How much tax do you pay?

[button1803]

hi guys,

 

if this has been asked befor i appologise, but i would like to ask any self-employed people, how much do you pay in National insurance and tax?

 

is it every 25p in every pound you earn? { trying to work out my day rate bring home}

 

like i say ive heard lots of different versions at hmrc website is a little confusing!

 

thanks guys

[gensetsteve]

hi guys,

 

if this has been asked befor i appologise, but i would like to ask any self-employed people, how much do you pay in National insurance and tax?

 

is it every 25p in every pound you earn? { trying to work out my day rate bring home}

 

like i say ive heard lots of different versions at hmrc website is a little confusing!

 

thanks guys

 

 

This will be inaccurate and brief

 

5-6 k pay no tax

 

up to 10k not much and about £2 a week nat ins

 

over 10k about 25% tax and more nat insurance on a percentage

 

over 45k a year 40% tax and thanks to the labour gov you pay lots more nat ins now.

 

If you keep buying toys to help the business keeps it all reasonable.

 

Hope this is helpfull and reassuring but seek advice from someone who knows what they are talking

[button1803]

tar mate, gives me a little idea to go on. thanks for your help

[Paul Jenks]

Best bet is to speak to a few different accountants. Gradually work out the pertinent questions you want answered, like what you can legitimately claim for. PPE, Office at home, heating, toilet roll, paper, internet, fuel, vehicle etc.

Ask someone you know and trust who is in business to recommend an accountant. A good accountant should save you considerably more than he or she costs per year. A self-employed arborist shouldn't be paying more than £250-500 per year depending on earnings and how tidy their shoebox of receipts is.

This may sound a lot to a self-employed person but in my view it's a sight easier to get a professional to do it and steer you to saving more than to slog your own way through it. You are more likely to stay off the HMRC radar if you have a bonefide accountant submitting your annual return.

However don't always take what they say as gospel, i.e. they may not know all the things that can be claimed for, and under new regulations they are supposed to report any cash dealings they discover if they feel tax is unlikely to be forthcoming.

[Paul Jenks]

Just to clarify.

The £250-500 is the bill for the accountant. The amount of personal tax you pay is far too complex to work out, but as I said, should be much less if you use a sensible and reasonable accountant.

Ps. Self-employed or running a company I've never not used one. I find it too dull and I'd rather work a couple of extra days cutting than sit at a desk for a week.

[button1803]

tar paul.

[Billy68]

get yourself an accountant a good one should save you more than they charge and keep on top of your books i use sage

[Stephen Blair]

save a quarter of everything you ever make, this will cover your bills and tax and stop you thinking more of the money is yours than it really is.

[likeitorlumpit]

save a quarter of everything you ever make, this will cover your bills and tax and stop you thinking more of the money is yours than it really is.

 

agree with this

[Kev Stephenson]

I like getting a big tax bill, it means I have pocketed a lot of money