cookstar

iTrader: (6)

Will be starting part time consultancy work, to run alongside my current job.

Now just so I don't look completely stupid when I begin discussing this properly with my soon to be accountant, I would like some background info on how the whole system works.

Using these figures as a rough guide.


Amount invoiced for per year. £20'000 ish

Now this will require quite a bit of driving and parking costs.

Lets say for a really rough guide £3000 per year expenses.


Will I pay the flat rate of tax on the invoiced amount, be it around 20% I think, then will I be able to claim the entire amount of my expenses back at the end of the year??

I pay the higher rate of tax atm in my current job if that makes any difference.

I hope this makes sense, as I really don't know how this works at all.


Cookie

Peter 300

Best ask your accountant mate he'll help you if his any good.........


40% tax it's S**T eh

Milamber

iTrader: (2)

income less expenses - 40% on the rest plus some national insurance.

make sure you spend a lot on business expenses.

cookstar

iTrader: (6)

40% on that too

bollx, Im sure that there are ways and means to *ahem reduce that

Milamber

iTrader: (2)

I paid £32-00 tax last year and got a £300 rebate

cookstar

iTrader: (6)

Im hoping that the milleage will help a lot, Im not sure of the exact amount allowed to be claimed per mile, 40p rings a bell, and hopefully it will cost nowhere near that amount to actually drive it.

Is that £32 tax?

Milamber

iTrader: (2)

I think its now 0.42p or something like that.

You MUST register as self employed as soon as possible. They get the right **** ache if you don't. Its just a simple phone call.

My accountant is based in Leeds I'm afraid but he is very good


Yep £32-00 tax can't complain about that

Spec'c'57

iTrader: (1)

cookstar

iTrader: (6)

Will be registering before the week is out hopefully, I have a meeting Friday morning with the guy I will be doing the work for. Then speaking to my Brothers accountant who will be dealing with the invoicing etc.

Its just nice to get a bit of background before having these conversations

Cocker

iTrader: (3)

One of my best mates is Head of Finance in this company

No Longer Limited

They specialise in tax savings for self employed people. Id recommend any self employed person giving them a ring for more information on how they can save themselves paying tax.

Let me know how you get on!

Budgie

iTrader: (4)

the simple rule is
if you can determine its for business use
get a receipt and claim for it

budgie
(basic rate tax payer )

Tiny

Peter 300

Basic tax HA HA

tricksy

Yep, you will pay 40% tax plus NI conts on the profit you make (income minus expenses)

Just remember that the expenses have to be provable, you will need diesel/petrol receipts for fuel claims or mileage proof for fuel allowances, currently 40p a mile up to 10k and 25p per mile thereafter.

I'm sure with set up costs, computer costs. stationery, book keeping, accountancy, vehicle purchase, fuel, servicing, advertising there won't be much left

Budgie

iTrader: (4)

WHAT!
i am
and another thing
with all these training games for nintendo
brain training
sight training etc
when will they make a VAT and Tax evasion game
would sell like hot cakes

budgie

baser999

iTrader: (2)

One other matter to be considered is whether you are truly self-employed. If all the part-time consultancy work you're going to be doing is for the one company or individual, the Revenue could well seek to establish that you are in fact an employee and you'd then lose any claim for expenses to set against your income. Have a look at http://www.workingforyourself.co.uk/selfemployed/default.htm
Your accountant will no doubt discuss this with you.

Budgie

iTrader: (4)

provided you submit a written quote (prior to starting the work )
and your quote is the best
thenthe company will use you every time
therefore opening the loop hole

budgie

btw, do nothing long term on an hourly rate

cookstar

iTrader: (6)

Thanks chaps, looks like a good long chat with the accountant is in order

Cocker

iTrader: (3)

Honestly mate - give my mates firm a ring first before talking to an accountant - got nothing to lose!

baz69birds

Im having work done on my car, Can i claim that, ???

As i have to drive iot to work as dont have a WORK VAN/CAR yet???

Gangsta Smurf

pmsl at this thread.

firstly why anyone would post up their ioncome and what tax they pay on an open forum like this is totally beyond me and demonstrates a complete lack of understanding about the seriousness of other people knowing your information.

Secondly as a trained accountant (in my old days in the big 5 (as it was then)) I saw many cases of people trying to put through 'expenses' to reduce their tax outlay. This may work in the sort term but when these people get their eventual investigation they are totally totally screwed.

My advice to all those who are commenting in this thread is be carefull and think twice about what you post on this subject.

Cookie ... you are mad to post up what you have. now 100,000 plus people know about your earnings!!

Budgie

iTrader: (4)

a lot depends on who is the registered keeper of diane's car

budgie

sorry not come up with any work as yet
its a bit slow at the moment
hence me being home at 4

baz69birds

its only this week mate, But ive had 2 days
next week Whole family off on hols...

p.s ITS MY CAR, the SUBARU, & Dianes car is REGISTERED in my NAME

deep_st24

iTrader: (1)

Best thing you can do is speak to your accountant.

Ive recently become self employed and didnt have a clue what I had to do.

I walked in explained what I would be doing, a kind of ball park figure of wat I would be invoicing for; he smiled and nodded.

Next thing I knew I was leaving with his phone number for any questions, a list of what information he wanted from me and the assurance that its all taken care of.

Not worth worrying yourself with if you have a good accountant (my opinion anyway), Im too busy making the money to worry about everything else.

One thing I do remeber though is that you have to pay tax and class 2 and 4 N.I, that can work out to a few pound!!

cookstar

iTrader: (6)

They were examples!

Budgie

iTrader: (4)

being a director of a limited company
my income is available for all to see for a small fee to companies house
also i have nothing to hide from the ir
never rely on your accountant to tell you everything
submit all receipts and they will reject those not relevant

budgie

WRX_Dazza

i only earn 12k a year..... but i have only 2 vices...

Tiny

2k more than me

I Have 4 vices

Budgie

iTrader: (4)

no m8
they said thats all you are worth

budgie
off now to kick boxing
back at 9

Gangsta Smurf

an accountants role is to prepare financial statements which paint a true and fair view of a company at a particular point in time whilst observing the rules of prudence amoungst others. If you provide your accountant with poor information then that's what your accounts will portray ... how do you think companies like enron went down! therefore simply saying view my accounts as i have nothing to hide is not an answer to give a tax investigator. a forensic view of records dating back 7 years would be used in such an instance! your accountant works for you at the end of the day so has to work with the information you give him/her.

The fact remains ... I wouldn't post on an open forum details of the percentage of tax you paid. Or ask for help regarding tax. If you need help then stump up and go see an expert. In the long run you'll save money by not making costly mistakes.

Two things to never skip corners with in life ... paying tax, being faithfull to your wife! Both can destroy you if you get it wrong.