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#1 03-05-10 02:14:00

JammyDoja
Member
Registered: 02-05-10
Posts: 1

hey im new to all this just a few questions.

recently joined on a franshise. they have told me to save £80 a week for tax. im not sure how this works. do i just get a big bill at the end of the year? i mean that £3520 a year with 4 holiday weeks. is that enough for tax? and also i have been told to claim for my petrol from the tax man. how easy is this to do? do i need to save reciets? a book of the milage? how detailed does the book need to be to record the millage? and shurly your petrol must cost you around £60 a week? if you claimed all that back woudnt that mean you just pay £20 tax a week? this is why i dont get it, then if you claim back mobile phone and other things shurly you woudnt pay any tax? im just really confussed about it. any help? thanks

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03-05-10 02:14:00

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Re: hey im new to all this just a few questions.




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#2 03-05-10 06:20:44

Dux
Verified Member
From: Manchester
Registered: 12-09-07
Posts: 985
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Re: hey im new to all this just a few questions.

The way I do it is to keep your receipts numbered in conjunction with an excel spreadsheet of all your outgoings. Then, at the end of the tax year, I pay an accountant to sort it for me.

On the tax thing, if you're doing your own accounts or paying someone to do it for you, you'll receive a bill in the following January for the amount owed, I do know people who've set up a direct debit with the tax people so they can spread the cost over the year, I personally just keep enough in my bank account to cover it and pay in a lump sum.

For your first bill they also take the first 6 months of next years estimated tax bill, they take this estimate from what they've charged you this year, so be ready, if you are charged £1000 tax for this year they will also add £500 on, then another £500 halfway through next year, in July. I'm presuming that if your 2nd tax bill does not come to the amount they've taken that they'll give you a rebate, as this year is only my 2nd year of paying tax this way I'm only guessing the rebate bit, others with more experience will know better.


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#3 03-05-10 06:31:33

Roadmaster
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Registered: 04-03-04
Posts: 5,670

Re: hey im new to all this just a few questions.

You need an accountant.

In the meantime,  keep a record of all income, and all expenditure plus receipts.

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#4 03-05-10 07:18:32

martin_t
Verified Member
Registered: 30-12-06
Posts: 357

Re: hey im new to all this just a few questions.

Talk to the taxman/lady, or go on the course that they run called 'Becoming Self-Employed' - it's free.

If you claim everything you are entitled to against tax, and declare everything you are expected to as income, and if you work an average of about 30-35ish hours a week, and pay an average franchise fee (which is a business expense, so claimable against tax, i.e. your tax bill goes down!) you might expect to have to find roughly £1500-£2000 to give the taxman/lady for income tax, national insurance and 'payment on account' at the end of your first year.

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#5 03-05-10 11:19:39

Rockin
Verified Member
From: Thornton Heath
Registered: 06-09-06
Posts: 200

Re: hey im new to all this just a few questions.

Sorry don't mean to be offensive, but surely these things should be looked at before deciding to go self employed regardless of your chosen profession. I would get an accountant as soon as you can to advise you. He will charge you too of course. In the mean time do as the others above advise.

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#6 03-05-10 12:11:30

colin166
Verified Member
From: Rushden, Northants
Registered: 31-05-09
Posts: 152

Re: hey im new to all this just a few questions.

Hi JammyDoja,
The £80 per week they have advised you to save is simply so that you will have the money to pay your tax bill at the end of the year.
Your tax bill we be assessed on the amount of money you have made from driving lessons after deducting all of your business expenses such as franchise fees, fuel, phone etc so keep all receipts and invoices and a record of money received from driving lessons.
You can then either use the services of an accountant, calculate the profit yourself and file your own self assessment on line or buy accounting software to use on your computer where you put the information in and it works out your profit for you.
So if you put that money away each week the bill when you get will be less painfull.

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