Anyone out there Self employed??
#1
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Anyone out there Self employed??
As per title..........I want to know how much (roughly) you pay on tax when your self employed??
If you are only charging out your labour at say £10 per hour (round figure) , how much will be deducted for tax and N.I??
Can it be worked out roughly??
Would you say that approx 25% of your total bill would go on deductions???
Just a rough idea please
Thanks
If you are only charging out your labour at say £10 per hour (round figure) , how much will be deducted for tax and N.I??
Can it be worked out roughly??
Would you say that approx 25% of your total bill would go on deductions???
Just a rough idea please
Thanks
#4
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I was just about to start a thread about being self employed as I am thinking of doing it myself and I don't really know alot about what you have to do to sort out taxes, NI etc etc, apart from looking on websites but that sometimes doesn't help.
So if anyone has any advice please share it
So if anyone has any advice please share it
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#7
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Thanks for that link, it's alot more helpful than the ones I found, I'm still in the dark about certain things but I need to get everything sorted first so that I don't jump in to anything and end up right up **** creek.
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#9
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I am self employeed.
I own www.GSMotorsport.com and its taken me 2 years to build.
In terms of tax, i hate the subject but so far i have been able to write most of my spending off against tax and ive not actually had to pay much!
Its lucky in one way but not in another.
If you write most income off against the business, then you dont actually show it as an income, so applying for mortgages and stuff your income looks much lower than it actually is.
Whereas on a tax side its great because you pay less tax.
Talk to your accoutants.
I own www.GSMotorsport.com and its taken me 2 years to build.
In terms of tax, i hate the subject but so far i have been able to write most of my spending off against tax and ive not actually had to pay much!
Its lucky in one way but not in another.
If you write most income off against the business, then you dont actually show it as an income, so applying for mortgages and stuff your income looks much lower than it actually is.
Whereas on a tax side its great because you pay less tax.
Talk to your accoutants.
#11
Originally Posted by Julz1983
Thanks for that link, it's alot more helpful than the ones I found, I'm still in the dark about certain things but I need to get everything sorted first so that I don't jump in to anything and end up right up **** creek.
#13
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by then time all your accounts are sorted you will will end up payng about 10-14% of you gross wage. thats whatit has always worked out for me. but then it depends on what you have to claim for, at £10 an hour i cant see it being much. £1-2k for the year probably depending on what your accountant can claim for
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We're self employed and don't earn a penny as yet so don't have to pay tax at the moment. I will say that the IR are hot to follow up any money they think you may owe.
#15
Originally Posted by G_Sleigh_STi
If you write most income off against the business, then you dont actually show it as an income, so applying for mortgages and stuff your income looks much lower than it actually is.
Some large banks now work mortgage amounts on affordability (basewd on your credit record) rather than actual income. I've been offered some absolutely ridiculously high mortgages on this basis.
Obviously make sure that any mortgae you may get really is affordable (bearing in mind interest rates can go up) Mortgage arrears/repossesions DO NOT look good on a credit record
Last edited by RJMS; 05 May 2005 at 09:45 AM. Reason: Added last line
#16
you pay the same tax as anyone else....basic rate then higher rate.
what you pay at each depends on your profits.....and that depends on your.......profits!
you can work out what others do and just go by that, either get an accountant or start reading up!
T
ps- i hope the £10ph is just an example???? my kids get that for doing chores!
what you pay at each depends on your profits.....and that depends on your.......profits!
you can work out what others do and just go by that, either get an accountant or start reading up!
T
ps- i hope the £10ph is just an example???? my kids get that for doing chores!
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Originally Posted by RJMS
Agreed - one thing that did/does work for me is using a personal credit card for business purposes wherever possible AND paying it all off each month - free credit and perhaps more importantly looks really good on your credit record.
Some large banks now work mortgage amounts on affordability (basewd on your credit record) rather than actual income. I've been offered some absolutely ridiculously high mortgages on this basis.
Obviously make sure that any mortgae you may get really is affordable (bearing in mind interest rates can go up) Mortgage arrears/repossesions DO NOT look good on a credit record
Some large banks now work mortgage amounts on affordability (basewd on your credit record) rather than actual income. I've been offered some absolutely ridiculously high mortgages on this basis.
Obviously make sure that any mortgae you may get really is affordable (bearing in mind interest rates can go up) Mortgage arrears/repossesions DO NOT look good on a credit record
Hell through the business i put about £20k a month onto the business card and pay it of at the end of every month automatically...
Realistically on a basis of credit rating i should be able to get a bigger mortgage than on shown income which i need to do desprately!
Good advice! Thanks
#21
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Originally Posted by lukeyboy
you get deducted 18% tax and pay a whooping £2.05 a week N.I
Get a good accountant who will guide you, as there are lots of things you can claim to offset your tax. Dont buy a new car the first year with your new found wealth ( unless you need a new car), for every £100 you spend on a car you save £20ish in tax for a basic rate tax payer. So to look at slightly differently your saving £20 on tax and spending £80 to get the saving.
#22
Originally Posted by G_Sleigh_STi
Hmm thats an interesting idea.
Hell through the business i put about £20k a month onto the business card and pay it of at the end of every month automatically...
Realistically on a basis of credit rating i should be able to get a bigger mortgage than on shown income which i need to do desprately!
Good advice! Thanks
Hell through the business i put about £20k a month onto the business card and pay it of at the end of every month automatically...
Realistically on a basis of credit rating i should be able to get a bigger mortgage than on shown income which i need to do desprately!
Good advice! Thanks
#23
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Originally Posted by lukeyboy
you get deducted 18% tax and pay a whooping £2.05 a week N.I
Average tax/NI payment is 20% of income.
#24
Originally Posted by Dream Weaver
And the rest. You pay £2.05 a week, but then have to top up your NI contributions at tax return time by about 7% of profit or similar.
Average tax/NI payment is 20% of income.
Average tax/NI payment is 20% of income.
#25
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What you moaning at
Its 7% on top of the contributions you make throughout the year. On rough workings out I pay the same percentage in tax and NI that i used to when I was employed so there are no tax breaks from being self employed.
Its not an exclusive club, if being self employed is such a problem to you re tax payment then why not join rather than making it sound like we're getting something for nothing?
I believe the self employed should get more breaks than they actually do - business men should be incentivised in this country more than they are now as we are the ones that pay the "normal" (as you put it) employees wages.
Its hard work being self employed and we also lose out in other areas such as mortgage rates etc so quit your whining. I paid out over 30% of what I earned last year to the government.
Its 7% on top of the contributions you make throughout the year. On rough workings out I pay the same percentage in tax and NI that i used to when I was employed so there are no tax breaks from being self employed.
Its not an exclusive club, if being self employed is such a problem to you re tax payment then why not join rather than making it sound like we're getting something for nothing?
I believe the self employed should get more breaks than they actually do - business men should be incentivised in this country more than they are now as we are the ones that pay the "normal" (as you put it) employees wages.
Its hard work being self employed and we also lose out in other areas such as mortgage rates etc so quit your whining. I paid out over 30% of what I earned last year to the government.
#26
Originally Posted by Dream Weaver
Its 7% on top of the contributions you make throughout the year.
Originally Posted by Dream Weaver
Its not an exclusive club, if being self employed is such a problem to you re tax payment then why not join rather than making it sound like we're getting something for nothing?
Originally Posted by Dream Weaver
Its hard work being self employed and we also lose out in other areas such as mortgage rates etc so quit your whining. I paid out over 30% of what I earned last year to the government.
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