Paying January's tax bill

[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