Tax Return

[Hodge]

I have a fairly small turnover and I think £250 for an accountant is not realy going to save that much. I understand the tax banding ie 10k there is no tax and its 20% for upto 32k after. But what is an asset? All my assets depriciate if i put neat unleaded in my stihl fs460 it goes from being worth £400 to £0. My mate had a turbo over run and blew his engine if that happens to my van its worthless. How can tools be assets? The next I have trouble understanding is if you get a £500 tax bill does that mean you could of bought a MS260 or 560XP that year instead of buying tax? I guess you have your gross turnover and you subtract your expenses which gives you your net and the higher you expenses the better. I do struggle with figureing it out but alot of people i speak to do aswell. Thanks guys its getting clearer slowly lol.

 

 

From your post it really would help you to get an accountant👍

[doobin]

I have a fairly small turnover and I think £250 for an accountant is not realy going to save that much. I understand the tax banding ie 10k there is no tax and its 20% for upto 32k after. But what is an asset? All my assets depriciate if i put neat unleaded in my stihl fs460 it goes from being worth £400 to £0. My mate had a turbo over run and blew his engine if that happens to my van its worthless. How can tools be assets? The next I have trouble understanding is if you get a £500 tax bill does that mean you could of bought a MS260 or 560XP that year instead of buying tax? I guess you have your gross turnover and you subtract your expenses which gives you your net and the higher you expenses the better. I do struggle with figureing it out but alot of people i speak to do aswell. Thanks guys its getting clearer slowly lol.

 

That's why the accountant is worth the money! It's not even £250- what's your day rate? £150? So the accountant costs you £100 in real terms. You could be drinking beer right now rather than worrying.

 

Or wine, if you prefer.

 

Simples.

 

PM me if you want the details of mine, he's a really sound bloke. Always helpful on the end of the phone if I need advice throughout the year, exceptional value for money really.

[jaime bray]

Unfortunately it seems that many of us are hypocrites, me too for the first 4 years of business in 1996. We complain when we quote a job and the customer then gets the job done cheap by a cowboy or even a reliable tradesman but with little specific knowledge. Ultimately this costs the customer more in the long run with ill health etc etc to their trees. Yet amazingly, we seem it perfectly ok to grasp a rough knowledge of an industry i.e accountancy, and do their job, ultimately costing us money, whether that be through tax expenditure on our behalf or not claiming for stuff we could have, should have and would have had we not tried to do everything ourselves. Unless your turnover was £3000, or a figure of similar size id really consider professional advice. You are a professional tradesman, get the right advice.

 

Don't forget, if your tax bill is 800quid, you will have to pay half of that on account for the tax year that you have not yet filed your accounts for. This ensures that as do employees pay immediately, that in some part businesses do too for earnings during any tax year. Good luck chap

Edited January 9, 2015 by jaime bray

[Chris Sheppard]

The next I have trouble understanding is if you get a £500 tax bill does that mean you could of bought a MS260 or 560XP that year instead of buying tax?

 

No, not quite.

 

That £500 would be the tax off of a larger figure, if 20% it would be the tax from a £2500 liability for example.

 

Buying something like a £500 saw would just knock that £2500 down to £2000 and then the tax down to £400 (i.e 20% of the 2000).

 

It's not quite as stright forward as that but hope that makes abit more sense?

[Two Acres]

I have a fairly small turnover and I think £250 for an accountant is not realy going to save that much. I understand the tax banding ie 10k there is no tax and its 20% for upto 32k after. But what is an asset? All my assets depriciate if i put neat unleaded in my stihl fs460 it goes from being worth £400 to £0. My mate had a turbo over run and blew his engine if that happens to my van its worthless. How can tools be assets? The next I have trouble understanding is if you get a £500 tax bill does that mean you could of bought a MS260 or 560XP that year instead of buying tax? I guess you have your gross turnover and you subtract your expenses which gives you your net and the higher you expenses the better. I do struggle with figureing it out but alot of people i speak to do aswell. Thanks guys its getting clearer slowly lol.

 

I could drive a car fast, but I won't be as good as Lewis Hamilton, and I'll be much more likely to crash. Concentrate on what you're good at and let your accountant do his job. You'll earn more because you'll be working more and worrying less. When you begin talking about how to depriciate assests to best advantage then you really do need to invest in an accountant and build a relationship with them. Don't forget that the rules on what can be written off and what can't changes from year to year to - you need a pro who is on top of all that, you won't be able to IMHO. When I did my first years books the revenue called me for a little chat. They patiently explained that I'd made some errors, luckily for me in their favour:thumbup: They helped me out that rightbt I doubt they'd ave been so accommodating if the mistakes had been in my favour.

[hamdogg]

Unfortunately it seems that many of us are hypocrites, me too for the first 4 years of business in 1996. We complain when we quote a job and the customer then gets the job done cheap by a cowboy or even a reliable tradesman but with little specific knowledge. Ultimately this costs the customer more in the long run with ill health etc etc to their trees. Yet amazingly, we seem it perfectly ok to grasp a rough knowledge of an industry i.e accountancy, and do their job, ultimately costing us money, whether that be through tax expenditure on our behalf or not claiming for stuff we could have, should have and would have had we not tried to do everything ourselves. Unless your turnover was £3000, or a figure of similar size id really consider professional advice. You are a professional tradesman, get the right advice.

 

 

 

Don't forget, if your tax bill is 800quid, you will have to pay half of that on account for the tax year that you have not yet filed your accounts for. This ensures that as do employees pay immediately, that in some part businesses do too for earnings during any tax year. Good luck chap

 

 

What you mean pay half of Tay on account?

[mowandgo]

Ha Ha I have been told multiple times by people with more experince than me to get an accountant I guess tha means I need an accountant. I have heard theres alot of cowboy accountants out there like any trade so a good one is worth every pennie and a bad one is like **** in the bed. Dobin can I have the number of your accountant sounds like a gooden and the year round advice is what would be very helpful.

[Two Acres]

Ha Ha I have been told multiple times by people with more experince than me to get an accountant I guess tha means I need an accountant. I have heard theres alot of cowboy accountants out there like any trade so a good one is worth every pennie and a bad one is like **** in the bed. Dobin can I have the number of your accountant sounds like a gooden and the year round advice is what would be very helpful.

 

hallelujah

[Darrin Turnbull]

What about using a Book keeping.

[Darrin Turnbull]

Sorry i meant Book keeper