10 grand tax bill, is this normal

[Phil]

Evening gents, as a one man band is paying around 10 grand tax every year normal? Am I too honest?

I had this to pay last year and I know it will be more this year, its like everything I earn from now to Dec will just be for tax for the dole dossers to go on holiday with. Cant be right?

Yes I have accountant.

 

[Phil]

I won't be earning anymore than all the guys on here, so are you saying I've paid half of 2015's tax already and I'll be getting a similar or higher bill in Jan?

I know I earn't a lot more in 2014 than I did in 2013.

 

[mfgs]

I think you should ditch your accountant if he hasn't explained any of this to you. The tax you pay in July is an estimated 50% for the following year.

 

[Phil]

To be honest I haven't seen him for about 4 years, I drop off and pick up in flying visits and only see receptionist.

I'd ring him now but its Saturday then during the week there's no time.

It seems a chunk of the bill is class 4 NI now i'm researching it.

 

[Last Plumber]

To be honest I haven't seen him for about 4 years, I drop off and pick up in flying visits and only see receptionist.

I'd ring him now but its Saturday then during the week there's no time.

It seems a chunk of the bill is class 4 NI now i'm researching it.

It will be. That's what I mean.
If you're Ltd, you pay NI on your salary but the company doesn't pay any.
Your salary can be as little as the tax threshold although you are better to pay a little tax and NI .
That allowance I mentioned earlier ( employing someone) altered this year so my NI went up a bit but you need to weigh up whether employing or having another director is worth it.

If you're Ltd, your tax bill is calculated after the year end and you pay it over. Next years is done the same way so you also get shut of the daft paying up front idea.

If your Net profit is £30000 plus it will be cheaper to be Ltd I reckon.

Talk to a proper accountancy firm. Mine charge a lot but I think it's worth it

 

[JAH HEATING]

Get a new accountant, someone who will advise you better

Seems like you're paying payment on account, so when you put this year's books in. That figure could of dropped.

 

[Shower Engineer]

Going Ltd can be a good idea for some, I have been Ltd for about 15 years and wouldn't change it but you have to remember to factor in the new 7.5% dividend tax, that takes a lot of the financial advantage away.

 

[lame plumber]

take some cash payments occassionally

 

[rocketmanbkk]

Are you getting paid in cash?

If so, do you declare all the cash?

If you're earning well then there'll be tax to pay

Life is life