Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Dougaldum on July 15, 2011, 05:05:50 pm

Title: tax bill
Post by: Dougaldum on July 15, 2011, 05:05:50 pm
have you set a side money for this  :-\
Title: Re: tax bill
Post by: Mike_G on July 15, 2011, 05:07:58 pm
Bit late if you have not, always the credit card i suppose
Title: Re: tax bill
Post by: dave0123 on July 15, 2011, 05:43:41 pm
Quote
have you set a side money for this 

the most typical error that self employed make.. always stuff some away each month for this
Title: Re: tax bill
Post by: Frankybadboy on July 15, 2011, 05:59:36 pm
yes,and got a nice re-fund coming back hehehehehehe ;D
Title: Re: tax bill
Post by: Paul Coleman on July 15, 2011, 06:01:11 pm
I will be able to pay most of it by the end of July.  The rest will probably take until mid August so I expect to be charged a little bit of interest.
Title: Re: tax bill
Post by: clarkson on July 15, 2011, 07:15:26 pm

 hi
 beware that the tax office are charging a hefty surcharge over and above interest on late payments.

 as you are talking july i assume these are your payment on account which  i dont think you get the surcharge for.  any other tax like balance payment is getting hit hard.

 cheers

 john
Title: Re: tax bill
Post by: SunShineCleaning on July 15, 2011, 07:42:34 pm
Already paid mine and have January's in the bank.
Title: Re: tax bill
Post by: Paul Coleman on July 15, 2011, 08:07:06 pm

 hi
 beware that the tax office are charging a hefty surcharge over and above interest on late payments.

 as you are talking july i assume these are your payment on account which  i dont think you get the surcharge for.  any other tax like balance payment is getting hit hard.

 cheers

 john

Yes I know that the surcharges have increased recently.  They add 5% to anything that is over one month late.  That has been the case for quite a while.  However, now they add extra surcharges (5% of outstanding amount) at 6 months and again at 12 months.  There should only be a small amount left to pay come mid August.  As that is less than one month late, there would be no surcharge.  However, an annual interest rate of 3% kicks in on the first late day.  As I would only be two weeks late that would be one twentysixth of 3%.  It would add about one ninth of a percent to the amount owing - i.e. about 11p per £100 short.  I do hope to be able to pay in full and on time.  However, it looks like a large cheque that I am due won't be with me till early/mid August.

http://www.hmrc.gov.uk/sa/deadlines-penalties.htm
Title: Re: tax bill
Post by: GB Window Cleaning on July 15, 2011, 08:11:34 pm
oct 31 paper as to be in yeah?  :-[
Title: Re: tax bill
Post by: scud on July 15, 2011, 08:15:04 pm
  I don't think they put a surcharge on account payments, you are actually paying in advance, therefore the money isn't actually late at that point.

  Having said that, their interest charges are alot more favourable than your flexible friend!
Title: Re: tax bill
Post by: ♠Winp®oClean♠ on July 15, 2011, 08:17:53 pm
oct 31 paper as to be in yeah?  :-[

Yes but-

Another tip GB- the sooner the better! Don't be faffing about come January.

Put money aside each week for your tax & NI liability. ;)

Title: Re: tax bill
Post by: alanwilson on July 15, 2011, 08:21:56 pm
tax apparently doesn't have to be taxing
Title: Re: tax bill
Post by: AuRavelling79 on July 15, 2011, 08:44:55 pm
I pay £250 a month by direct debit; sweetens the blow somewhat come July 31st and January 31st.
Title: Re: tax bill
Post by: Paul Coleman on July 15, 2011, 09:07:13 pm
I pay £250 a month by direct debit; sweetens the blow somewhat come July 31st and January 31st.

I'm meant to pay nearly £2.5k by July 31.  I do have the equivalent of over £250 a month put by but it won't be enough.  There was a fair jump in profit in the relevant year so I'm being hammered a bit with the payment on account.  Next year will be a bit easier as the profit level is fairly static.  Although I turned over more, I bought some business items that reduce the profit to around the previous year's.
Title: Re: tax bill
Post by: Jeff Brimble on July 15, 2011, 09:12:17 pm
Already paid mine and have January's in the bank.
Ditto  ;)
Title: Re: tax bill
Post by: Tom White on July 15, 2011, 09:16:01 pm
Already paid mine and have January's in the bank.
Ditto  ;)

Teacher's pets!

I'm similar to Gold, but I pay by standing order, not direct debit.  I can adjust my payments myself that way using interweb banking.
Title: Re: tax bill
Post by: edward1 on July 15, 2011, 09:33:20 pm
wish mine was only 2.5 k ::)
Title: Re: tax bill
Post by: SunShineCleaning on July 15, 2011, 10:33:02 pm
Already paid mine and have January's in the bank.
Ditto  ;)

Teacher's pets!

I'm similar to Gold, but I pay by standing order, not direct debit.  I can adjust my payments myself that way using interweb banking.

No just being prudent.

I recommend to startups that you only draw 50% of turnover and live off that. That way you always have money saved for Tax and emergencies.
Title: Re: tax bill
Post by: Helen on July 15, 2011, 11:35:41 pm
have you set a side money for this  :-\

Have you? :)
Title: Re: tax bill
Post by: poole bay on July 15, 2011, 11:52:48 pm
Just go buy some think on hp then pay monthly new car for collecting
Title: Re: tax bill
Post by: Paul Coleman on July 16, 2011, 08:04:24 am
Already paid mine and have January's in the bank.
Ditto  ;)

Teacher's pets!

I'm similar to Gold, but I pay by standing order, not direct debit.  I can adjust my payments myself that way using interweb banking.

No just being prudent.

I recommend to startups that you only draw 50% of turnover and live off that. That way you always have money saved for Tax and emergencies.

That is pretty much the way I would do it but I would need to increase my turnover a fair bit for that to be possible.  Unfortunately I always seem to be chasing the pound in order to service the debt from past mistakes (in my personal life rather than business life).
What I actually do is have BACS payments into a separate account.  I did this because Santander stopped showing the references.  Those BACS payments do cover the tax and NI.  Unfortunately, I had to make a couple of draws on that money earlier in the year so it won't quite cover it this time.
I'm starting to lean towards Tosh or Gold's way of doing things but with a lower amount.  The payments wouldn't cover the full bill but would take the most difficult bit off it.  If, say, I were to BACS £100 - £150 a month to them that would make a decent dent in it.
Title: Re: tax bill
Post by: GB Window Cleaning on July 16, 2011, 09:08:01 am
thanks winpro  ;)
Title: Re: tax bill
Post by: Dougaldum on July 16, 2011, 03:29:17 pm
i don't mind the tax i pay it's the n.i that i pay which go's straight to the goverment for they luxury in life :-\
Title: Re: tax bill
Post by: Londoner on July 17, 2011, 10:04:18 am
My tax money is in the bank, I have a seperate account for it and pay the money in by standing order. The only way to be safe. Plus about £20 a week for a sickness/winter fund.
Title: Re: tax bill
Post by: mark dew on July 17, 2011, 07:23:46 pm
i don't mind the tax i pay it's the n.i that i pay which go's straight to the goverment for they luxury in life :-\

Do we have to pay this then?

I know it's the right thing to do but it isn't a legal requirement, i don't think.
Are their any advantages to ourself in paying this?
Title: Re: tax bill
Post by: Dougaldum on July 17, 2011, 07:42:44 pm
yes you do but it depens on how much make in the year