Expenses, who pays it and when???

[Fairy Tanya]

Hello everyone.

Here is my question about that lovely subject " EXPENSES "

I have done my own speadsheet for my accounts, working out my in's and outs using those lovely formulas you get when using excel. That was a doddle.

BUT
now that I have worked out my receipts for expenses (including my start up expenses and my ongoing expenses) my poor credit card has kind of had a bit of a heart attack.
Tho, I have been paying my credit card for my normal everyday life., its finally broken due to the expenses.
SO
where do I get the money to pay the expenses. Once I get paid from my clients, Can I use that money to pay the expenses on my credit card. which is NEXT WEEK.
OR
do I have to wait until the tax man has taken his share?? ( which I doubt he will as haven't made enough yet).

Could someone clear this up, as it has gone over it's limit, and all I want to do is clear it now that I'm earning.
Thanks
Tanya

[MrAnchovy]

Yes, any money that you receive is yours to do with as you want - or need.

You don't have to give any money to the tax man until January 2013, 16 months away, although it is a good idea to make sure that you have enough put by when that time comes.

But you won't have made any profit yet (you have your start-up costs to recover first), so don't worry about this until you have at least paid them off!

After a couple of months, sit down and do a budget for the rest of the tax year - work out how much you think you will earn, and what your expenses are likely to be, then work out roughly how much tax and NI you will have to pay (take £7,400 off your budgeted profit, divide what is left by 10 and then multiply by 3) - this will give you an idea of how much you should have saved for the tax man by the end of March.

[Fairy Tanya]

Thank you,

PHEW!!!
there was me sitting thinking that I would have to wait until the end of the tax year to clear the expenses.
Oh - thats good. I will get the whole lot paid off in 2 weeks time. then I'm clear.

YAH!!!
Thank you for your help

Tanya
:clapping:

[Fairy Tanya]

Also forgot to ask,
you mentioned that I wwon't need to pay the tax man until January 2013 for the tax year of 2011 - 2012.
I thought you had you get that sorted by mid 2012 to be paid?? or is January 2013 the deadline to have it paid by???

Thanks
Tanya

[aly]

tax is in arreras, so this tax year that you pay this year was for 2010/2011, next year you pay for 2011/2012 after april 2012

[Fairy Tanya]

yeah got that, just wasn't sure of the deadline to have it paid by, as 2011-2012 would finish april, I would have assusmed they would have wanted all the paperwork and bill to be paid before the end of dec 2012..
Tanya

[MrAnchovy]

The deadline is 31 January for your tax return to be filed online and all tax paid. In practice it is best to do your tax return as soon as you can (April/May) and then you know how much you need to pay, but you still don't have to pay anything until 31 January 2013 for this first year.

Next year it is different, but you don't need to worry about that now.

[Fairy Tanya]

ooh, that's good, I'll Put that on my calendar.

So what is going to happen next year?? I understand that the tax bracket is going up (the government gits) but not sure when and why???
is there anything else, or is it not too bad that i have to worry.

Tanya

[MrAnchovy]

So what is going to happen next year?? I understand that the tax bracket is going up (the government gits) but not sure when and why???

No, it's nothing like that - and any changes the government makes that affect you will mean you pay LESS tax :D

It's just that if you make lots of profit between now and the end of March, you have to pay some of the tax due for 2012/13 in January 2013 as well - like I say, don't worry about that until you have done your return for 2011/12.

[Fairy Tanya]

Fantastic,

BUt

Profit - What Profit ??????

hahahhaaa

[Please help]

Hey everyone
I am due to leave my current (secure) job to start childminding on the 14th October (i still dont have any mindees :eek: )

The reason I am writting is I am totally stuck with what to do about tax national insurance well everything to do with the business side of things.

I was booked on a course with my cc to go over all of it but it got cancelled and isnt due to happen again till jan :( which is no good for me.

I have spoken to business link who have sent me an e-mail with lots of attachments full of what seams gobbldy gook.

Please could somebody give me some advice on where to start please.

Thanks in advance xxx

Sorry I posted this in the wrong place sorry :blush: