Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Sir Squeaky on January 12, 2009, 10:58:22 pm
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I've just filled in my form, and it's telling me my first payment is 3 times what it should be, due to paying "on account for 2008/9"
Now I did this last year, why hasn't what I paid on account last time come off this payment?
Why are they trying to take twice as much each year?
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Thats the joy of not having an accountant.
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Thats the joy of not having an accountant.
What's that got to do with?
He can't decide what they do.
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As I paid something like £800 on account last year, then that should come off this years, but it hasn't.
I'm going to have to knock on their door in Newport. >:(
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Put it like this. Last year I was late filing my tax return and taxman sent me a fine for £100. I told my accountant and fine disappeared.
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It doesnt work like that Im afraid Squeaky. If that amount was taken off this years bill you wouldnt have any on account anymore would you.
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OMG lol squeaks I cant believe u r still moaning. ;D
If u have an accountant he/she will sort all that out so it wont filter down to you.
I pay mine £320 a year (in installments) and he just rings me every now and then to get earnings info to stop inland rev asking for more than i need to pay. ;)
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The amount on your bill doesn't include payments for 2008/09
The extra 'payment on account' you paid last year will be marked 'payment for tax year 2008/09'
Meaning you may have paid off a chunk of what they say you owe!
:)
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Why do you wait till the last minute anyway, you did this last year? :P
mine was done last april.
Tony
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The amount on your bill doesn't include payments for 2008/09
The extra 'payment on account' you paid last year will be marked 'payment for tax year 2008/09'
Meaning you may have paid off a chunk of what they say you owe!
:)
No it hasn't come off.
But... say my profit was £7000, they are taxing me nearly £1500 (that's almost 25%)
So nothing has come off from last year.
Also they want another £750 now and again in July.
Now I expected to have to make two payments, but it shouldn't be as much.
What's the point of paying on account if it makes no difference.
As far as I'm concerned they've stolen that money.
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Why do you wait till the last minute anyway, you did this last year? :P
mine was done last april.
Tony
Because it's never usually a problem.
I find out what Robin Hood wants, I write a cheque.
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Do you do it online Squeaky?
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The amount on your bill doesn't include payments for 2008/09
The extra 'payment on account' you paid last year will be marked 'payment for tax year 2008/09'
Meaning you may have paid off a chunk of what they say you owe!
:)
No it hasn't come off.
I'm using b*llocks figures here to save critcism either way...
But... say my profit was £7000, they are taxing me nearly £1500 (that's almost 25%)
So nothing has come off from last year.
Also they want another £750 now and again in July.
Now I expected to have to make two payments, but it shouldn't be as much.
What's the point of paying on account if it makes no difference.
As far as I'm concerned they've stolen that money.
I have an accountant but have you allowed another 8% for class 4 NI?
Tony
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Why do you wait till the last minute anyway, you did this last year? :P
mine was done last april.
Tony
Because it's never usually a problem.
I find out what Robin Hood wants, I write a cheque.
Roger it's a problem for you every year!
Crikey; you only paid £800 on account! That figure would have been based on your previous years tax returns!
Seven years ago I was paying over half that amount every month in tax and NI!
Seriously though; why leave it till the last possible moment? Last year you had problems doing it online. The year before that you had problems paying your tax bill.
I did 07/08 months ago; purposely so it didn't prey on my mind; and now I'm preparing for 08/09; I'm in credit because I pay by standing order; it'll be in and paid for by the end of April 09.
You don't need an accountant; that's for people who don't understand how it works; you just need to get organised!
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The amount on your bill doesn't include payments for 2008/09
The extra 'payment on account' you paid last year will be marked 'payment for tax year 2008/09'
Meaning you may have paid off a chunk of what they say you owe!
:)
No it hasn't come off.
I'm using b*llocks figures here to save critcism either way...
But... say my profit was £7000, they are taxing me nearly £1500 (that's almost 25%)
So nothing has come off from last year.
Also they want another £750 now and again in July.
Now I expected to have to make two payments, but it shouldn't be as much.
What's the point of paying on account if it makes no difference.
As far as I'm concerned they've stolen that money.
I have an accountant but have you allowed another 8% for class 4 NI?
Tony
I'll work that one out in a bit...
Still sound ridiculously high.
I've got nearly £3500 of van payments coming off my profit, and it's still over double last year.
I haven't paid that much more in.
How does that make any sense? ???
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Why do you wait till the last minute anyway, you did this last year? :P
mine was done last april.
Tony
Because it's never usually a problem.
I find out what Robin Hood wants, I write a cheque.
Roger it's a problem for you every year!
Crikey; you only paid £800 on account! That figure would have been based on your previous years tax returns!
Seven years ago I was paying over half that amount every month in tax and NI!
Seriously though; why leave it till the last possible moment? Last year you had problems doing it online. The year before that you had problems paying your tax bill.
I did 07/08 months ago; purposely so it didn't prey on my mind; and now I'm preparing for 08/09; I'm in credit because I pay by standing order; it'll be in and paid for by the end of April 09.
You don't need an accountant; that's for people who don't understand how it works; you just need to get organised!
Well obviously, but with everything else going on, it just doesn't happen.
They wouldn't let me pay direct debit either.
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Well obviously, but with everything else going on, it just doesn't happen.
Now you know that's rubbish; you've got to do it at some stage; and you know you could've done it earlier if you'd had made the effort; you're not telling me you couldn't have spent a day-or-two doing it when you've been rained/frozen off?
Look, get your paper self assessment form and read it. In there it will tell you how your tax is caluclated; I've just been looking for mine; the notes; but can't find it at the moment.
But go through it carefully with a cup of coffee; it's easy.
Once you work it out, if your total tax bill for 07/08 is for eg. £1000 and you've paid £800 on account, then you owe £200, but will have to pay on account for 08/09 another £1000 in two installments. Does that make sense?
Get your tax statements together too; go through them; however it is possible they've made a mistake, but I doubt it; but it'll be a bugger trying to get through to the self-assessment help-line at this time of year.
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Rog if you've internet banking you can pay your tax bill by standing order using the tax man's account and using your UTR as a reference.
It works and I do it.
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it should be esay i fill in the quick form if earning less than 15000.
put in your gross earnings lets say 6000,then take out your outgoings say 2000 pound leaves you 4000 pound your taxs bill then is 4000 pound tax bill 0 done.
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Well it's simple.
I've been asked for 3 times what I'd put aside for, so I can't pay it.
No wonder people hate them.
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Rog
You still have another 18 days to find the money, it happens to us all.
One thing to consider when you are self employed is not to live from hand to mouth and always have some contingency fund in place.
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Well it's simple.
I've been asked for 3 times what I'd put aside for, so I can't pay it.
No wonder people hate them.
Is that correct though? Have you worked it out?
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Ha ha! Yes!
Just rang them, and they said the online form doesn't take into account payments on account from last year.
He told me what to take off from last year.
So I can deduct nearly 60% of the bill!
The total now is perfectly managable.
Pays to check up on these things... :)
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No problem
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But... say my profit was £7000, they are taxing me nearly £1500 (that's almost 25%)
So nothing has come off from last year.
Also they want another £750 now and again in July.
Now I expected to have to make two payments, but it shouldn't be as much.
What's the point of paying on account if it makes no difference.
As far as I'm concerned they've stolen that money.
Squeaks,
If your profit was £7000 minus your personal allowance of £5225 = £1775 taxable earnings.
Because the government reintroduced the 10% tax band, the next £2230 of profit is at 10%. (as opposed to 22%)
So 10% of your taxable earnings is £177.50
Also Cat 4 NI which is 8% of £1775 = £142
So your total tax liability should be £177.50 add £142 = £319.50
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I meant taxable profit after allowances!
Those weren't real figures anyway, just proportional made-up ones.
Doesn't matter anyway, it's sorted now.
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Well don't leave it so late next time and find out how to work it out yourself; then you won't be flapping so much!
;D
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Flapping?
I nearly took off! ;D
Anyway, i'd better do some work to pay my new smaller tax bill!
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What did I tell you?
::)
I was trying to help people after people were so helpful with my pump problems.
;)
I asked if you were online because on your main page their is a 'current status' which says xxxx amount needs paying.
Click on that and it gives you two amounts - your payment for January and your payment for July.
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There'll be guys on this forum who'll state they're 'whiter than white', but I bet if I audited their books and followed them about for a month; I'd be able to pick holes in them; as the tax man could with me; no doubt.
What about making adjustments for using a work van for private use? You should; in theory; even though the administration for accounting for that would be a pain.
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There'll be guys on this forum who'll state they're 'whiter than white', but I bet if I audited their books and followed them about for a month; I'd be able to pick holes in them; as the tax man could with me; no doubt.
What about making adjustments for using a work van for private use? You should; in theory; even though the administration for accounting for that would be a pain.
But what about the occasion you use the family car to go collecting - "swings and roundabouts" - surely?
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i have put a post on here or on the other forum about accountants just paid my old one off
accounts just gone in i started them in may when i get bank statment for apr
i like to have that taken care of by a proffesonale but as i said befor keep all your letters
allways mine cost me £751.44 this year but could have cost 30000 plus
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But what about the occasion you use the family car to go collecting - "swings and roundabouts" - surely?
No, you can account for that too.
As I say, the administration of it could be a pain, but the principles of what you're taxed on remain the same; 'it's all to complicated and difficult' isn't an excuse.
My point is, there's not many people who don't fiddle their taxes in some way; even if it is purely from avoiding doing anal administrative tasks.
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What about making adjustments for using a work van for private use? You should; in theory; even though the administration for accounting for that would be a pain.
I went to see Gerald Lee the head tax inspector at Pontypool a couple of years ago, as I had quite a few questions.
I told him that I had deducted private use for my van, he asked me why?
I told him that there would be times when I would pickup milk etc. He said " We are not interested in such things put 100% of your works Van".
Roy
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I went to see Gerald Lee the head tax inspector at Pontypool a couple of years ago, as I had quite a few questions.
I told him that I had deducted private use for my van, he asked me why?
I told him that there would be times when I would pickup milk etc. He said " We are not interested in such things put 100% of your works Van".
Roy
Roy, a tax investigation is nothing more than an AUDIT. I've been audited many times in a previous occupation.
Basically what happens is someone sits down and goes through your books and will write down 'observations' which are basically questions asking why you've done various stuff.
Some auditors have their own area of excellence; others have their own peculiarities.
But using a work vehicle for private use and claiming expenses for it is obviously not right.
Why should I; as a tax-payer; fund your fuel, wear and tear of your vehicle, for you to go and do your own private stuff?
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I hope no one thinks I'm whiter-than-white when it comes to my own tax submisions mind!
;D
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I told him that I had deducted 15% private use as my accountants allways had.
He told me no claim 100%.
I do agree with you, but he did say it so I claim 100% now.
I have rung him many times and he is allways helpfull, I got pulled about 12yrs ago. And after a week they sent me a letter say the had concluded there investigation.
Time for another I expect.
Roy
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I told him that I had deducted 15% private use as my accountants allways had.
He told me no claim 100%.
I do agree with you, but he did say it so I claim 100% now.
I have rung him many times and he is allways helpfull, ....
Roy
Roy,
I think you've answered the question yourself. We're not all whiter-than-white; your latest accountant is just a bit cheekier than your previous ones; in your favour!
Of course he's helpfull; he wants your business; it only takes him ten minutes to input the figures you give him onto your tax return; then charges you £200 for it.
I doubt even you can clean £200 quids worth of work in ten minutes; while having a coffee at the same time!
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I doubt even you can clean £200 quids worth of work in ten minutes; while having a coffee at the same time!
I doubt it too.
Roy rarely does much more than £150 in ten minutes. ;D
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I went to see Gerald Lee the head tax inspector at Pontypool a couple of years ago, as I had quite a few questions.
I told him that I had deducted private use for my van, he asked me why?
I told him that there would be times when I would pickup milk etc. He said " We are not interested in such things put 100% of your works Van".
Roy
Roy, a tax investigation is nothing more than an AUDIT. I've been audited many times in a previous occupation.
Basically what happens is someone sits down and goes through your books and will write down 'observations' which are basically questions asking why you've done various stuff.
Some auditors have their own area of excellence; others have their own peculiarities.
But using a work vehicle for private use and claiming expenses for it is obviously not right.
Why should I; as a tax-payer; fund your fuel, wear and tear of your vehicle, for you to go and do your own private stuff?
If you have a car as well as a van then offsetting 100% is no problem. In fact, it may even be possible to offset a bit of private car usage too if you prefer to use it for certain quotatrions etc if it would be better for marketing than a work van. I only have the van for transport so it is 85% business and 15% private. I use those proportions all the way down the line with the van - including the capital allowances for it and even the loan interest. It would be pretty daft to say that you NEVER used the van for private use when it's the only vehicle available.
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do you pa 8% class 4 nics if you are self employed thought i just had to pay quartely (£2.20 a week) just written to tax man and told him to shove his class 4 . bet thats just got me a hol at her majestys pleasure lol
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do you pa 8% class 4 nics if you are self employed thought i just had to pay quartely (£2.20 a week) just written to tax man and told him to shove his class 4 . bet thats just got me a hol at her majestys pleasure lol
Yes there is an extra NI payment once your profit margin climbs above a certain level (somewhere around the area where you start paying tax). I think it's 8%. It does (in theory) pay for your state pension and any NHS "care". Don't know why you have a problem with it as the alternative is to rely on private medical insurance. Not everyone can get that.
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Well, I have just had my tax bill and it's a grand more than I expected.
The accountant is taking the micky too, over £300 just to put the figures down on the tax return.
It won't happen next year, I am about to cut my hours dramatically.
Trading as a sole trader, not being able to claim a personal allowance for my wife as she no longer works with me, and paying tax on my state pension.
The accountant has only allowed me £315.00 for the use of a room as an office, telephone, heating, water the lot. They won't be getting my form to fill in next time.
Is it all worth it? May just as well retire and claim every thing I can.
I am in dispute with the pension service as they have only paid me pension as a single guy. They admit that I am entitled to claim as a couple, but only want to back date it 3 months. I have been 65 since September 2007, they made a balls of it, and I'm the one that suffers.
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Well, I have just had my tax bill and it's a grand more than I expected.
The accountant is taking the micky too, over £300 just to put the figures down on the tax return.
Dai,
You're obviously a bright bloke who can read and write; so get the book 'Self Assessment for the Self Employed'; it'll be in your local library!
A sole trading window cleaner does not require an accountant; and not only that, doesn't your Missis fill your barrels and check your TDS readings? I bet she washes your scrims too and does other business related stuff?
She's got a tax allowance you know! ;)
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Well, I have just had my tax bill and it's a grand more than I expected.
The accountant is taking the micky too, over £300 just to put the figures down on the tax return.
Dai,
You're obviously a bright bloke who can read and write; so get the book 'Self Assessment for the Self Employed'; it'll be in your local library!
A sole trading window cleaner does not require an accountant; and not only that, doesn't your Missis fill your barrels and check your TDS readings? I bet she washes your scrims too and does other business related stuff?
She's got a tax allowance you know! ;)
Tosh they have got me over a barrel too, as my Mrs is in her early thirties I can claim a pension as a couple if she is not working, the moment she pays class 2 contributions I can only claim a pension for myself, her pension is worth £2500 a year. As a business partner we could claim £6035 for my wife's personal allowance, that would save me £1327 in tax so I am £1173 a year better off with getting a pension as a couple.
There is a possibility of employing her as casual labour to fill my barrels, I have to find out how much she can earn before the pension is affected.
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I have just checked up on this, you can pay your Mrs up to £90 per week to do any work for you, as long as she is not working elsewhere, there is no liability for her to pay either tax or national insurance contributions on this money. This would amount to £4500 a year off your tax liability, this works out as a saving to you of £990 at the standard rate. Better in your pocket than the tax mans.
If your Mrs/partner is not working, who looks after your RO unit during the day?