[Ryan @ Transparent, Carlisle]

Last year when i did my tax return, i managed to have clear accounts, ie my PROFIT was the same figure as my actual TAKINGS.

however, this year is a lot different, i know i have 4 months to think about it, but when i fill my tax return in, do i enter my PROFIT or my TAKINGS for the year? cheers

[formb]

I don't understand. Are you saying your profit was the same as your turnover? I e no expenses whatsoever.

[Ryan @ Transparent, Carlisle]

sorry i should of made myself more clear -

PROFIT FOR PERIOD (profit after expesnes)

NET CASH INFLOW (actual cash/cheques TAKING in)

[davids3511]

Ryan, you are best asking an accountant things like this. Advise from a forum can often be out of date or just plain wrong.

[formb]

Ryan, you are best asking an accountant things like this. Advise from a forum can often be out of date or just plain wrong.

Yea talk to a pro, he may well save you more than he charges.

[Ryan @ Transparent, Carlisle]

well, accountant, was my plans for 2011/2012. i just thought id try & do things myself for this year, then seek professional advise next year.

As it stands, going by PROFITS FOR PERIOD (06/04/2010 to present) my tax bill would be £152.71 upto now

[formb]

well, accountant, was my plans for 2011/2012. i just thought id try & do things myself for this year, then seek professional advise next year.

As it stands, going by PROFITS FOR PERIOD (06/04/2010 to present) my tax bill would be £152.71 upto now

Ouch.

[awcs]

phone hmrc they are really helpfull

[Ryan @ Transparent, Carlisle]

phone hmrc they are really helpfull

brilliant, why didnt i think of this before

[Handyman Window Cleaning Services]

i was told do do my accounts this way

TURNOVER =  all job invoice

to find profit you take away EXPENCES (invoiced, no necesseraly paid yet) and WRITTEN OFF jobs

Takings is cashflow based so to find that

=

cash colectted - cash spent


tax man would like to see cash flow and business activity.


i never knew that till last year, for 3 years i just show cash flow   :

[mikecam]

phone hmrc they are really helpfull

brilliant, why didnt i think of this before

Well it would be a better idea than telling us your profit was equal to your takings?
Seek proffesional help, doesnt seem like you have a clue. You very may wel have, i'm just saying its 'seems' like you don't.

[Ryan @ Transparent, Carlisle]

again, ive failed to explain myself clearly (pear cider no good for brain)

please, let me start again.

at april 5th 2010, i had NO DEBTS.

eg; my TURNOVER was lets say £6000,

my net cash INFLOW was also £6000,

meaning, i closed 2009/2010 accounts with no debts.

so imade & took in £6000, MINUS my expenses.

clearer now? or am i still too drunk

[mikecam]

again, ive failed to explain myself clearly (pear cider no good for brain)

please, let me start again.

at april 5th 2010, i had NO DEBTS.

eg; my TURNOVER was lets say £6000,

my net cash INFLOW was also £6000,

meaning, i closed 2009/2010 accounts with no debts.

so imade & took in £6000, MINUS my expenses.

clearer now? or am i still too drunk

No debts? Ok, you're trad !!!    You must have used some fairy liquid?!!!

[darren clarke]

you enter everything that your business as made as turn over

turn over - exthingyes = profit,  u pay tax on profit


did you do your accounts your self last year,  get them checked as it doesnt make sense

[davids3511]

again, ive failed to explain myself clearly (pear cider no good for brain)

please, let me start again.

at april 5th 2010, i had NO DEBTS.

eg; my TURNOVER was lets say £6000,

my net cash INFLOW was also £6000,

meaning, i closed 2009/2010 accounts with no debts.

so imade & took in £6000, MINUS my expenses.

clearer now? or am i still too drunk

Debts don't really have anything to do with it. The tax man wants to know your
1. turnover ie all the work you have done
2. Your expenses ie everything that is allowable that you have paid out.

Put simply subtract the two and you have your gross profit which is waht the tax man will base his assesment on.

It is in reality far more complicated than that.

[NJWindowCleaning]

How I understand taxes: lets say everything you earnt in the year was 12000 which is your turnover,

and so minus expense lets say 4000 inwhich equals 8000 this would be your profit,

but then you got capital agains to take off your profit  and then becomes smaller and not forgetting the tax man gives you 6450 tax free and anything left is what your pay tax on etc.

Hope this helps in some way.

[windiewasher]

heres me thinking you had 800 customers and took £500 a day,yet you got a rebate last year and this year so far only £100 for tax,i can see the tax man paying you a visit 

[Ryan @ Transparent, Carlisle]

when did i ever say i had 800 custys, and £500 a day?

would be nice though

[LWC]

How much you earned and how much you spent is what you should be putting through

[Frankybadboy]

this bloke was doing 70 houses a day between 3 of them only the other month,then post these sorts of figures,

do your maths lads.        : : : : : : :