[Tosh]

If I built an extension on my house for an office, would I be able to claim tax on that?

It's not often I say this, but that's definately a case of 'get an accountant'; and there'll be stuff like capital gains to consider if you claim for building an office and sell for a profit in the future.  Or maybe you die... what's the implactions then?

[williamx]

I have a very good accountant who is contactable anytime of the day/night.

The only instructions I have given him is, I do not want to pay tax, so now he makes sure that my tax liablity is as small as legally possible.

For this his fee is well worthwhile.

[Tosh]

I have a very good accountant who is contactable anytime of the day/night.

The only instructions I have given him is, I do not want to pay tax, so now he makes sure that my tax liablity is as small as legally possible.

For this his fee is well worthwhile.

I want to pay tax; I want to pay LOADS AND LOADS AND LOADS OF TAX; the more the better.

I'd love to pay £10,000,000 in tax!

Why?

Because you pay tax on your profit and the more tax you pay, the more profit you've made.

If you pay little or no tax, you've made little or no profit.

Or you've lied.

[Tosh]

My tax bill is fairly average; but I do work with Wor Lass and she uses her tax allowance as well!

 

[williamx]

I pay tax but if my accountant can find legal ways to kept this to a minimum who am I to complain

[Tosh]

I pay tax but if my accountant can find legal ways to kept this to a minimum who am I to complain

As far as I know accountants don't have any magic wands to be able to reduce your tax bill.

Can you give me an example of how yours reduces yours?

I mean turnover minus expenses equals profit; full stop.

[Tosh]

Hydro,

I see you're Ltd; I've just noticed; now I know next to nothing about Ltd companies (apart from a few general facts); so maybe in your case you could be correct with regards to an accountant.

[williamx]

Tosh

My accountant advised me to go Ltd to reduce my tax liablity, I do not know all of the loop holes but one was because i am Ltd I pay myself my yearly tax allowance (£6250) as my wage which is free from Income Tax and National Insurance, I then can also take out of the company £25000 in Tax Free Dividends.

I do have to pay corporartion tax of 21% but unlike income tax which increases from 20% to 40% when I reach £34000, the corporation tax rate 21% is upto £2000000.

I am also thinking of buying property both here and abroad which the company will own, but because I own the company I therefore own the property, but it is tax deductable.

There is also something about moving this property into a SIBS pension which is also tax favaurably.

I don't pretend to know all of the loop holes thats why I am only a window and carpet cleaner. :

[leapstallbuildings]

I pay tax but if my accountant can find legal ways to kept this to a minimum who am I to complain

As far as I know accountants don't have any magic wands to be able to reduce your tax bill.

Can you give me an example of how yours reduces yours?

I mean turnover minus expenses equals profit; full stop.

One small thing that can help is to buy large capital items near the end of an accounting year.  They may then be used to offset tax from the start of the accounting year that you are in (i.e. backdate 11 and a bit months).  That way you start getting tax relief a year sooner than if you had waited a couple more weeks.  Also, the opposite can apply.  You can delay offsetting capital items as long as you wish if you wouldn't have paid much tax anyway for the year that you bought something.  There is now a way of ofsetting the whole of certain items in year one as well (enterprise allowance?? or something like that) though I don't think it applies to vehicles.