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#1 26-07-05 20:17:29

pk1
Guest

More Tax Stupidity

Just a quickie I thought you are taxed on your turnover am I right or is it on your take home :oops:  :shock:

26-07-05 20:17:29

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Re: More Tax Stupidity



#2 26-07-05 20:20:08

TDC
Verified Member
Registered: 30-04-04
Posts: 1,948

Re: More Tax Stupidity

take home   ie income less all business related outgoings


Im so good its unbelievable

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#3 26-07-05 20:21:33

paul1
Guest

Re: More Tax Stupidity

No, you're taxed on your figure after all deductions (valid deductions that is of course!!).....petrol, phone, franchise etc etc....

#4 26-07-05 20:22:39

pk1
Guest

Re: More Tax Stupidity

Cheers TDC so if my take home was £260 after petrol & franchise I should put about £26 by  :oops:

#5 27-07-05 07:45:35

TDC
Verified Member
Registered: 30-04-04
Posts: 1,948

Re: More Tax Stupidity

id double the £26 to be sure  wink course depends on your tax rate , better to have too much put by than not enough


Im so good its unbelievable

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#6 27-07-05 08:17:57

Morgan
Verified Member
Registered: 10-06-05
Posts: 202

Re: More Tax Stupidity

A complex issue.

Best advise I can give is either speak to your accountant or even the Tax office, there not as bad as they are portraid.

The big issue relates to paying tax upfront against potential earning, as I said best to get professional help, but remember the tax office do not charge for advise.

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#7 27-07-05 08:29:55

paul1
Guest

Re: More Tax Stupidity

I don't think its a complex issue at all. As TDC said you take your gross figure then deduct all business related costs and then you have the figure you will be taxed on. What could be more straight forward than that?

#8 27-07-05 08:50:18

Morgan
Verified Member
Registered: 10-06-05
Posts: 202

Re: More Tax Stupidity

Paul1

Yes I agree the actual calculating is easy, but the whole of tax is complex. I am guessing PK1 is just starting out as an ADI, so was trying to point out there is a little more to the tax side than calculating.

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#9 27-07-05 11:38:50

pk1
Guest

Re: More Tax Stupidity

Thanks - so is 10% of take home enough to put by or do I need more? Big Red said he useually had about 8% and ive been told 10% before so ??? :oops:

#10 27-07-05 12:00:29

TDC
Verified Member
Registered: 30-04-04
Posts: 1,948

Re: More Tax Stupidity

see my post above


Im so good its unbelievable

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#11 27-07-05 13:08:25

buz2
Member
Registered: 19-07-05
Posts: 124

Re: More Tax Stupidity

you pay tax on your drawings. ie wages

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#12 27-07-05 18:09:21

Redcap
Guest

Re: More Tax Stupidity

Hi All

Does any body know if there is a list of all the things we can claim for :?: Talking to differant ADI's and they all seem to have differant veiws on what you can claim.

There best advice was claim for it and hope for the best.

#13 27-07-05 19:03:14

Mmm
Member
From: W Sussex
Registered: 08-04-05
Posts: 262

Re: More Tax Stupidity

I was self-employed in a different industry before this and I always claimed what i could as long as i could justify it. You wont get done if you can show why you thought an expense was justified, what you will get done for is adding expenses which you couldnt reasonably have thought you should. I THINK. If in doubt speak to the tax office! And set aside about 20% of your profit, roughly.
Paul1 youre right but the only complication is deeming what counts as a business expense. And if you dig a bit deeper there are some surprising answers to that question....

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#14 13-03-06 17:55:57

stampeazi
Member
Registered: 13-03-06
Posts: 2

Re: More Tax Stupidity

Hi, I am just setting up on my own and am not sure about whether you can count your car as a tool of the trade or do you get taxed on it. Does any one know if it's best to lease or buy your training car when it comes to tax?

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#15 13-03-06 22:21:37

bigred
Verified Member
From: Kent
Registered: 25-02-04
Posts: 1,592
Website

Re: More Tax Stupidity

Hi Stampeazi,

First of all welcome to the forum!

The car certainly is a tool of the trade - a pretty important one at that big_smile

It's not like a company car where you can get taxed on it as a perk.

I have purchased most of my cars outright over the years, but have just switched to lease contract as it's an all in one price that you can plan and budget for without having to worry about residual values (what you sell it for) Just ordered a new focus 1.6 115ps titanium with parking sensors and a few other bits added for less than £95 per week. on a 2 year deal with driving school contract hire.

The overall tax figure is about the same after a period of time using either method of obtaining your car.

Regards,

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