[Moderator David@stives]

Rog

You still have another 18 days to find the money, it happens to us all.

One thing to consider when you are self employed is not to live from hand to mouth and always have some contingency fund in place.

[Tosh]

Well it's simple.
I've been asked for 3 times what I'd put aside for, so I can't pay it.

No wonder people hate them.

Is that correct though?  Have you worked it out?

[Sir Squeaky]

Ha ha! Yes!

Just rang them, and they said the online form doesn't take into account payments on account from last year.

He told me what to take off from last year.
So I can deduct nearly 60% of the bill!

The total now is perfectly managable.
Pays to check up on these things...

[Moderator David@stives]

No problem

[Tosh]

But... say my profit was £7000, they are taxing me nearly £1500 (that's almost 25%)
So nothing has come off from last year.

Also they want another £750 now and again in July.

Now I expected to have to make two payments, but it shouldn't be as much.
What's the point of paying on account if it makes no difference.

As far as I'm concerned they've stolen that money.

Squeaks,

If your profit was £7000 minus your personal allowance of £5225 = £1775 taxable earnings.

Because the government reintroduced the 10% tax band, the next £2230 of profit is at 10%. (as opposed to 22%)

So 10% of your taxable earnings is £177.50

Also Cat 4 NI which is 8% of £1775 = £142

So your total tax liability should be £177.50 add £142 = £319.50

[Sir Squeaky]

I meant taxable profit after allowances!
Those weren't real figures anyway, just proportional made-up ones.

Doesn't matter anyway, it's sorted now.

[Tosh]

Well don't leave it so late next time and find out how to work it out yourself; then you won't be flapping so much!

 

[Sir Squeaky]

Flapping?

I nearly took off!

Anyway, i'd better do some work to pay my new smaller tax bill!

[WISEOWL]

What did I tell you?

 :

I was trying to help people after people were so helpful with my pump problems.

 

I asked if you were online because on your main page their is a 'current status' which says xxxx amount needs paying.

Click on that and it gives you two amounts - your payment for January and your payment for July.

[Tosh]

There'll be guys on this forum who'll state they're 'whiter than white', but I bet if I audited their books and followed them about for a month; I'd be able to pick holes in them; as the tax man could with me; no doubt.

What about making adjustments for using a work van for private use?  You should; in theory; even though the administration for accounting for that would be a pain. 

[AuRavelling79]

There'll be guys on this forum who'll state they're 'whiter than white', but I bet if I audited their books and followed them about for a month; I'd be able to pick holes in them; as the tax man could with me; no doubt.

What about making adjustments for using a work van for private use?  You should; in theory; even though the administration for accounting for that would be a pain. 

But what about the occasion you use the family car to go collecting - "swings and roundabouts" - surely?

[kenaltobelli]

i have put a post on here or on the other forum about accountants just paid my old one off
accounts just gone in i started them in may when i get bank statment for apr
i like to have that taken care of by a proffesonale but as i said befor keep all your letters
allways mine cost me £751.44 this year but could have cost 30000 plus

[Tosh]

But what about the occasion you use the family car to go collecting - "swings and roundabouts" - surely?

No, you can account for that too.

As I say, the administration of it could be a pain, but the principles of what you're taxed on remain the same; 'it's all to complicated and difficult' isn't an excuse.

My point is, there's not many people who don't fiddle their taxes in some way; even if it is purely from avoiding doing anal administrative tasks.

[Roy Harding]

What about making adjustments for using a work van for private use?  You should; in theory; even though the administration for accounting for that would be a pain. 

I went to see Gerald Lee the head tax inspector at Pontypool a couple of years ago, as I had quite a few questions.

I told him that I had deducted private use for my van, he asked me why?

I told him that there would be times when I would pickup milk etc. He said " We are not interested in such things put 100% of your works Van".

Roy

[Tosh]

I went to see Gerald Lee the head tax inspector at Pontypool a couple of years ago, as I had quite a few questions.

I told him that I had deducted private use for my van, he asked me why?

I told him that there would be times when I would pickup milk etc. He said " We are not interested in such things put 100% of your works Van".

Roy

Roy, a tax investigation is nothing more than an AUDIT.  I've been audited many times in a previous occupation.

Basically what happens is someone sits down and goes through your books and will write down 'observations' which are basically questions asking why you've done various stuff.

Some auditors have their own area of excellence; others have their own peculiarities.

But using a work vehicle for private use and claiming expenses for it is obviously not right.

Why should I; as a tax-payer;  fund your fuel, wear and tear of your vehicle, for you to go and do your own private stuff?

[Tosh]

I hope no one thinks I'm whiter-than-white when it comes to my own tax submisions mind!

 

[Roy Harding]

I told him that I had deducted 15% private use as my accountants allways had.

He told me no claim 100%.

I do agree with you, but he did say it so I claim 100% now.

I  have rung him many times and he is allways helpfull, I got pulled about 12yrs ago. And after a week they sent me a letter say the had concluded there investigation.

Time for another I expect.

Roy

[Tosh]

I told him that I had deducted 15% private use as my accountants allways had.

He told me no claim 100%.

I do agree with you, but he did say it so I claim 100% now.

I  have rung him many times and he is allways helpfull, ....

Roy

Roy,

I think you've answered the question yourself.  We're not all whiter-than-white; your latest accountant is just a bit cheekier than your previous ones; in your favour!

Of course he's helpfull; he wants your business; it only takes him ten minutes to input the figures you give him onto your tax return; then charges you £200 for it.

I doubt even you can clean £200 quids worth of work in ten minutes; while having a coffee at the same time!

[Sir Squeaky]

I doubt even you can clean £200 quids worth of work in ten minutes; while having a coffee at the same time!

I doubt it too.
Roy rarely does much more than £150 in ten minutes.

[Paul Coleman]

I went to see Gerald Lee the head tax inspector at Pontypool a couple of years ago, as I had quite a few questions.

I told him that I had deducted private use for my van, he asked me why?

I told him that there would be times when I would pickup milk etc. He said " We are not interested in such things put 100% of your works Van".

Roy

Roy, a tax investigation is nothing more than an AUDIT.  I've been audited many times in a previous occupation.

Basically what happens is someone sits down and goes through your books and will write down 'observations' which are basically questions asking why you've done various stuff.

Some auditors have their own area of excellence; others have their own peculiarities.

But using a work vehicle for private use and claiming expenses for it is obviously not right.

Why should I; as a tax-payer;  fund your fuel, wear and tear of your vehicle, for you to go and do your own private stuff?

If you have a car as well as a van then offsetting 100% is no problem.  In fact, it may even be possible to offset a bit of private car usage too if you prefer to use it for certain quotatrions etc if it would be better for marketing than a work van.  I only have the van for transport so it is 85% business and 15% private.  I use those proportions all the way down the line with the van - including the capital allowances for it and even the loan interest.  It would be pretty daft to say that you NEVER used the van for private use when it's the only vehicle available.