Clean It Up

UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: ollie on December 03, 2008, 03:22:03 pm

Title: You know your prices are wrong when...
Post by: ollie on December 03, 2008, 03:22:03 pm
An accountant hands over a cheque for £25 more than you quoted and says "you're not charging enough"!!!  Who said they were tight??!!
Title: Re: You know your prices are wrong when...
Post by: Bob Robertson on December 03, 2008, 07:47:43 pm
When paying the accontants fee ,give them £25 less and say you charge too much  :D
Title: Re: You know your prices are wrong when...
Post by: ollie on December 03, 2008, 07:52:36 pm
I should get one actually instead of getting depressed everytime I look at my huge pile of receipts, and my small pile of invoices!
Title: Re: You know your prices are wrong when...
Post by: mark_roberts on December 03, 2008, 08:58:51 pm
Got my accountants bill today for £800 so i might try that.

Mark
Title: Re: You know your prices are wrong when...
Post by: craigp on December 03, 2008, 09:58:10 pm
I do my own accounts takes 3 hrs ish.

Some say a good account saves you money overall, but how! its nonsense, your expenses are your expenses and your incomes your income, they dont change with any accountant, unless YOU miss out expenses you should claim for.

 
Title: Re: You know your prices are wrong when...
Post by: russell james on December 03, 2008, 10:10:46 pm
thats only true if you know all the ins and outs, which i dont unfortunately, my accountants only £200 a year, been using her 6 years now, and saved me thousdands that i would not have put on my return if i were doing it myself
Title: Re: You know your prices are wrong when...
Post by: Doctor Carpet (Ret'd) on December 03, 2008, 11:02:04 pm
........so my accountant said "Go Limited. Pay yourself a dividend as opposed to a wage and hey presto, you've just saved 11% off your tax bill because you don't pay NI on dividends"

Now that has saved me at least the cost of my accountants bill. :) :) :)
Title: Re: You know your prices are wrong when...
Post by: clinton on December 04, 2008, 07:35:56 am
Hi roger

Good post

So are you def going ltd roger ???

Title: Re: You know your prices are wrong when...
Post by: craigp on December 04, 2008, 09:06:31 am
Don't you have to pay corperation tax then though?
Title: Re: You know your prices are wrong when...
Post by: Doctor Carpet (Ret'd) on December 04, 2008, 05:19:07 pm
Yes
Title: Re: You know your prices are wrong when...
Post by: derek west on December 04, 2008, 05:22:05 pm
craig, do you use your car for work as well as your van?
derek
Title: Re: You know your prices are wrong when...
Post by: kelly acs on December 04, 2008, 06:30:01 pm
I should get one actually instead of getting depressed everytime I look at my huge pile of receipts, and my small pile of invoices!

lol i know how ou feel there!
Title: Re: You know your prices are wrong when...
Post by: Kane on December 04, 2008, 10:38:17 pm
I know some one who used a account named Tony Slan .. beware for 4 years i fount out he was over charging by £200  :o
Title: Re: You know your prices are wrong when...
Post by: Shaun_Ashmore on December 04, 2008, 10:45:58 pm
What's teh difference between a wage and a dividend?

Shaun
Title: Re: You know your prices are wrong when...
Post by: russell james on December 04, 2008, 10:52:40 pm
dont think the dividend is taxable (or am i wrong?)
Title: Re: You know your prices are wrong when...
Post by: AJB on December 04, 2008, 11:37:02 pm
Dividends are taxable, which ever way you try to paint it, they are income,
usually at 10% until your 10%  tax allowance is used up. then at your normal
rate, so no difference to a wage.
Title: Re: You know your prices are wrong when...
Post by: AJB on December 04, 2008, 11:44:25 pm
In response to the original heading, you know your prices are too low
when Mrs Patel says "Oh that's very reasonable"
Title: Re: You know your prices are wrong when...
Post by: Ricky M on December 05, 2008, 06:57:41 am
In response to the original heading, you know your prices are too low
when Mrs Patel says "Oh that's very reasonable"

True very True PMSL

Ricky
Title: Re: You know your prices are wrong when...
Post by: Doctor Carpet (Ret'd) on December 05, 2008, 08:33:08 am
In response to the original heading, you know your prices are too low
when Mrs Patel says "Oh that's very reasonable"
Couldn't agree more ;D

Corporation tax and income tax for small companies are being brought in line so that to all intents and purposes they are effectively the same. However the original point is still true; there is no NI (national insurance) to pay on dividends but are payable on wages/profits in sole traders and partnerships.

The difference between a dividend and a wage is that a wage is earned income whilst a dividend is investment income. The reason why it is effectively the same for a limited company which has one worker and one owner (ie. us) is that the worker generates the income but as the owner we can choose how we then remunerate ourselves (wages or dividend).

My wage last year was £5328 (near the tax free allowance) and the rest of my overall income was considerably more but paid as a dividend.

Hope the explanation helps.

Roger
Title: Re: You know your prices are wrong when...
Post by: Neil Williams on December 05, 2008, 10:53:07 pm
In response to the original heading, you know your prices are too low
when Mrs Patel says "Oh that's very reasonable"

Or as happened today with the initial quote of £147 and asked for an extra bedroom to be cleaned. When it came to paying up time I said let's call it £170.
Lady customer goes "No here you go £200"
Not a bad half mornings work!