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Keeping On Top Of Tax

Discussion in 'Business & Tax Advice' started by pokerjk, Sep 27, 2011.

  1. pokerjk

    pokerjk Senior Member

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    I'm from the UK and this year registered as a sole trader.

    So at the end of the year I will have to pay tax on my earnings over a certain figure.

    How do control your money for paying your tax bill at the end of the year? Do you open a new bank account and take 20% of every payment you receive and transfer that 20% into the account? This way all the money in this new account can be used to pay the tax bill at the end of the year.

    I don't want to get to April and not have the money...? :eek:
     
  2. mattbowden

    mattbowden Regular Member

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    Get an accountant or separate the tax at source. I pay my tax and vat every three months so I dont get a nasty bill at the end of the year. Pm me if you need any help.
     
  3. SteX13

    SteX13 Registered Member

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    Just be clever with your money and if your not earning say 50k+ you can easily pay a small amount of tax and not 20%.

    You need to speak to an accountant as you will save £1000's.

    Your first £7,475 is tax free. Than dependant on your business buy numerous other things to come off your tax.

    Could your business justify the use of a car?

    Get one on finance and that + insurance will come off aswell as 100% of your fuel.

    Phone bills? New computers? Decent mouse, keyboard, printer THE LOT!

    Just go crazy, spend £1000's on computer equipment rather than using that crappy laptop or the tax man will get it.

    If you really need someone to speak to my bro in law is an accountant and will do your books for a decent price if need be?
     
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  4. mattbowden

    mattbowden Regular Member

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    Get an accountant or separate the tax at source. I pay my tax and vat every three months so I dont get a nasty bill at the end of the year. Pm me if you need any help.
     
    • Thanks Thanks x 1
  5. StarscreamBeats

    StarscreamBeats Newbie

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    I would LOVE to live in the U.K... 20% tax? I live in Stockholm, Sweden. I pay 50% on everything I earn. If I make over $100K I will have to pay over 54% :zx11pisse
    On the other hand, I only pay $10 If I need to go to the doctor. And studying is free in every college... Sucks owning a business in sweden though. Just look at IKEA (swedish company for those who didnt know), guess 3 times why they are not registered on the stock market. They claim it is a "private company". 80% of their earnings goes into "non-profit" organisations in Holland.
     
  6. Jon0

    Jon0 Regular Member

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    Ha! It's only 20% if you earn under £37,000. After that it's 40% until you reach £150,000 where the tax rate is 50%.
     
  7. pokerjk

    pokerjk Senior Member

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    I don't need to spend £1000's on computer equipment, car etc. Wouldn't this cut into my profits as well? As if I earn £5000 over the £7475 limit and then spend £5000 in computer equipment, car's etc I will no money left. I am more of a saver than a spender :eek: I suppose that's bad as it means paying full amount of tax. And I thought you could'nt claim tax on fuel anymore?

    Cheers
     
  8. wokaka

    wokaka Senior Member

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    haha man, must be sux. I was on vacation in Sweden last summer and yeah people there told me how sux it is to be an entrepreneur there.

    However, it's nice to only pay $10 to doctor and how studying is free. Here in Indonesia you have to pay full expense to a doctor and there's no insurance unless you invest in commercial insurance companies like Prudential or Allianz. College is hella expensive too, you even have to pay hourly parking fee in some fancy colleges..

    Tax is at 35% maximum though and you can even fool the government because they won't look into your bank account unless they suspect you fool them. But if you don't file anything suspicious in your report etc. they won't notice. I paid only 1/5 from what I supposed to pay last year