[paul marshall]

i might be crossing the line here gang , so i wont be offended if i dont get any replies , BUT i was just wondering if anyone would give me some idea of the tax bill they paid in first year and second and so on , my first bill is due this april and im trying to do everything by the book , [ put some away each week etc ] people are saying with price of van , brodex system etc that i wont pay much , but when starting my buisness this was the main worry i had about tax and acounts etc and as april aproaches it still seems as daunting as ever , i realise some may not want to really discus this on a forum , so as i said no worrys if i get no joy 

[bobplum]

it all depends on turn over and expenditure paul
depending on that the tax man may owe you

[ICS Cleaning]

Hi Paul,

I do everything by the book to, What is it your worried about, anything over £8,105 is taxable at 20% + your NI, MY ACCOUNTANT always says take out 30% of your over all income and youll be owed money back at end of year.

[Mike #1]

After expenses if your earnings are £16,000 expect to pay in the region of £4,000. Mike

[Ian101]

I can only speak for myself but year 1 I got a refund        year 2 small tax bill

[paul marshall]

right lets keep it simple [ yeath yeath i know ] if i earned 500 pound every week [ bar 2 ] that would be 25 grand a year , i can earn lets say 9000 , so that leaves my taxable income at 16000 and if i spent 6 grand a year on tools , diesal etc that would make my taxable income 10 grand , so 20 percent of that would be 2 grand ,so my tax for that year would be 2 thousand pounds , is that more or less it or am i wrong [ i often am ] 

[♠Winp®oClean♠]

I can't advise on how much you may have to pay but.....

 here's my advice for the section on your tax return that asks-

   "Do you have anyone dependent on you?"

2.1 Million illegal immigrants
1.1 Million crackheads
4.4 Million un-employable Jeremy Kyle scroungers
900,000 criminals in over 85 prisons
650 Idiots in parliament & the whole of the European Commission!
 

[Dave Willis]

Don't forget at some point you will be put on Tax By Account which means you pay twice a year instead of once. The first time this happens will be a shock to the system. Probably best to use an accountant if you can afford it.

[CF Facilities]

I am in my first year too so in the same boat. I thought that I cannot offset my van and pole system off my income in year one but only 25% for tthe next four years as this is capital expenditure. Does this sound about right.

[deeege]

I can only speak for myself but year 1 I got a refund        year 2 small tax bill

This +1 due to start up expenses (van, system etc) being tax deductible.

[Amazin]

I can't advise on how much you may have to pay but.....

 here's my advice for the section on your tax return that asks-

   "Do you have anyone dependent on you?"

2.1 Million illegal immigrants
1.1 Million crackheads
4.4 Million un-employable Jeremy Kyle scroungers
900,000 criminals in over 85 prisons
650 Idiots in parliament & the whole of the European Commission!
 

  hahahaha

[Steve Sed]

I am in my first year too so in the same boat. I thought that I cannot offset my van and pole system off my income in year one but only 25% for tthe next four years as this is capital expenditure. Does this sound about right.

Yes you can.

[TomCrowther]

Get a good accountant and he will save you thousands. Year one I got a refund {used to be a high earner}. year 2 small tax bill etc. Now paying twice a year and January is a pain.
Keep an accurate record of all your expenditure. Get a file/folder for each month and staple receipts together with the bank statement for the month. End of each quarter do a quick sum re turnover-costs and then you will have a pretty good idea how much tax will be due at the end of the year. The accountant will sort out all your allowances and what have you. Won't come as a shock this way.

[CF Facilities]

I am in my first year too so in the same boat. I thought that I cannot offset my van and pole system off my income in year one but only 25% for tthe next four years as this is capital expenditure. Does this sound about right.

Yes you can.

Sorry but yes you can what? Offset all expenses in year one? My wc mate was told by his accountant to change van every four years.

[LBWCS]

How much you earn minus 8k minus expenses and 29% of that is tax. If its over £1000 you will be expected to pay half of the next years bill in advance

[Steve Sed]

I am in my first year too so in the same boat. I thought that I cannot offset my van and pole system off my income in year one but only 25% for tthe next four years as this is capital expenditure. Does this sound about right.

Yes you can.

Sorry but yes you can what? Offset all expenses in year one? My wc mate was told by his accountant to change van every four years.

Offset your van in year 1. If you paid 5k you offset the lot if it is exclusively for your business.

[Ian101]

right lets keep it simple [ yeath yeath i know ] if i earned 500 pound every week [ bar 2 ] that would be 25 grand a year , i can earn lets say 9000 , so that leaves my taxable income at 16000 and if i spent 6 grand a year on tools , diesal etc that would make my taxable income 10 grand , so 20 percent of that would be 2 grand ,so my tax for that year would be 2 thousand pounds , is that more or less it or am i wrong [ i often am ]  

25000

less 9000 tax free amount (not sure its this high but using your figures)
less 6000 on tools / fuel etc

so your £10000   .... less some suggestions for you  

less £500    trips to bank by missus in her car @ 45p per mile
less £480    use of room for office in house gas eleccy etc
less £150    washing of uniform
less £ van depreciation at 20% per year on a reducing balance unless you want to wack it thru in 1 go under your AIA (annual investment allowance) see link .... however if you use the AIA and show a loss this year then you can get a refund on any tax you paid last year OR you can use a loss this year to offset any tax to be paid on profit for next year (which may be handy as if you have to pay tax amount over £1000 then you move into the area of paying on account i.e. end of jan you will pay tax for last year, 50% on account for the preceeding year and the other 50% will be payable in June or July ... cant recall right now personally I took the route of 1 in the hand now so wrote van and equipment off and got a refund.


DISCLAIMER  
any of this I have typed may be wrong as I merely clean windows so either take a chance or get an accountant

[Ian101]

http://www.hmrc.gov.uk/capital-allowances/plant.htm

link i forgot to insert in previous post

[Ian101]

oh and dont forget your water as an expense ... blindingly obvious but I nearly forgot about it !!

[Ian101]

right lets keep it simple

hmmmm doubtful mate