Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Tristan R Clean on March 03, 2021, 12:09:19 pm

Title: Budget Tax bracket
Post by: Tristan R Clean on March 03, 2021, 12:09:19 pm
As the  tax thresholds are about to be frozen.
My question is do some of you sole traders
purposely stay below the £50 000 bracket to avoid paying the 40% above the threshold?

Or , Are you not bothered and take the hit and view anything as extra no matter the tax

T
Title: Re: Budget Tax bracket
Post by: Slacky on March 03, 2021, 01:34:39 pm
There’s nothing like dropping bait....
Title: Re: Budget Tax bracket
Post by: deeege on March 03, 2021, 01:35:41 pm
There must be quite a few of the fellas on here that have this problem, the ones doing £400+ days. Be interesting to see if any of them have any advice for you.....
Title: Re: Budget Tax bracket
Post by: AuRavelling79 on March 03, 2021, 01:40:10 pm
It's only tax on the band above 50k so it makes little difference if earnings were say 55k. (although it would affect SEISS eligibility)

Vat threshold is the only one worth thinking about IMO.
Title: Re: Budget Tax bracket
Post by: KS Cleaning on March 03, 2021, 03:25:21 pm
The threshold in Scotland  is £43 662 then you’re on to 41% tax, myself and my wife both go into the higher tax band, had we lived south of the border our combined tax liabilities would have been around £1500 less😢
Title: Re: Budget Tax bracket
Post by: deeege on March 03, 2021, 03:27:51 pm
The threshold in Scotland  is £43 662 then you’re on to 41% tax, myself and my wife both go into the higher tax band, had we lived south of the border our combined tax liabilities would have been around £1500 less😢

Nicola Sturgeons phoney investigations into the former first minister don’t pay for themselves y’know.
Title: Re: Budget Tax bracket
Post by: KS Cleaning on March 03, 2021, 03:48:49 pm
The threshold in Scotland  is £43 662 then you’re on to 41% tax, myself and my wife both go into the higher tax band, had we lived south of the border our combined tax liabilities would have been around £1500 less😢

Nicola Sturgeons phoney investigations into the former first minister don’t pay for themselves y’know.
🤣🤣 
The former first minister is a sleazebag🤮because he got found not guilty doesn’t mean he didn’t do it...then he has the nerve to cry wolf🤬
Title: Re: Budget Tax bracket
Post by: Don Kee on March 03, 2021, 05:18:38 pm
Don’t see what the issue is, you only pay the 40% on profits over the £50k bracket.

You still earn more.
Title: Re: Budget Tax bracket
Post by: KS Cleaning on March 03, 2021, 05:25:57 pm
Don’t see what the issue is, you only pay the 40% on profits over the £50k bracket.

You still earn more.
That’s true, but it is galling when you take on a new house at lets say £20 and you know you are only going to be keeping £10 of that.
Title: Re: Budget Tax bracket
Post by: Martin Lane on March 03, 2021, 06:16:42 pm
if you constantly worry about going over the vat limit or paying 40% tax then you will never grow your business, 40% is a bit unfair as you are penalizing people for working hard but thats life
One the other hand you also save 40% of  things like new vans and Systems depending on what you earn

Martin
Title: Re: Budget Tax bracket
Post by: Mike Burd on March 03, 2021, 06:39:29 pm
Don’t see what the issue is, you only pay the 40% on profits over the £50k bracket.

You still earn more.
That’s true, but it is galling when you take on a new house at lets say £20 and you know you are only going to be keeping £10 of that.
Get them to pay cash and keep it all.
Title: Re: Budget Tax bracket
Post by: KS Cleaning on March 03, 2021, 06:57:41 pm
Don’t see what the issue is, you only pay the 40% on profits over the £50k bracket.

You still earn more.
That’s true, but it is galling when you take on a new house at lets say £20 and you know you are only going to be keeping £10 of that.
Get them to pay cash and keep it all.
Now why didn’t I think of that🤔
Title: Re: Budget Tax bracket
Post by: Stoots on March 03, 2021, 07:50:35 pm
I would say if you are at that point then go Ltd
Title: Re: Budget Tax bracket
Post by: Mike Burd on March 03, 2021, 09:25:37 pm
I would say if you are at that point then go Ltd
I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.
Title: Re: Budget Tax bracket
Post by: Stoots on March 03, 2021, 09:46:58 pm
I would say if you are at that point then go Ltd
I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.

Depends on profit level.

Think they said 25% on 50k profit or over, so im assuming that will be profit not turnover. Which in that case most window cleaners under VAT should be ok.

I will go back to sole trader if im affected, not paying 25%, especially since i never took a penny of help.
Title: Re: Budget Tax bracket
Post by: Mike Burd on March 04, 2021, 05:13:40 am
I would say if you are at that point then go Ltd
I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.

Depends on profit level.

Think they said 25% on 50k profit or over, so im assuming that will be profit not turnover. Which in that case most window cleaners under VAT should be ok.

I will go back to sole trader if im affected, not paying 25%, especially since i never took a penny of help.
I’d actually forgotten that bit. I’ll wait for the accountant’s advice. I’m assuming the 25% will only be on profit over £50k so I guess we’ll need to take bigger salaries to keep profits below £50k.
Title: Re: Budget Tax bracket
Post by: LBWCS on March 04, 2021, 07:26:59 am
I would say if you are at that point then go Ltd
I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.
A d I think turn over has to be over 250k
Title: Re: Budget Tax bracket
Post by: deeege on March 04, 2021, 07:30:42 am
I would say if you are at that point then go Ltd
I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.
A d I think turn over has to be over 250k

Anyone with 3 or 4 vans or more would be over both the £250k turnover and £50k profit threshold, depending how they reinvest of course.
Title: Re: Budget Tax bracket
Post by: NWH on March 04, 2021, 05:20:49 pm
Unless they are franchising then they are staying under it 🤣🤣🤣
Title: Re: Budget Tax bracket
Post by: deeege on March 05, 2021, 06:15:54 am
Unless they are franchising then they are staying under it 🤣🤣🤣

Have you come to terms with the corporation tax rise yet? Having 3 staff, 4 vans and the prices that you charge you must be over the £250k T/O and £50k  threshold?
Title: Re: Budget Tax bracket
Post by: NWH on March 05, 2021, 02:08:51 pm
I wouldn’t need 4 vans to be earning 250k at my prices m8 have you been thinking about me again have you I can feel that you have,
Title: Re: Budget Tax bracket
Post by: deeege on March 05, 2021, 07:19:39 pm
I wouldn’t need 4 vans to be earning 250k at my prices m8 have you been thinking about me again have you I can feel that you have,

You said last week that you have 3 staff all in their own vans. Talking 💩💩 as usual.
Title: Re: Budget Tax bracket
Post by: davids3511 on March 05, 2021, 07:41:13 pm
I would say if you are at that point then go Ltd
I don’t think that’s necessarily good advice now. I’d bet with 25% corporation tax, 7.5% dividend tax plus the accountancy costs, I’d stay sole trader.
If I was earning 250k I wouldn't be too bothered about an extra 5% corp tax. Up to 50k and it's still 19%.
Title: Re: Budget Tax bracket
Post by: davids3511 on March 05, 2021, 07:46:20 pm
Unless they are franchising then they are staying under it 🤣🤣🤣

Have you come to terms with the corporation tax rise yet? Having 3 staff, 4 vans and the prices that you charge you must be over the £250k T/O and £50k  threshold?
Where are you getting 250k turn over, it's 250k profit to be taxed at 25% from what I can see.
Title: Re: Budget Tax bracket
Post by: NWH on March 05, 2021, 07:51:19 pm
I wouldn’t need 4 vans to be earning 250k at my prices m8 have you been thinking about me again have you I can feel that you have,

You said last week that you have 3 staff all in their own vans. Talking 💩💩 as usual.

What’s the matter with you wanting to know all my business ok I’ve got a big house no mortgage and a rich wife,listen times are hard yeah very soon I’ll be having to make tuff decisions AMG BMW-M variant or an Audi RS variant.
There’s no way I’m travelling up to Scotland 🏴󠁧󠁢󠁳󠁣󠁴󠁿 to see KS on the train,at least I’ll have some sort of comfort on the way up he’s making me sleep in his shed although I might just kip in the car surrounded by leather.
If you’d like I can pick you up on the way from you’re caravan park where you live and you can blow me all the way up the M6 what do ya reckon,I used to have girls like you at school that used to pinch me and run away coz they liked me really you no what I mean m8 don’t you.
🤣🤣🤣🤣🤣🤣🤣🏴󠁧󠁢󠁳󠁣󠁴󠁿🏴󠁧󠁢󠁳󠁣󠁴󠁿🏴󠁧󠁢󠁳󠁣󠁴󠁿🏴󠁧󠁢󠁳󠁣󠁴󠁿🏴󠁧󠁢󠁳󠁣󠁴󠁿🏴󠁧󠁢󠁳󠁣󠁴󠁿🏴󠁧󠁢󠁳󠁣󠁴󠁿🏴󠁧󠁢󠁳󠁣󠁴󠁿🏌️‍♂️🏌️‍♂️🏌️‍♂️🏌️‍♂️🏌️‍♂️🏌️‍♂️🏌️‍♂️🏌️‍♂️🏌️‍♂️🏌️‍♂️🏌️‍♂️
Title: Re: Budget Tax bracket
Post by: deeege on March 05, 2021, 08:04:50 pm
Unless they are franchising then they are staying under it 🤣🤣🤣

Have you come to terms with the corporation tax rise yet? Having 3 staff, 4 vans and the prices that you charge you must be over the £250k T/O and £50k  threshold?
Where are you getting 250k turn over, it's 250k profit to be taxed at 25% from what I can see.

It’s actually £50k upto £250k profit, it tapers from 19% to 25%.
Title: Re: Budget Tax bracket
Post by: NWH on March 05, 2021, 08:37:51 pm
You need to concentrate on what you’re doing m8 the only pound you want to worry about is the one in you’re pocket,do you ever think you’ll need to worry about those kind of figures lol.
Title: Re: Budget Tax bracket
Post by: deeege on March 05, 2021, 08:41:36 pm
You need to concentrate on what you’re doing m8 the only pound you want to worry about is the one in you’re pocket,do you ever think you’ll need to worry about those kind of figures lol.

I’ve personally built 2 business that far exceed those figures thanks mate. Non were handed down on a plate from daddy either.
Title: Re: Budget Tax bracket
Post by: NWH on March 05, 2021, 09:15:12 pm
Ah ok I see lol you’ll know that the £ in the pocket at the end of the day is all that matters then.