[Colin Day]

It's 11 days 'til the dreaded self assesment tax return date... I've just been in to the accountants to chase up whether mine's been submitted or not... NOT!  Well not yet, but he's onto it

As it was my first year and I spent more than I made by buying new equipment, what sort of tax bill should I expect?

I'm not too proud to say that the money/tax etc side of the business tends to worry me a bit and I know I need to get my head around it.

[from edge2edge]

Colin you should pay burger all in the first year with all that outlay.Regards Alan(swindon)

[Amethyst]

Colin, The basics are that if you spend more then you earn you pay no tax. If you have another source of income such as a pension from a company or similar you should be able to claim tax paid on that against your trading losses. A good accountant will sort this out for you.

[Gordonnis]

payed £3.50 in my first year  allways get a good accountant that has been recommended saves you in the long run

[Jim_77]

Don't worry about it too much mate, as long as you've provided all the documents etc your accountant needs, he can rustle up your return in no time using the online service, probably 30 mins work.

Funnily enough, HMRC aren't in a blinding rush to issue repayments so I wouldn't be too bothered.  You might want to consider keeping any repayment amount on your account rather than claiming it, so you've got less to pay when you actually start owing the taxman money

[Jim_77]

P.S. yes it is daunting... in my first couple of years I made the mistake of thinking I was better off doing it myself.... couldn't get my head around it all and suffered a couple of £100 penalties in the process.  If you're paying circa £300 for an accountant to do your end of year return, that's about right, and even if it doesn't "save" you anything in your first couple of years believe me it's money well spent.  Some things are just far better off being handed over to people who know how to do it best... a bit like carpet cleaning!!

[Aquakleen Restoration Services]

Hi Colin

Just had my accountant around on Monday. I asked him if the price for his services was going to be £345 like it was last year. He happily said that is was so I then told him I thought it was too much. Anyway to keep me sweet he knocked £100 off my bill so my accountants bill this year is going to be £245.

Moral of the story is dont be afraid to ask for a better deal as in this economic climate you may well just get one!!

John

[Steve Chapman]

I expect you will be doing the same when your customers ask for a discount 

[Hilton]

My advice,

Get your self a top notch book keeper to do your books every week,fortnight,monthly depending on your turn over entering on to a system like Quickbooks, it will save you a lot of time and headaches and it will be cheaper in the long run, it is a good idea to get a monthly  P&L as well. 

[richy27]

Colin you shouldn pay much the first year if any a good accountant will sort this ian hit nail on the head but remember that the first 6450 i believe correct me if wrong of your profit is personal allowance.

[Jason Ryan]

I think richard is right, and that £6450 (might be near 7k now) is the profit after deductions of equipment,mateials etc if im right. So if you didnt make anything over that figure in profit then you pay nothing.

If you are filling the accounts yourself then do it online as it simpuler than the paper form and if you get time go on a self assesment course that the inland revenue run for free (though it can be a lot to take in)

Cheers

[richy27]

I have not been in business very long but my father has been in business for 45 years not cc and the one thing he always says pay for agood accountant as he will save you a fortune. the cheapest or doing it yourself can cost you ££££ no point in saving a penny to cost a pound

[JandS]

If Colin's on a pension then his allowance will be used on that.

John

[Colin Day]

If Colin's on a pension then his allowance will be used on that.

John

I'm on a "Tax Free" Index linked War pension of £5424..... I have declared this to my accountant....

[garyfindlay]

The tax man paid me £450 in my first year

[Aquakleen Restoration Services]

I expect you will be doing the same when your customers ask for a discount 

Yeah ofcourse