How Much Do You Tuck Away

Discussion in 'Managing Your Business' started by CNS-southwest, Nov 22, 2012.

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  1. CNS-southwest

    CNS-southwest Grand Master
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    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??
     
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  2. M.K Cleaners.co.uk

    M.K Cleaners.co.uk Grand Master
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    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.
     
  3. paulio

    paulio Active Member
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    Think you got the wrong end of the stick there ... Lol
     
  4. laddergarder

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    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.
     
  5. M.K Cleaners.co.uk

    M.K Cleaners.co.uk Grand Master
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    LOL Yeah. It does look dodgey though dont it
     
  6. rcproperty

    rcproperty Hero
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    dont forget to tuck some away from the misses to!!!! lol
     
  7. CNS-southwest

    CNS-southwest Grand Master
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    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??
     
  8. A.K WINDOWS

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    i put all mine under me bed i fell out the other day and nearly died worse than been on ladders a tell thee ;)
     
  9. CNS-southwest

    CNS-southwest Grand Master
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    Ahahahahahaha LMFAO

     
  10. harunh

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