Going to spend a bit of my tax money

[sarah32]

Ive worked out my earnings upto April, my deductions and Ive worked out my tax is going to be about £1000.

So Ive decided im going to buy some things out of it before I pay it all to the tax man.

Im not going to be able to spend that much but was thinking about £200.00


My wish list so far is
Juggling scarfs and egg shakers for our music and movement box

http://www.thechildmindingshop.co.uk...sket-514-p.asp this because i just love and ill play with it

http://www.thechildmindingshop.co.uk...felt-194-c.asp hate the plastic food and thought maybe would be better

http://www.thechildmindingshop.co.uk...air-2045-p.asp i have no disability toys yet and want to start building. Any other suggestions???????????

http://www.thechildmindingshop.co.uk...ads-2613-p.asp

http://www.elc.co.uk/toy/pink-sizzlin-barbeque/ some garden bits as threw away alot last year

http://www.elc.co.uk/toy/wheelbarrow-blue/

Any other suggestions????

Not looking to buy any big equipment as tiny garden and not alot of room in the house. Ive got enough multicultural now so moving onto disability. suggestions pleaseeeeee

Whats everyone else doing that will have to pay tax, do you just pay it or try and spend it???

[Chatterbox Childcare]

If you cannot afford to spend to much why spend?

If you spend £200 it is gone but if you pay tax on it of approx £50.00 you will have £150 in your pocket

I tend to keep as much as I can, even if I have to pay the IR a bit.

Have you checked the list of expenses to see if you have missed anything? There have been a couple on here in the last week

[sarah32]

oh and a play till as mindee as just broken my one.

[FizzysFriends]

I don't spend it, unless there is something I really want and I just use paying less tax as an excuse.

[tinkerbelle]

i swapped cars as mine wasnt tax efficient anymore id used all depreciation so i had a new car

[rickysmiths]

I must say I have never understood the mad rush to spend just at the end of the tax year. I spend as I need throughout the year. I don't like paying tax anymore than any one but I'd rather have the £150 in the Bank to spend on me!!!! and the family, its a good day out with a nice meal

[Pudding Girl]

But you wouldn't have that money in the bank as you'd have to pay your tax bill surely? Which is why it makes more sense to spend it on stuff for the business than pay it to tax man as you then have nothing to show for it.


Rather have more stuff to imporve my setting than pay it out and have nowt to show for it!

[Mrs.L.C]

Be careful. Last year Mr Tax man added half of this years estimated tax bill to last years bill making it more than I expected. Not all had to be paid by Jan but I will get another bill by June to pay.

I dont know if this is a new thing or because im now earning over a certain amount or what but if hes not done it to you yet, then he might



They just want our hard earned cash

[sarah32]

Im confused.

if Ive worked out my tax bill is going to be £1000 I thought I could take say £200 pounds from it and spend on equipment that I was looking to get and not have to pay the tax man this amount, for example my tax bill would be £800.00.

Is that not right?

[Pudding Girl]

I'm sure that's correct Sarah because I was saying I would do the same thing to bring it down if needed - I'll double check with hubs when he gets home.

And to the PP I think I remember hubs saying if your tax bill is over a certain amount ( think he might've said 1k) then yes they expect half for next year upfront too ( on account they call it)

[rickysmiths]

I'm sure that's correct Sarah because I was saying I would do the same thing to bring it down if needed - I'll double check with hubs when he gets home.

And to the PP I think I remember hubs saying if your tax bill is over a certain amount ( think he might've said 1k) then yes they expect half for next year upfront too ( on account they call it)

If your tax bill is over £500 for the year ending April 2009, so say it was the £1000 mentioned above, then by the 31st Jan 2010 you would pay £1000 and by the 31st July 2010 you would pay another £1000. You would then have paid £2000, you tax bill of £1000 and £1000 on account for the tax you will pay for tax year ending April 2010.

£500 is the trigger that means you have to pay your tax liability on account.

[Demonjill]

Hmmm that all sounds very complicated. Im not registered yet but these things like tax and stuff just seems very confusing and difficult.

[ruby]

i am like rickysmith spend mine as i go along

i have brought the food but becareful of the muffins as they came apart within the first few days but have to saythe rest of the food and everything else i have brought has been great.


enjoy spending


cathy

[sarah32]

Ive rang the tax office in the end, left message as called quite late.

Im going to see what they say about this paying on account as unsure if I will have to do that.

Will let you know what they say

[Chatterbox Childcare]

Just going back to the earlier part of this thread and hope this clears it up:

If you have £1000 PROFIT then you can either

Scenario A - spend £200 and pay tax of approx 25% on £800 which would be £200 which means you have £600.00 in your pocket

OR

Scenario B - pay tax of approx 25% of £1000 which would be £250.00 which means you have £750.00 in your pocket

Of this money you would pay 50% again in prepartion for next year so it would be £100.00 for scenario A or £125.00 for scenario B

You would have to be in profit for this to happen. Also be aware that you will pay Class 4 NI as well. This is compulsory and you cannot opt out of it.

[jeanybeany]

Well, I'm really confussed now, that's why I have an accountant! I really don't feel I have time to sort tax etc out and I just spend as I need to and If I see something nice! We'll see if I feel the same in a few months

[Pudding Girl]

If you have £1000 PROFIT then you can either

Scenario A - spend £200 and pay tax of approx 25% on £800 which would be £200 which means you have £600.00 in your pocket

OR

Scenario B - pay tax of approx 25% of £1000 which would be £250.00 which means you have £750.00 in your pocket

So if you remember to factor in the fact that you own the things from the £200 and have them to enjoy for your business, you are imho better off in the long run as you are kind of having £800 all told. IMO as I say.

[Chatterbox Childcare]

So if you remember to factor in the fact that you own the things from the £200 and have them to enjoy for your business, you are imho better off in the long run as you are kind of having £800 all told. IMO as I say.

Yes if you need them - what I am saying is I don't spend for the sake of it

[sarah32]

£1000 is what im going to have to pay in tax.

[uf353432]

Of this money you would pay 50% again in prepartion for next year so it would be £100.00 for scenario A or £125.00 for scenario B

buh? whats this bit? feeling very green and cabbage looking