Paying January's tax bill

[Bob Geldoff1234]

Are any other sparks on here feeling fed up after having to part with January 31st tax bill?
To add insult to injury I have also had to pay the accountants bill and the wholesalers bills.
To top if all off,most of my jobs are ongoing so haven't received any money for a couple of weeks.
The bank balance is in free fall

 

[buzzlightyear]

I do my own books and tax on line
Love it , saves me a lot of dosh ,to pay the tax man .

 

[littlespark]

I'm still under the self assessment threshold for paying tax

No rebate this year though

 

[Octopus]

Are any other sparks on here feeling fed up after having to part with January 31st tax bill?
To add insult to injury I have also had to pay the accountants bill and the wholesalers bills.
To top if all off,most of my jobs are ongoing so haven't received any money for a couple of weeks.
The bank balance is in free fall

Are you real?

It’s easy to save every month ..... work out your nett profit, deduct £1000 then multiply what’s left by 30% and put that amount in a savings account

Or do as I do and buy premium bonds .... and yes I do get the odd winning bond ...

 

[Andy78]

Err, all these bills are surely expected, anticipated and budgeted for ?

 

[buzzlightyear]

I throw all the bills in a shoe box and every month put them in book .
And total them up .

 

[Shoei]

Are you real?

It’s easy to save every month ..... work out your nett profit, deduct £1000 then multiply what’s left by 30% and put that amount in a savings account

Or do as I do and buy premium bonds .... and yes I do get the odd winning bond ...

That's good advice. For anyone with a mortgage it's worth thinking about an offset mortgage. With the savings account offsetting, it can save a tidy sum in reduced mortgage interest. Doesn't work for everyone but worth a look.

 

[Bob Geldoff1234]

I didn't say it wasn't expected.I was just wondering if any other sparks are fed up after paying out their tax bill?
As my advice here on other threads,I have a large nest egg to fall back on,as payment can be up or down from one month to the next.It just hurts when you have to pay it out

 

[rolyberkin]

My accountant found out I was on the wrong tax code and got me an £86 rebate ..............then hit me with a bill for £240, that was on top of the £900 company accounts bill:-(

 

[pirate]

The vagaries of taxation...

I have experienced many, but here is just one:

I sold my business.
The buyer agreed to pay for the property and work in progress, plus a sum for goodwill.
For ease of illustration, let's say he agreed to pay me £100,000 for the goodwill, but over 3 years, so 33k in year 1, 33k in year 2 and 34k in year 3.
He paid me the first instalment.
The taxman says ok, but the actual sum is £100k, so I want the tax on the whole amount now, off the first instalment.
Oh, say i...but I didn't get 100k, I only got 33k.
Too bad, said the taxman. You pay now! you won't have to pay next year, or the final year, but you must pay it all, on the whole amount agreed, although not paid.
What if he defaults?
Oh, well then you can apply for a refund!
So I have to pay tax on money I haven't received, and may never get?
Yup...them's the rules!
Suppose he paid me 33k a year for 3 years, as a consultancy fee?
Ah, that's just a device to get round the "goodwill" treatment, taxwise...

Ba****ds!

That is only one of many tricks they play on you, trust me!

However, on a lighter note, for some reason I have no idea about, HMRC, for the first time in my life, didn't ask me for any money today! YAY!


I expect they will catch up at some point in the future...

Ba****ds!

The only reason is that I had to pay some notional payment to account in anticipation of next year's profits, but as I only traded for 1 month of the 2017/18 taxyear, that payment as waived or reduced or something...i don't know, I don't understand, and I don't care!

Sometimes, being retired has its good points, and yet this is the one that makes me smile most!
Suffice to say, I didn't pay them anything today! Hurrah!

Tune in 3 months from now, and I bet it's a different story...

 

[SJD]

It’s easy to save every month ..... work out your nett profit, deduct £1000 then multiply what’s left by 30% and put that amount in a savings account

You can also pay HMRC well before the deadline. I usually pay my corporation tax 5 or 6 months early. They pay interest, at a better rate than a typical savings account.

 

[Baddegg]

The vagaries of taxation...

I have experienced many, but here is just one:

I sold my business.
The buyer agreed to pay for the property and work in progress, plus a sum for goodwill.
For ease of illustration, let's say he agreed to pay me £100,000 for the goodwill, but over 3 years, so 33k in year 1, 33k in year 2 and 34k in year 3.
He paid me the first instalment.
The taxman says ok, but the actual sum is £100k, so I want the tax on the whole amount now, off the first instalment.
Oh, say i...but I didn't get 100k, I only got 33k.
Too bad, said the taxman. You pay now! you won't have to pay next year, or the final year, but you must pay it all, on the whole amount agreed, although not paid.
What if he defaults?
Oh, well then you can apply for a refund!
So I have to pay tax on money I haven't received, and may never get?
Yup...them's the rules!
Suppose he paid me 33k a year for 3 years, as a consultancy fee?
Ah, that's just a device to get round the "goodwill" treatment, taxwise...

Ba****ds!

That is only one of many tricks they play on you, trust me!

However, on a lighter note, for some reason I have no idea about, HMRC, for the first time in my life, didn't ask me for any money today! YAY!


I expect they will catch up at some point in the future...

Ba****ds!

The only reason is that I had to pay some notional payment to account in anticipation of next year's profits, but as I only traded for 1 month of the 2017/18 taxyear, that payment as waived or reduced or something...i don't know, I don't understand, and I don't care!

Sometimes, being retired has its good points, and yet this is the one that makes me smile most!
Suffice to say, I didn't pay them anything today! Hurrah!

Tune in 3 months from now, and I bet it's a different story...

Tax on monies got from looting and pillaging! What is this country coming to!!!

 

[tlangdon12]

It's not like your business had to buy Christmas presents, so you should have some money in January to pay the tax man.

 

[davesparks]

It's the payment on account for next year that winds me up!

 

[HappyHippyDad]

It's the payment on account for next year that winds me up!

I agree. If you are employed you pay your tax monthly as you get paid. When self employed we have to pay it in advance, I can't quite see the fairness in that (due to the lost interest). The only time it's going to put a smile on your face is the year you retire and don't have to pay any tax!

 

[plugsandsparks]

Crumbs, glad i'm limited, tax due 9 months after year end, happy days. Not sure how long that will continue but has for the last 8 years.
That means i have always collected all debtors by then so books are nice and clean.

 

[telectrix]

I agree. If you are employed you pay your tax monthly as you get paid. When self employed we have to pay it in advance, I can't quite see the fairness in that (due to the lost interest). The only time it's going to put a smile on your face is the year you retire and don't have to pay any tax!

wrong.... if you have a company pension or a private pension; any other forms of income e.g. you rent a house.flat out, once you income exceeds c. £11,000 per year, you'll pay tax on all income above that figure. so much for saving for old age.
and if you ever need to go into a nursing/care home, they'll take everything you've worked 50 years for including your home. better off spending it all on booze and women.

me cynical... nah.

 

[Deleted member 26818]

Retirement age means you no longer pay NI.

 

[Nigel]

It's the payment on account for next year that winds me up!

Yep. They make it sound like they are doing us a favour by only asking for half in jan and the other half can wait until June.

On top of this company CIS which shows me in credit to the tune of £50k.

In Oct this year Reverse Charge VAT comes into effect which means that HMRC will recieve VAT directly from the Principle Contractor rather than using the sub-contractor. This means that VAT contractors will now need yo pay VAT on goods and materials upfront and then claim back. Further hindering cash flow.

HMRC are just using business as a cheap form of credit.

 

[Nigel]

wrong.... if you have a company pension or a private pension; any other forms of income e.g. you rent a house.flat out, once you income exceeds c. £11,000 per year, you'll pay tax on all income above that figure. so much for saving for old age.
and if you ever need to go into a nursing/care home, they'll take everything you've worked 50 years for including your home. better off spending it all on booze and women.

me cynical... nah.

Saving for old age is sensible. You have alteady paid tax on that money so it cannot be taxed again as income tax.

 

[Octopus]

Saving for old age is sensible. You have alteady paid tax on that money so it cannot be taxed again as income tax.

Hum not correct.

When you put money in your pension pot, HMRC pay your 20% tax too ....

Then when you draw the money out it is taxable

 

[Nigel]

Hum not correct.

When you put money in your pension pot, HMRC pay your 20% tax too ....

Then when you draw the money out it is taxable

Hum. I never said putting money into a pension pot. I said saving.

 

[plugsandsparks]

When you put money in your pension pot, HMRC pay your 20% tax too ....

Then when you draw the money out it is taxable

I disagree with the premise here. I think of it as :
When you put money in your pension pot, HMRC dont tax this money on the way in but tax it on the way out, so only once, however GB did a dirty on us all and started taxing the dividend income that the investments were made using our pension money, reducing the growth significantly - robbing *astards

 

[buzzlightyear]

when I retire I'm off to become a Buddhist monk ,and live out my neutral life ,in a nice warm country ,sod the family , I will burnt like Viking funeral .

 

[HappyHippyDad]

when I retire I'm off to become a Buddhist monk ,and live out my neutral life ,in a nice warm country ,sod the family , I will burnt like Viking funeral .

You seem like a nice chap Buzz but I rarely understand what you're talking about .

 

[shaun1]

Annoying as the tax payment on account is, it is techically on money you have already earned. Unless you earn it all at the end of the year, as you are already 10 months in to the next tax year when they take the first half.

 

[Starjack]

It's part of running a Business, suck it up and get on with it.

 

[Nigel]

Annoying as the tax payment on account is, it is techically on money you have already earned. Unless you earn it all at the end of the year, as you are already 10 months in to the next tax year when they take the first half.

No it is not. It is an estimate on the next twelve months Jan - Jan. my tax year is June - June.

 

[Deleted member 26818]

Because I’m paid CIS, the tax man owes me money from my first wages of the tax year.
The money owed just increase every time I’m paid.
By the end of the tax year, if I’ve earned more than my personal allowance, I’m owed at least £2,000.

 

[ses]

Are any other sparks on here feeling fed up after having to part with January 31st tax bill?
To add insult to injury I have also had to pay the accountants bill and the wholesalers bills.
To top if all off,most of my jobs are ongoing so haven't received any money for a couple of weeks.
The bank balance is in free fall

Yes try paying a £20k wholesaler bill a £30k tax bill and then £15k vat bill all in one month as well as all your normal business expenses and staff wages and then knowing you have to pay another tax and vat bill again in March and then another one in July

 

[buzzlightyear]

Yes try paying a £20k wholesaler bill a £30k tax bill and then £15k vat bill all in one month as well as all your normal business expenses and staff wages and then knowing you have to pay another tax and vat bill again in March and then another one in July

I'm now crying in me tea ,after reading this .

 

[123]

I do my own books and tax on line
Love it , saves me a lot of dosh ,to pay the tax man .

I for one would love to see the amount typing errors on your tax return

 

[buzzlightyear]

for one would love to see the amount typing errors on your tax return

when i do me tax return i put down cant spell ,but i can count 123.

 

[ipf]

when i do me tax return i put down cant spell ,but i can count 123.

Is that supposed to prove it, buzz?