Help with tax please

[Carl1991]

 

Hi all, I'm looking to do my self assesment from last year- my accountant has disappeared of the face of the earth so I'm looking to do it myself, I need to know about my vehicle going through, I bought my ranger inside last years tax year, its bread and butter of my business, not used for personal use, I paid 6k for it, but been told i can only put through 18% not the full value, I've been saving up every week by calculating my tax and holding it in an account, my income was 30,842 (ive rounded it up a tad to make the sums easier to 31) spent 13k in fuel, saws, insurance and the like, online my tax bill is coming up at 6k, which is more than I'd saved? I was using an online tax calculator and have put the required amount away every time I've been paid, it said I should be paying around 3000- 2k for last year and 1000 payment on account ready for next year.

I was under the impression of 31,000 take away 11850 tax free allowance, and dividing the remainder by 5 for my tax bill, it's my first year so I'm not that clued up.

I know this is more of an accountant problem and not arbtalk, I'm just looking for some advice off anyone who does their own books. Many thaks

 

 

[openspaceman]

2 hours ago, Carl1991 said:

my income was 30,842 (ive rounded it up a tad to make the sums easier to 31) spent 13k in fuel, saws, insurance and the like, online my tax bill is coming up at 6k,

 I'll wait to see what accountants like @Inoff the Red say but  you are confusing your gross turnover with profit (aka income) and that £6k is right for a profit of £31k.

 

Your profit was £18k and you have capital allowance on the truck to deduct from that, I'd say the real figure would be nearer £1400 tax

 

Have you paid your National Insurance? Don't miss it.

[ForestryFinance]

I would say you should probably just try and find another accountant to help. Mistakes made through not knowing something as complex as the UK tax system inside out can be quite costly, and I've tended to find a decent accountant are worth their weight in abacuses. 

[openspaceman]

52 minutes ago, ForestryFinance said:

I would say you should probably just try and find another accountant to help. Mistakes made through not knowing something as complex as the UK tax system inside out can be quite costly, and I've tended to find a decent accountant are worth their weight in abacuses. 

Yes for that turnover an accountant will only cost around £400 (as long as all the income and outgoings are well collated first)and it's worth that just for the saving in aggravation let alone tax savings they might make.

[topchippyles]

4 hours ago, Carl1991 said:

 

Hi all, I'm looking to do my self assesment from last year- my accountant has disappeared of the face of the earth so I'm looking to do it myself, I need to know about my vehicle going through, I bought my ranger inside last years tax year, its bread and butter of my business, not used for personal use, I paid 6k for it, but been told i can only put through 18% not the full value, I've been saving up every week by calculating my tax and holding it in an account, my income was 30,842 (ive rounded it up a tad to make the sums easier to 31) spent 13k in fuel, saws, insurance and the like, online my tax bill is coming up at 6k, which is more than I'd saved? I was using an online tax calculator and have put the required amount away every time I've been paid, it said I should be paying around 3000- 2k for last year and 1000 payment on account ready for next year.

I was under the impression of 31,000 take away 11850 tax free allowance, and dividing the remainder by 5 for my tax bill, it's my first year so I'm not that clued up.

I know this is more of an accountant problem and not arbtalk, I'm just looking for some advice off anyone who does their own books. Many thaks

 

 

 

You can claim the van depreciation or go down the mileage route which might be easier 

 

You would need to put the depreciation as capital allowances 

Edited August 20, 2019 by topchippyles

[topchippyles]

• Mileage, vehicle costs & travel. You should keep a log of both personal and business mileage. When you first introduce a vehicle to the business, you may account for your vehicle expenses using HMRC’s mileage rates. The first 10,000 business miles can be claimed at a rate of 45p per mile; 25p per mile thereafter. The mileage rate covers the cost of fuel, servicing, insurance, tax, MOT, depreciation of the vehicle etc. However, you may claim for specific business journey costs such as tolls, congestion charges and parking fees and the finance element of a hire purchase or finance lease in addition to mileage. If you don't use the set mileage rate, you can claim a proportion of the actual vehicle running costs. The amount you can claim is in proportion to the vehicle’s business use, which can be established using the vehicle’s mileage log. Travel and accommodation on business trips and between different places of work can be claimed as well; but you cannot claim for “commuting” i.e. travel from home to work. Meals and subsistence are not generally allowable, unless they are in respect of a trip that qualified as business travel. The cost to purchase a vehicle cannot be claimed as an expense if you are using the mileage rates, as the rates are deemed to cover the depreciation of the vehicle. If you are accounting for vehicle expenses using the actual costs incurred, the cost of the vehicle, may qualify for relief via capital allowances.

[Carl1991]

 I'll wait to see what accountants like @Inoff the Red say but  you are confusing your gross turnover with profit (aka income) and that £6k is right for a profit of £31k.
 
Your profit was £18k and you have capital allowance on the truck to deduct from that, I'd say the real figure would be nearer £1400 tax
 
Have you paid your National Insurance? Don't miss it.

Yes sorry, taxable profit of 18000, then the tax free allowance of 11850, with a bill of 20% of that figure. But its saying £5700, bill of 3800 for 2018/19 and payment on account for next year of 1900. I will try to find an accountant. Thanks

[donnk]

yes get a bean counter on it, no way its more than £1500.

[htb]

So your near 6k is this yrs tax bill plus a payment in advance for next yrs tax bill. Your tax bill next yr will be reduced by the advance you have already paid its a hurdle you have to get past. I agree the the £3800 seems high.

[Carl1991]

No problem with the payment on account- I knew that was coming if tax bill is over 1k, it's just the bill from this year I cant get my head around, I can only put it down to the amount of my vehicle that they've allowed. I used a calculator every week online, which showed me exactly how much I had to pay, and then I put away more than it said, I've had bill estimations which would leave me a bill I cant actually pay, unless i put it on my credit card and had the extra burden on that. Thanks