How Much Do You Tuck Away

[CNS-southwest]

I think I'm right in saying as a sole trader you pay your tax and ni at the end of each financial yer?

So what % do you tuck away each month?

I was thinking if I tuck away 30% of my earnings then that should be ample for the tax man? And they any leftover can be used to purchase some goodie as a reward??

 

[M.K Cleaners.co.uk]

Ill assume this is a hypothetical situation were talking about. lol

They way i look at it, If you want to stay under the tax threshold. You wont leave your self with many options. I want houses, cars etc the full shabang. Theres no way I could buy all that while staying under the tax limit. It would look very suspicious.

 

[paulio]

Think you got the wrong end of the stick there ... Lol

 

[laddergarder]

Remember to put some money away for your expenses. I just take a small wage each month and put the rest away. You could work on the basis of your previous years after tax profits to work out what to take each month. You can ask to pay your tax monthly, an accountant can set that up for you. Also if you pay in lump sums, it is two payments per year. Jan and July.

You also make payments on account. Basically you pay your first years tax, then they want your to pay 50% of next years up front. So in your year two, you will have already paid half your tax, and have 50% remaining, then 50% for year 3. Basically your first year is a killer because of this, then it averages out.

Basically, get an accountant.

 

[M.K Cleaners.co.uk]

Think you got the wrong end of the stick there ... Lol

LOL Yeah. It does look dodgey though dont it

 

[rcproperty]

dont forget to tuck some away from the misses to!!!! lol

 

[CNS-southwest]

RC lol yes unknow that.

I don't want an accountant and would much rather do it myself lol.

However starting to think that once I get going I may just have to get one, ill have a word with my uncle and see how much he will charge. But he is the other side of London so maybe cheaper/ easier to use someone more local and not related??

 

[A.K WINDOWS]

i put all mine under me bed i fell out the other day and nearly died worse than been on ladders a tell thee /emoticons/wink.png

 

[CNS-southwest]

i put all mine under me bed i feel out the other day and nearly died worse than been on ladders a tell thee /emoticons/wink.png

Ahahahahahaha LMFAO

 

[harunh]

let your customers mind 30% of the money for u this way u can collect it when the taxman comes on 2 u lol

 

[CNS-southwest]

Lol nah don't trust em

 

[Gmeister]

*cough* I don't know what you mean?*cough*

 

[mark m]

also tuck a bit away for the winter you will get a lot of time off and wont be earning as much but bills have still got to be paid

 

[CNS-southwest]

Yer very true mate

 

[Extremecleansussex]

Remember to put some money away for your expenses. I just take a small wage each month and put the rest away. You could work on the basis of your previous years after tax profits to work out what to take each month. You can ask to pay your tax monthly, an accountant can set that up for you. Also if you pay in lump sums, it is two payments per year. Jan and July.
You also make payments on account. Basically you pay your first years tax, then they want your to pay 50% of next years up front. So in your year two, you will have already paid half your tax, and have 50% remaining, then 50% for year 3. Basically your first year is a killer because of this, then it averages out.

Basically, get an accountant.

He's only partly right here, you pay 50% on account in January and the other 50% in July so by year two you should just have to pay the on-account part for the next year.