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cornwallwindows

  • Posts: 115
Tax - blurgh!
« on: July 01, 2014, 12:28:02 pm »
Hi. I've just registered my new window cleaning business with HMRC but I'm a little unsure of when it comes to doing the tax returns what to put in and how to present it all.
Do I need to record all my income and expenditure? I've kept receipts of everything and have a written account of who's paid, when and how much. Is that ok??

deeege

  • Posts: 5109
Re: Tax - blurgh!
« Reply #1 on: July 01, 2014, 01:09:31 pm »
Limited company? Get yourself an accountant!
"....and it's lend me ten pounds, I'll buy you a drink, and mother wake me early in the morning."

Johnboy2525

  • Posts: 11
Re: Tax - blurgh!
« Reply #2 on: July 01, 2014, 04:33:10 pm »
+1 with Degree there's alot more involved with ltd companys

Dave Willis

Re: Tax - blurgh!
« Reply #3 on: July 01, 2014, 05:16:56 pm »
Interesting website Cornwall Windows - I hadn't thought of clean glass reducing heating bills before.

Watch out for the payment on account with the taxman at a later date.

johnny bravo

  • Posts: 2714
Re: Tax - blurgh!
« Reply #4 on: July 01, 2014, 05:21:20 pm »
did you use your waterfed pole to clean those gutters, clean job.

Mike #1

  • Posts: 4668
Re: Tax - blurgh!
« Reply #5 on: July 01, 2014, 06:21:06 pm »
You have just registered , Thought you been doing windows for about 4 months now .

IF you aint got a clue you need to speak to an accountant ASAP . Mike

*Hector*

  • Posts: 9270
Re: Tax - blurgh!
« Reply #6 on: July 01, 2014, 06:30:20 pm »
just make up a load of figures..  :o

Don't make them too high..  8)

Make sure you outgoings and big purchases exceed your incoming..  :D

Voilla no tax to pay...

 ;D ;D



works for most on here...  ::)roll ::)roll

Everyday this forum slips further from God.  :'(

martinj

  • Posts: 86
Re: Tax - blurgh!
« Reply #7 on: July 01, 2014, 08:09:11 pm »
But seriously...
Register to do it online its much simpler , keep records and receipts for each clean, when you get paid and BUSINESS expenses then online its as simple as income less expenses less personal allowance equals taxable income and hmrc website works out tax and ni payable. If an expenses is totally business related deduct all of it if not deduct the business portion. Your income is what youve cleaned not what you get paid if you clean but dont get paid its a bad debt which you deduct from income. Any capital purchases for the business ie van, pole, backpack etc can either be offset against income entirely in the first year of trading or if bought after that depreciated as an expense, if your just starting i wouldnt go for an accountant, use a local book keeper if you cant get your head round it. But beware the taxman can ask to see your records upto 6 years after the tax year you filed them and the responsibility is yours not the accountant. Also i wouldnt go limited until you hit a higher tax bracket the accounting is more complicated and you wont benefit. Maybe get in touch with your bank who may help you or search on web but i would avoid hmrc site its confusing i was a part qualified accountant for 6 years and it confuses me! In my experience the taxman is quite understanding provided your records are complete and he doesnt suspect fraud and hmrc are helpful IF you can get through.

Jonny 87

  • Posts: 3512
Re: Tax - blurgh!
« Reply #8 on: July 02, 2014, 12:25:08 am »
Your income is what youve cleaned not what you get paid if you clean but dont get paid its a bad debt which you deduct from income

I've never heard it put like that before?

So if I have a customer that does a bunk owing me £30, I still put that down as having earned the £30?

I've got an accountant, but that doesn't seem right to me.

Surely income is.......income.
Vision Technician / Visual Engineer /  Vision Enhancement Operative /...........................................................OnlyUseMeWFP AkA Jonny the Windy Wesher

Stoots

  • Posts: 6351
Re: Tax - blurgh!
« Reply #9 on: July 02, 2014, 11:02:36 am »
simplified expenses and cash basis

simple as noodles

martinj

  • Posts: 86
Re: Tax - blurgh!
« Reply #10 on: July 02, 2014, 02:07:56 pm »
Jonny it depends on whether you are sole trader, ltd co etc but whether you take income or sales less bad debts or money actually collected its the same figure

martinj

  • Posts: 86
Re: Tax - blurgh!
« Reply #11 on: July 02, 2014, 02:16:40 pm »
http://accounting-simplified.com/income.html
If you really like pain check this link out in particular the bit at the bottom entitled "accruals principle"

Jonny 87

  • Posts: 3512
Re: Tax - blurgh!
« Reply #12 on: July 02, 2014, 08:52:50 pm »
Jonny it depends on whether you are sole trader, ltd co etc but whether you take income or sales less bad debts or money actually collected its the same figure

Ah I see, I'm with you now.

I'm glad I have an accountant. Haha.
Vision Technician / Visual Engineer /  Vision Enhancement Operative /...........................................................OnlyUseMeWFP AkA Jonny the Windy Wesher

robert mitchell

  • Posts: 2019
Re: Tax - blurgh!
« Reply #13 on: July 03, 2014, 10:14:53 am »
You can now do it on a cash basis rather than sales .

So you add up the payments recieved in your accounting period rather than sales .
www.ishinewindowcleaning.co.uk

The man who never made a mistake never made anything.

martinj

  • Posts: 86
Re: Tax - blurgh!
« Reply #14 on: July 03, 2014, 04:43:33 pm »
Yes im with rob accounting is a dark art and very complicated , it makes my brain hurt but fortunately i have a small brain so it only hurts a bit, all the tax man cares about is how much youve earned and how much it cost you to earn it, take one from the other then take off your personal allowance that leaves your taxable income. Set it all out as though someone else needs to understand it and show workings, keep receipts and bank statements etc then if the tax man asks a question in 4 years you wont be staring at an amount thinking how the hell did i work that out. Or pay someone else to do it but dont ask me i aint never going back!😀

Window Lickers

  • Posts: 2196
Re: Tax - blurgh!
« Reply #15 on: July 03, 2014, 05:56:37 pm »
Do I need to record all my income and expenditure?

No. Keep all your receipts but only declare 30% of what you earn. If a mate has some diesel receipts nick them and declare then as your legitimate expenses too.  Also if you can blag some other receipts that's great. I know a mate who bought his daughter a rabbit hutch for her rabbit and put it through his building firms books. He said it was a cupboard for a kitchen he was fitting out.

I also heard of a bloke who had his duck pond cleaned out and put that through the books as well as various nights away in Central London establishments.

Don't ask - don't get. Crack on  ;D
Liberace's ex looking to meet well built men for cottaging meets.

Carl2009

  • Posts: 806
Re: Tax - blurgh!
« Reply #16 on: July 04, 2014, 08:26:17 am »
Do I need to record all my income and expenditure?

No. Keep all your receipts but only declare 30% of what you earn. If a mate has some diesel receipts nick them and declare then as your legitimate expenses too.  Also if you can blag some other receipts that's great. I know a mate who bought his daughter a rabbit hutch for her rabbit and put it through his building firms books. He said it was a cupboard for a kitchen he was fitting out.

I also heard of a bloke who had his duck pond cleaned out and put that through the books as well as various nights away in Central London establishments.

Don't ask - don't get. Crack on  ;D

Are these the same people who moan about MP's ripping off the public when they claim their "expenses"?  ::)roll