Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Pole 2 Pole on January 02, 2010, 05:15:04 pm
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Just got my tax bill from my accountant. To cut a long one, my bill is higher than it's ever been this january and to be honest, it's screwed me for the next 4 or 5 months. Looking at what she's claimed for me, i think "i" could have been a bit more "inventive" for lack of a better word, than she was. Ok she's only forwarded expenses that i've submitted plus the usual "use of home for office" expenses. What "extras" does yours claim for, without you providing receipts? I think i may start up a D/D with the inland in the new year and get 2009's tax bill sorted early next year too, so i'll know what my bill will be with plenty of time to spare. But i'd be interested to hear what your accountant does for you. I'm a sole trader. Just me myself and I ;)
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Oh give me something to work on people ;D I'm using that trampoline to bounce this back up lol
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Mine sounds pretty similiar to yours to be honest, but I will be having an enquiring conversation with her some time this week, re: capital expenditure from the last financial year not appearing to be shown on this years return.
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i read something in widow-tolls forum that had never crossed my mind before but was very good.
claiming back on there dog, vets bills etc.
it was being claimed back as the dog was 'security'
pretty imaginative and impressed me lol ;D
ian
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i am sure i remember reading some where about the tax man is clampling down on what people can claim, on parts of there houses, did you claim all you can on mileage etc, i know as there years go buy u can can claim less on vehicles and equipment and if your making more money this might be why u get a high tax bill
when i had my plumbing business, i use to get a receipt for everything even papers, or food as can claim these back as a business expences
my mate use to have a very lazy accountant who use to do the bear miminum for them and still charge them top whack
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i read something in widow-tolls forum that had never crossed my mind before but was very good.
claiming back on there dog, vets bills etc.
it was being claimed back as the dog was 'security'
pretty imaginative and impressed me lol ;D
ian
I was told that you could only claim for an animal for security when you owned licensed premises.
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i am sure i remember reading some where about the tax man is clampling down on what people can claim, on parts of there houses, did you claim all you can on mileage etc, i know as there years go buy u can can claim less on vehicles and equipment and if your making more money this might be why u get a high tax bill
when i had my plumbing business, i use to get a receipt for everything even papers, or food as can claim these back as a business expences
my mate use to have a very lazy accountant who use to do the bear miminum for them and still charge them top whack
I don't claim milage. But this year, as just mentioned, i feel i'm paying £300 for summet i coulda done myself. But i loathe the self assessment online thingy so i guess it's almost worth it. My tax last year was pretty good, so i guess i was due to get shafted this year. It does seem to be good one year and buggered the next. So maybe next year i'll be ok. I just gotta learn not to be too complacent when i DO get a good year, cos i should know by now that i'll get whacked the following year.
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they will chase you for about 5 years now they know u r making money, claim mileage its about 40p a mile for first 4000 on each van then 10p after than
i got an aunty, who works for a company in liverpool, her company car is worth more than my house, its a choice between a 7 series bmw, porsche or something else depending on her mood, she claims for everything mileage, everything on a company credit card, why bother using your own when u can claim it back on tax and expences
when i had my plumbing business, i got a company credit card,/ bank card, and used it for everything that way it was a company expenses, fuel for both cars, cloths, small bits of shopping from asda, ie uniforms, washing powder to clean those uniforms, i claimed everything,
because the tax man says, if it is a company expense then it can be claimed back
as bad as it sounds, play stupid and go to ur local tax office and ask them what u can claim back, i started a business with the princes trust and they set u up a meeting with the tax man, and he basically tells you how to rip them off and he said to the people in our group, we know you will try and rip us off just dont do it stupidly, ie dont say u r earning £100 a week with a porsche sat on the drive
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Don't think you can claim food, as it is an expense you incur no matter what your situation is, and not a business expense.
Also remember that for vehicles, you can claim milage or expenses not both, and what ever way you go, you have to stick with that for the life time of that vehicle. if you change vans, then you can change how you claim for the new van.
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i read something in widow-tolls forum that had never crossed my mind before but was very good.
claiming back on there dog, vets bills etc.
it was being claimed back as the dog was 'security'
pretty imaginative and impressed me lol ;D
ian
I was told that you could only claim for an animal for security when you owned licensed premises.
We have a rotweiller that we claim as an expense for security. Food, vets bills, Does not need to be licenced. But if you have a poodle I am not sure if that would count as security.
Dave
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i am sure food comes under entertainment, of clients, take wife out for meal claim it back as entertaining clients to get a contract, all legal
the problem with accountants, is unless hey are dodgy or u r paying them loads, they will do the bear miminum, my mate got an accountant costs him 100 a year, all the bloke does is fill in 2 self assessment tax returns for it, for him, and businss partner
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i do my own tax return online and find it very easy. i dont earn a lot of money at all so i dont consider paying a accountant £200 odd is necessary for me but threads liek this are great for me as i get a little insider in to see what they do claim for as im sure i could probably claim for alot more than i do.
will only be my 2nd tax return next year so i may play it a little stupid and head to my local tax office and get them to give me a hand, im sure they'll show me a few tricks i didn't know
ian
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I would advise anyone who is liable for income tax to go Limited, you will find that there are many legal, tax loop holes, to kept your tax bill to a minimum.
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what does it mean and what are the advantages of being a ltd company?
thanks
ian
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what does it mean and what are the advantages of being a ltd company?
thanks
ian
A few of the benefits are you are not "self employed" anymore, instead you are an employee again which entitles you to social sercurity benefits like sick pay and such.
You also are allowed to take out tax free dividends, at the moment I think it is £26000 per year and you do not pay income tax or more importantly national insurance, so you can pay yourself a wage of £32000 which includes your personal allowances and you tax bill is zero.
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I think you forgot to mention corporation tax at 21% so your £32000 isn't tax free after all.
what does it mean and what are the advantages of being a ltd company?
thanks
ian
A few of the benefits are you are not "self employed" anymore, instead you are an employee again which entitles you to social sercurity benefits like sick pay and such.
You also are allowed to take out tax free dividends, at the moment I think it is £26000 per year and you do not pay income tax or more importantly national insurance, so you can pay yourself a wage of £32000 which includes your personal allowances and you tax bill is zero.
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This is true but the national insurance of 12.8% and rising is worth looking into
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Just want people to be aware that many of the benifits of being limited are no longer there, add to that vastly increased accountant fees corporation tax being at a higher rate than personal tax rates (for most), the advantages for a basic rate tax payer may not be worth the hastle of becoming ltd. I know a guy and he told me how much tax he saved in his first year but now he pays about the same amount of tax as me and he has large accountancy fees to add to this. One of the main reasons for going ltd should be to protect yourself from business liabilities (which are unlikely for self employed window cleaners, and basic tax rate payers) not to avoid tax though for some this can be a result.
But dont take my advice for it get independant advice from someone who will not benefit weather you go ltd or not.
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Just want people to be aware that many of the benifits of being limited are no longer there, add to that vastly increased accountant fees corporation tax being at a higher rate than personal tax rates (for most), the advantages for a basic rate tax payer may not be worth the hastle of becoming ltd. I know a guy and he told me how much tax he saved in his first year but now he pays about the same amount of tax as me and he has large accountancy fees to add to this. One of the main reasons for going ltd should be to protect yourself from business liabilities (which are unlikely for self employed window cleaners, and basic tax rate payers) not to avoid tax though for some this can be a result.
But dont take my advice for it get independant advice from someone who will not benefit weather you go ltd or not.
I totallly agree with you, each person is different and their tax liabilities vary from person to person.
You should always seek professional advise and any tax or legal matters.
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Remember, no matter what you put through your books, weather you use an accountant or not if you ever get an investigation the liability is YOURS!!!!!!
Any item that is incorrect WILL be found. Any expense not legit WILL be found, trust me ;)
You think you're clever? you don't know a thing!!!
Yeah, it all goes through now, it will, it's not now that matters, it only matters if you get the call from the IR. They will know within 5 minutes any discrepency & if they think this has been done to avoid tax (which is usually the case) they can go back through 6 years of your full accounts.
Unlike a court of law, you are deemed guilty untill YOU (fully at your time & expense) prove otherwise. Anything you can't prove you can be made to cough up for.
Then, you have to pay the tax (remember, this could be for 6 years worth of accounts) on any outstanding taxable income, plus interest on that tax. Then they can fine you of upto 100% of what the former two come to!!!!!!!!! :o
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they will chase you for about 5 years now they know u r making money, claim mileage its about 40p a mile for first 4000 on each van then 10p after than
i got an aunty, who works for a company in liverpool, her company car is worth more than my house, its a choice between a 7 series bmw, porsche or something else depending on her mood, she claims for everything mileage, everything on a company credit card, why bother using your own when u can claim it back on tax and expences
when i had my plumbing business, i got a company credit card,/ bank card, and used it for everything that way it was a company expenses, fuel for both cars, cloths, small bits of shopping from asda, ie uniforms, washing powder to clean those uniforms, i claimed everything,
because the tax man says, if it is a company expense then it can be claimed back
as bad as it sounds, play stupid and go to ur local tax office and ask them what u can claim back, i started a business with the princes trust and they set u up a meeting with the tax man, and he basically tells you how to rip them off and he said to the people in our group, we know you will try and rip us off just dont do it stupidly, ie dont say u r earning £100 a week with a porsche sat on the drive
hello daz, im not picking at your post but its defo 40p on the first 10.000 miles.you could be paying too much tax yourself unless i read this wrong.
Statutory Mileage Rates
The government has established 'statutory mileage rates', which determine the acceptable amount that can be paid to an employee per mile of business travel. These rates differ depending on the vehicle used, and the number of miles for which a claim is being made. For business travel in cars, the first 10,000 miles can be paid at 40 pence per mile, and all subsequent miles at 25 pence per mile; travel on a motor cycle or bicycle, regardless of the number of miles travelled, can be paid at 20 and 40 pence per mile respectively