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Mollymop
24-11-2009, 11:15 AM
It looks as though I will be paying tax for this year!:(

Doing my accounts and I am at £5190 profit already for this year and that's with ALL I can think of that needs deducting

If it carries on this way I will end up paying around £1000 in tax next year and I don't want to!! it's not fair!!!:( :cool:

miss mopple
24-11-2009, 11:18 AM
Me too :(

Ive had to pay tax (and alot of it :angry: ) for the last 3 years now.

I am actually cutting back on my volume of work as Id rather have a lighter load than shell it all out on tax

HomefromHome
24-11-2009, 11:19 AM
i'm paying tax for the first time - didnt account for the class IV NI though!!! grrr (thought as i was paying voluntary each month that was it!) doh!

Mollymop
24-11-2009, 11:19 AM
I am actually cutting back on my volume of work as Id rather have a lighter load than shell it all out on tax


That was what I was just thinking!! What is the poing in taking on and earning a little extra than the year before when you end up paying it back in tax - feels like I am working for nothing sometimes:rolleyes:

Straws
24-11-2009, 11:21 AM
I think next year 2010/2011 I will end up paying tax.... again thinking of cutting my workload and not replacing some who leave next september ........ I'd begrudge paying tax. Just out of curisoity what percentage is everyones expenses? mine was 53% last year

Straws xxx

Jelly Baby
24-11-2009, 11:24 AM
Hi i have paid it every year since starting and last year was the only year i didnt have to..lighter load now though which i much prefer! % wise i have no idea!

miss mopple
24-11-2009, 11:25 AM
Last year mine was 50% Straws. On target for the same this year.

Quality of life and more family time is definately more appealing than flogging myself and now we have paid some major debts off I can relax a little and work less :thumbsup:

If DH had his way I wouldnt childmind at all and would be a kept woman :rolleyes:

Mollymop
24-11-2009, 11:29 AM
I grossed £9700 last year and profit was £4600. So % wize just over 50%

This year my expenses are not as much, yet anyway

I took on new children last month which is going to start pushing my income up by about £150 a week.

So worried I am going to end up with a gross of about £15000

Hope I am not that lucky to be honest

Tink
24-11-2009, 11:32 AM
How much can you earn before you have to start paying tax?

kindredspirits
24-11-2009, 11:36 AM
personal allowance is a little over £6000 i think.
Mollymop looks like you need to go on a little spending spree!! :D work out how much tax you will need to pay and spend it on toys instead - might as well not let mr. tax man take it!! :littleangel:

youarewhatyoueat
24-11-2009, 01:27 PM
If you're paying tax you are still better off than not earning it and being below the tax bracket as its only a % of your earnings not all of it.

cuffleygirl
24-11-2009, 02:33 PM
buy something darn quick! - something big!

PixiePetal
24-11-2009, 03:48 PM
If you earn over a certain amount you have to pay for that year and also half of the next year based on current year so 1 1/2 times what it should be. Watch out, friend has been stung for huge bill this time :(

(not sure of exact details? but watch out and put extra by if you are earning lots :rolleyes: )

miss mopple
24-11-2009, 04:05 PM
Yep, that gets me every year Pixie. If your tax bill is over £500 they ask for 50% of the following years estimated bill up front :panic:

madasahatter
24-11-2009, 06:57 PM
If you're paying tax you are still better off than not earning it and being below the tax bracket as its only a % of your earnings not all of it.

That's my thought's too. My gross is around the 17K mark and around 9 to10K after expenses. Quite a chunk of my expenses are things that directly or indirectly benefit my family. If I went out to work I am certain that my electric and gas bills would not be much cheaper than now. I wouldn't be able to deduct part of the water rates and council tax. We would have far fewer toys/games etc that my DS can also play with. In the hols I wouldn't be able to claim for trips out that DS also enjoys and yes there are lots of things that I buy purely for the minded children. How many other self employed workers can immediately deduct 10% of their gross income and put it down as wear and tear? That's like giving me an extra 1.7K on the tax threshold.

I know it's hard giving our hard earned money to the tax man but it's much easier if you put something away each month. After all we should all contribute towards all the things we often take for granted....NHS, old age pensions, child benefit to name but a few.

Blackhorse
24-11-2009, 07:02 PM
If you're paying tax you are still better off than not earning it and being below the tax bracket as its only a % of your earnings not all of it.

thanks for saying this. :clapping: :clapping:

I'd rather earn more and pay a bit of tax then earning less...

and I also agree with Madasahatter!!

miss mopple
24-11-2009, 07:22 PM
I do see that side but in all honesty, although the money is nice I personally would rather earn less and have more time with my family.

I have flogged myself over the years as we needed the money. We still need me to earn, but fortunately we are getting to a stage in life where DH can afford to support us alot more financially so I dont have to earn as much. I am still very busy, but am making a conscious decision to turn extra work away now as I just dont need the money enough to forfeit my precious quality time (not to mention my sanity :laughing: )

ajs
24-11-2009, 07:37 PM
That's my thought's too. My gross is around the 17K mark and around 9 to10K after expenses. Quite a chunk of my expenses are things that directly or indirectly benefit my family. If I went out to work I am certain that my electric and gas bills would not be much cheaper than now. I wouldn't be able to deduct part of the water rates and council tax. We would have far fewer toys/games etc that my DS can also play with. In the hols I wouldn't be able to claim for trips out that DS also enjoys and yes there are lots of things that I buy purely for the minded children. How many other self employed workers can immediately deduct 10% of their gross income and put it down as wear and tear? That's like giving me an extra 1.7K on the tax threshold.

I know it's hard giving our hard earned money to the tax man but it's much easier if you put something away each month. After all we should all contribute towards all the things we often take for granted....NHS, old age pensions, child benefit to name but a few.

these are national insurance costs they don't come out of our tax, i'm pretty sure tax covers things like defence, and paying politicans etc

i agree i would rather earn more and pay a little tax then not earn it but it is painful paying the tax man anything

Lou
24-11-2009, 07:55 PM
Why dont you just pay an accountant!!!!! I always say this when these type of threads come up and i dont want to harp on but seriously it makes so much sense.

Yes you may have to pay maybe £60/£70 to an accountant but you can put that through too, and you will end up having to pay very little if any tax!!!!

babs
24-11-2009, 08:05 PM
Yep, that gets me every year Pixie. If your tax bill is over £500 they ask for 50% of the following years estimated bill up front :panic:

i think this is wrong u sudnt pay upfront for next years bill as when u work for someone u dot pay in advance...:angry: :angry: then what happens if u lose a mindee

madasahatter
24-11-2009, 09:05 PM
these are national insurance costs they don't come out of our tax, i'm pretty sure tax covers things like defence, and paying politicans etc

You got me there AJS! but you knew what I meant anyway. Taxes and National insurance are necessary (even though I don't always agree with the polititians on how it is spent)



Quote:
Originally Posted by miss mopple View Post
Yep, that gets me every year Pixie. If your tax bill is over £500 they ask for 50% of the following years estimated bill up front

i think this is wrong u sudnt pay upfront for next years bill as when u work for someone u dot pay in advance... then what happens if u lose a mindee

You are not actually paying up front you are actually paying last years tax bill but not being given quite as long to pay it. If you were employed you would be paying tax every month and by the end of the tax year you would have paid all the tax you were due to pay. Being self employed we are allowed extra time to pay our tax (because we have expenses to work out etc). If your tax bill is under £500 you are allowed 9 months in which to pay your tax bill. If it is over £500 you are given 3 months for 1/2 of your projected tax bill and 9 months for the other 1/2.

merry
25-11-2009, 07:31 AM
After all we should all contribute towards all the things we often take for granted....NHS, old age pensions, child benefit to name but a few.


Very well said!!!! My dh pays a small fortune in tax and this is his attitude too.

:)

HELEN10
25-11-2009, 09:33 AM
Thanks for that madasahatter, i didn't realise that, really thought we were paying half of following year up front. Think the best way is to put away monthly or even weekly, as like you say how you would be paying it with an employer, i am not good at doing that and have to find it all at once!

Agree that much better off earning more, after all what employed person would turn down a pay rise because of having to cough up more tax!!

Think its a different story though if people don't want or need the work, unfortunately i do.

HELEN10

purple rain
25-11-2009, 09:50 AM
i am facing the same thing this yr. 07-08 tax yr i didnt earn enough to be taxed so in 08-09 tax yr i did very well indeed!! i got an extra 500 in class 4 NI(well i think its class 4) plus what i was taxed (which in comparison to similar employed earnings was not that much, but i have got to pay half of next yrs in jan then the other half or next yrs in july or something. Doh. i didnt really understand it so when i phoned the accountant they explained it all. so i will be paying a half a yr up front every yr ....... unless you can get a detailed account of your predicted earnings and prove that you will earn less next yr.

i have had to do this as i have moved 50 miles away from where i used to live and had to build my business back up. so now instead of 2 full timers and 2 part timers i only have 3 part timers. there is no way i will earn the same as last yr!!

i do save 20% of my weekly/monthly earnings, this more than covers my tax after deductions and sometimes whats left pays for a holiday :clapping:

hope this helps a little.

The Juggler
25-11-2009, 10:19 AM
That's my thought's too. My gross is around the 17K mark and around 9 to10K after expenses. Quite a chunk of my expenses are things that directly or indirectly benefit my family. If I went out to work I am certain that my electric and gas bills would not be much cheaper than now. I wouldn't be able to deduct part of the water rates and council tax. We would have far fewer toys/games etc that my DS can also play with. In the hols I wouldn't be able to claim for trips out that DS also enjoys and yes there are lots of things that I buy purely for the minded children. How many other self employed workers can immediately deduct 10% of their gross income and put it down as wear and tear? That's like giving me an extra 1.7K on the tax threshold.

I know it's hard giving our hard earned money to the tax man but it's much easier if you put something away each month. After all we should all contribute towards all the things we often take for granted....NHS, old age pensions, child benefit to name but a few.


I know, going back out to employed work would be hard as you lose so many tax breaks. At the moment my tax and NI are about 10% of what I take in gross income. If I was at work it would be a third and you're right heating etc, food, toys would still need to be bought and paid for just not tax deductible any more!

Daftbat
25-11-2009, 12:21 PM
No one should get disheartened about paying tax - if you are elligable it shows you have a good business running. As the old saying goes "if you don't earn it, you don't pay it".

PixiePetal
25-11-2009, 01:20 PM
i am facing the same thing this yr. 07-08 tax yr i didnt earn enough to be taxed so in 08-09 tax yr i did very well indeed!! i got an extra 500 in class 4 NI(well i think its class 4) plus what i was taxed (which in comparison to similar employed earnings was not that much, but i have got to pay half of next yrs in jan then the other half or next yrs in july or something. Doh. i didnt really understand it so when i phoned the accountant they explained it all. so i will be paying a half a yr up front every yr ....... unless you can get a detailed account of your predicted earnings and prove that you will earn less next yr.

i have had to do this as i have moved 50 miles away from where i used to live and had to build my business back up. so now instead of 2 full timers and 2 part timers i only have 3 part timers. there is no way i will earn the same as last yr!!

i do save 20% of my weekly/monthly earnings, this more than covers my tax after deductions and sometimes whats left pays for a holiday :clapping:

hope this helps a little.


Well done for putting it by, a friend of mine hasn't (even though she was warned by others) and is now trying to get it together :(