was 12000 which is your turnover,

and so minus expense lets say 4000 inwhich equals 8000 this would be your profit,

but then you got capital agains to take off your profit  and then becomes smaller and not forgetting the tax man gives you 6450 tax free and anything left is what your pay tax on etc.

Hope this helps in some way. :D
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: windiewasher on January 07, 2011, 11:13:28 pm
heres me thinking you had 800 customers and took £500 a day,yet you got a rebate last year and this year so far only £100 for tax,i can see the tax man paying you a visit  ;D
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: Ryan @ Transparent, Carlisle on January 07, 2011, 11:38:41 pm
when did i ever say i had 800 custys, and £500 a day????

would be nice though
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: LWC on January 08, 2011, 01:11:46 am
How much you earned and how much you spent is what you should be putting through

Title: Re: another tax question > PROFIT vs TAKINGS
Post by: Frankybadboy on January 08, 2011, 06:26:24 am
this bloke was doing 70 houses a day between 3 of them only the other month,then post these sorts of figures,

do your maths lads.        ::) ::) ::) ::) ::) ::) ::)
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: LWC on January 08, 2011, 08:35:24 am
Guys he said "lets say £6000" Hes not gonna put his actual figure on here is he
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: windiewasher on January 08, 2011, 09:09:53 am
Owes hundred pound tax for 9 months work
Does 70 houses a day over 500 custys 2 months ago
Every week he canvasses a few hundred pounds a week
Guys he said "lets say £6000" Hes not gonna put his actual figure on here is he
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: LWC on January 08, 2011, 09:12:25 am
Take it back lol
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: Smudger on January 08, 2011, 09:30:18 am
do you mean this  ???

i've never canvassed in the rain, so cant say if you get same response...

i have only canvassed when weather is fair, now approaching 500 customers after just over a year in the trade  ;)
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: windiewasher on January 08, 2011, 09:36:41 am
Yes that's the one.7 nightclubs and a hotel a few weeks back.
do you mean this  ???

i've never canvassed in the rain, so cant say if you get same response...

i have only canvassed when weather is fair, now approaching 500 customers after just over a year in the trade  ;)
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: Frankybadboy on January 08, 2011, 11:59:58 am
i smell a rat here ;D ;D ;D :P
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: Alex Allen on January 08, 2011, 03:41:52 pm
Ryan, you are best asking an accountant things like this. Advise from a forum can often be out of date or just plain wrong.



I agree you need an accountant, especially when you start
you have all your start up cost as well as running cost

It sounds like he is in a complet mess, with that sort of question he posted
with the amount of customers
pricing of the work and having to take on staff at this stage
i;m not surprised your not making any money

my advice would be to start again with an accountant
drop all work that dosent make any money
get rid of staff (big cost) good luck


Title: Re: another tax question > PROFIT vs TAKINGS
Post by: windiewasher on January 10, 2011, 10:30:04 pm
me too  ;D  ;D  ;D  ;D
i smell a rat here ;D ;D ;D :P
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: window11 on January 10, 2011, 10:36:41 pm
heres me thinking you had 800 customers and took £500 a day,yet you got a rebate last year and this year so far only £100 for tax,i can see the tax man paying you a visit  ;D


I agree doc
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: dave0123 on January 11, 2011, 12:03:06 am
Your turnover is the amount you have done in the year weather they have paid or not! you then will have to show debts written off and carnt remember the word but it goes into a certain colum for money owed. The "accounts" are done on amount charged not cash flow
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: windiewasher on January 11, 2011, 11:30:39 pm
did ryan sort it?
Your turnover is the amount you have done in the year weather they have paid or not! you then will have to show debts written off and carnt remember the word but it goes into a certain colum for money owed. The "accounts" are done on amount charged not cash flow
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: mikecam on January 11, 2011, 11:48:24 pm
i smell a rat here ;D ;D ;D :P

Hang on, which thread are we in? Is this the...... my takings where the same as my profit or is this the ........is it worth going VAT registered thread?
Title: Re: another tax question > PROFIT vs TAKINGS
Post by: windiewasher on January 12, 2011, 04:33:41 pm
 ;D
i smell a rat here ;D ;D ;D :P

Hang on, which thread are we in? Is this the...... my takings where the same as my profit or is this the ........is it worth going VAT registered thread?