[Helen]

Plenty of enquiry, not many bookings, thankfully have a large com job booked sat,end of this month and beginning of next looking ok .
Not worked out what I am telling the inland rev yet, they want over 5 grand from me and I have nothing for them, just keeping my head above water,and used what i had put by for them to survive.Oh dear

is the 5K what you owe and the first up front one?
Why 5K? you must be earning it to pay it!
It does seem extreme for a one man set up? get a better accountant Mark who can reduce this for you....... 2 of us £2500 each for all of last year's tax = good accountant

answering the original question, could be better, could be worse, but January is a long month, roll on February

[Kinver_Clean]

Having been in the same state many years ago I pay 20% of my takings into a separate account.
That is too much but it covers the accountant as well.

[M.Acorn]

I had a very good year 2011/2012, have a very good accountant,he has done all he can, it's what I owe then another lump in a few months time,so going to be playing catch up for most of the year now.
Was paying in between 5 and 6 grand a month on quite a few occasions last year.
Been the best year since I started up, nigh on 40 grand.   

[Helen]

40k less tax allowance of 7475 = 32525 less overheads of ? think your accountant is not working hard enough for you or you are not claiming all that you could would have a re-look at how you operate.

[wayne zabel]

40k less tax allowance of 7475 = 32525 less overheads of ? think your accountant is not working hard enough for you or you are not claiming all that you could would have a re-look at how you operate.

It could be that he has 40k profit after all his overeads??

If only I had that

[M.Acorn]

Balancing payment for tax year to 5th April 2012 £3.416, first payment on account for tax year 5th April 2013 £1.708 and another £1.700 July

[Steve Barnett (Carpet Care Plus)]

You could have invested in all new equipment Mark, instead of carrying on with your old gear that keeps going pop !!

All tax deductible 

[M.Acorn]

Been fault free most of last year Steve, bought new solution hose and a new vac motor, that is currently a spare as changed brushes in old motor and was fine,also have a spare pump, just in case.
Could have bought new gear, but happy with how the old stuff is performing as are my customers.
I did invest in a rather large pro pa system though around 6kw rms ,sure my neighbours would rather I spent it on machinery though

[davep]

You can claim for that. Put it down as advertising. Say it's strapped to roof of your van to announce special offers 

[The Great One]

You might be able to reduce your tax liability if this year is less profitable.

So if 11/12 was £40k but 12/13 is say £29k then you will get a sizeable reduction in the tax you owe now, you can estimate up until april to give an overall figure, if you are out you will just have to pay a little extra interest next year, I did this last year and reduced from almost £7k to under £3k and i've done it again this year and it's dropped from £3k to £1300 as my earning did actually drop last year and again this year to being out of the country for 2 months, it's a totally legal way to reduce your tax if you've taken less gross income.

Martin

[M.Acorn]

Did mull over setting up some sort of hire company and running it at a loss  

[M.Acorn]

Yes I will be taking this years paperwork to my accountant,see if it is possible to reduce the payment on account.
Have only just paid him £350 though, so going to wait for that until next month when work is a bit better.

[Helen]

Yes I will be taking this years paperwork to my accountant,see if it is possible to reduce the payment on account.
Have only just paid him £350 though, so going to wait for that until next month when work is a bit better.

You should be able to work that out for yourself.

Rules in self employment
1) Pay mortgage/rent
2) Buy food
3) Put away for tax man
4) Overheads for business
5) personal use
 

[M.Acorn]

I suffer from number dyslexia Helen, have tried in the past to sit and work it out, but it just ends up doing my head in.
My accountant gets a big box file at the end of each tax year,all my paperwork,which he goes through after I have a meeting with him.
Much less stressful and tax deductible 

[wynne jones]

Worse case scenario, they fine you, you pay interest no more than a bank will charge you and you have to work harder to pay it off. After all it is based on previous profits. The main thing is at least you are declaring profits and can hold your head up high.

[M.Acorn]

Yes I am proud of where I have got to in 9 years,many people have gone under,so I must be doing something right at least,and yeah only about 1% interest so no biggy really

[The Great One]

Yes I will be taking this years paperwork to my accountant,see if it is possible to reduce the payment on account.
Have only just paid him £350 though, so going to wait for that until next month when work is a bit better.

You have to get the readjustment in by the 31st so he can do it, doesn't matter if you've paid him

[jasonl]

Mark , you ought to be putting it into a pension , thus reducing your tax liability , you can even go back several years with this.

Once you have a decent pension pot , invest it in commercial property , I know several carpet cleaning millionaires who followed this method .

Be a business man , not a tradesman.

[M.Acorn]

Good advice, I really should start paying into a pension.
With the life I was living 10 or so years ago,I really didn't think I was going to make 40 

[jasonl]

See a  financial adviser NOW , you will definately be better off.