Speaking to another local window cleaner

[Crystalalan]

Ha ha . Makes you wonder how much your brand new Vauxhall Corsa or polo would be worth if you were to tuck it away for 30 to 40 years in your garage and moth ball it

 

[Pjj]

Years ago I had  mk2 cortina 1600 E ,mk2  lotus cortina , escort mk1 RS 2000 ,mk1 Mexico , mk2 Mexico, 1800 BDA , 2x mk2 RS2000 , I dred to think what they would be worth now , all were immaculate as I was a sprayer panel beater at the time .????

 

[harunh]

This always makes me laugh when you hear of self employed window cleaners boasting that they earn 2k a week ect ect. 

The things they forget..

1. £104,000 a year, your in the top tax bracket as a self employed person, just your payments on account for the next year for self assessment is going to be something like 15k on top of your already eye watering personal tax bill for the current year, and that's not taking into account your VAT liability. You'd have to be really stupid to work that hard to give just over a 3rd of it away to the tax man, you might as well take 2 days a week off and reduce your income, to reduce your tax liabilities. Over a 3rd of your hard graft is going straight to the taxman at that level. ?

You need to be set up as Ltd company really to benefit from that level of income, set up a salary on paye, and let the wealth build up in the business.

2. They probably can make 2k in a week, but the rest of the month they are knackered and can't keep up with the pace, so it's more like 2 grand week one, 1 grand week two, 700 quid week three, and 400 quid week 4. 

3. My average price down here in Surrey is £38 for a 3 bed semi, I could argue that if I did 15 houses a day 5 days a week I could make 2800 quid a week,  but what people forget when they come up with claims like this is that although it's POSSIBLE to earn that, by doing a numbers game, in order to achieve that you need a hell of a lot of customers, at a very high price,  consistently cleaned every day week after week, month after month year after year, not only would you be knackered, you'd be working really hard to line the pockets of the taxman, as a self employed person, you'd give that up pretty quickly when you got to find a 35 grand payment on account to make for the next year. 

It just doesn't make sense.

Now I'm not saying you can't earn these numbers, anything is possible with anything if you work hard enough, but to do it as a sole trader, your either very stupid, or plain pork pie tellin.

Imo if your starting to exceed 3.5 grand a month, you need to consider going Ltd in order to reduce the tax you pay out, and start to build wealth in the business.

??

£38 for a 3 bed semi ?   lmaooooooooooo omggg try living up  North East - prices vary from £7-12 for a 3 bed

 

[ched999uk]

Years ago I had  mk2 cortina 1600 E ,mk2  lotus cortina , escort mk1 RS 2000 ,mk1 Mexico , mk2 Mexico, 1800 BDA , 2x mk2 RS2000 , I dred to think what they would be worth now , all were immaculate as I was a sprayer panel beater at the time .????

Probably looking at £250,000 for the lot!!!!!!!!!!! ?

 

[cleaniac]

£38 for a 3 bed semi ?   lmaooooooooooo omggg try living up  North East - prices vary from £7-12 for a 3 bed

Yes, but for example in Guildford your looking at anywhere between £1500 and £2000 per month to rent that 3 bed semi. 

Buying that 3 bed semi? You won't get much change from £600,000. 

So....really £38 is quite competitive. 

 

[harunh]

Yes, but for example in Guildford your looking at anywhere between £1500 and £2000 per month to rent that 3 bed semi. 

Buying that 3 bed semi? You won't get much change from £600,000. 

So....really £38 is quite competitive. 

Yeah true...... to rent a 3bed semi in the North east u are looking at £500-£700 LOL

 

[Part Timer]

Yes, but for example in Guildford your looking at anywhere between £1500 and £2000 per month to rent that 3 bed semi. 

Buying that 3 bed semi? You won't get much change from £600,000. 

So....really £38 is quite competitive. 

At those numbers If you did 10 a day, 5 days a week, 48 weeks of the year you'd be over the VAT registration threshold ?

There's people up here with an employee knocking their plugs in and not getting near that.

 

[cleaniac]

At those numbers If you did 10 a day, 5 days a week, 48 weeks of the year you'd be over the VAT registration threshold ?

There's people up here with an employee knocking their plugs in and not getting near that.

Many window cleaning businesses here in Surrey do. 

I don't, I earn what I need to earn, and run my business in the most efficient way possible. 

 

[Pjj]

Many window cleaning businesses here in Surrey do. 

I don't, I earn what I need to earn, and run my business in the most efficient way possible. 

So have you given up with the idear of going VAT registered and having another van and employee?? 

 

[cleaniac]

Yeah true...... to rent a 3bed semi in the North east u are looking at £500-£700 LOL

What you need to do is set up business down here in Surrey, and live in the north.. ?

 

[Markyboy 50]

Years ago I had  mk2 cortina 1600 E ,mk2  lotus cortina , escort mk1 RS 2000 ,mk1 Mexico , mk2 Mexico, 1800 BDA , 2x mk2 RS2000 , I dred to think what they would be worth now , all were immaculate as I was a sprayer panel beater at the time .????

Nice cars mate. I had a mark 3 2000e cortina. Mark 5 2.3 ghia cortina. Xr2. Xr4x4. 2 of those. 2 x2.8 Granada’s. Focus 170 st. And the 15 year old 225 st that I’ve had 11 years. And others in between that I can’t remember 

 

[cleaniac]

So have you given up with the idear of going VAT registered and having another van and employee?? 

Yes, I'm keeping things simple.

Keeping just under VAT threshold. 

Me and the wife taking a small salary to cover our living costs etc, we even pay a bit of tax on it through PAYE.

Surplus money is being left to build up in the business until I retire, upon which either my son will carry on running the business, or I will liquidate surplus  assets and company on retirement.

 

[ched999uk]

Me and the wife taking a small salary to cover our living costs etc, we even pay a bit of tax on it through PAYE.

Surplus money is being left to build up in the business until I retire, upon which either my son will carry on running the business, or I will liquidate surplus  assets and company on retirement.

Be careful as at moment if you take money as dividend as basic rate tax payer the rate is only 7.5% but no one knows if Gov are going to crack down on that in the budget!!! There was talk of tax reforms on ltd company directors paying themselves (quite legally) low wages then dividends as it was depriving gov of national insurance etc... So might be worth pulling out as much as you can with the 7.5% system if you can?

I'm not an accountant by the way so there may be other issues but watch out for budget!!!

 

[cleaniac]

Be careful as at moment if you take money as dividend as basic rate tax payer the rate is only 7.5% but no one knows if Gov are going to crack down on that in the budget!!! There was talk of tax reforms on ltd company directors paying themselves (quite legally) low wages then dividends as it was depriving gov of national insurance etc... So might be worth pulling out as much as you can with the 7.5% system if you can?

I don't take dividends.

I take salary, and pay tax on it and so does the wife.

Its simpler.

 

[Crystalalan]

Nice cars mate. I had a mark 3 2000e cortina. Mark 5 2.3 ghia cortina. Xr2. Xr4x4. 2 of those. 2 x2.8 Granada’s. Focus 170 st. And the 15 year old 225 st that I’ve had 11 years. And others in between that I can’t remember 

So you are not a big ford fan then?

 

[cleaniac]

So you are not a big ford fan then?

My 1st car was an XR2

 

[Pjj]

Nice cars mate. I had a mark 3 2000e cortina. Mark 5 2.3 ghia cortina. Xr2. Xr4x4. 2 of those. 2 x2.8 Granada’s. Focus 170 st. And the 15 year old 225 st that I’ve had 11 years. And others in between that I can’t remember 

Lol you saying that has reminded me I had a Sierra 4x4 and a Granada ghia 2:8 that was a lovely car m then I moved on to Opel senator 3:0 and Vauxhall’s Royal 3:0 then the cavalier sri130 , Astra Sri , then saw the light and had BMW M5 ,M3 , 530 d touring oh and a few volvos in between then Audi  SQ5 , , surprising  how many cars we get through over the years ???

 

[ched999uk]

I don't take dividends.

I take salary, and pay tax on it and so does the wife.

Its simpler.

You said 'Surplus money is being left to build up in the business until I retire' So how do you intend to get the money out? Getting it out has tax implications which might be getting worse after budget!!!

 

[Crystalalan]

Lol you saying that has reminded me I had a Sierra 4x4 and a Granada ghia 2:8 that was a lovely car m then I moved on to Opel senator 3:0 and Vauxhall’s Royal 3:0 then the cavalier sri130 , Astra Sri , then saw the light and had BMW M5 ,M3 , 530 d touring oh and a few volvos in between then Audi  SQ5 , , surprising  how many cars we get through over the years ???

What made you give up the panel beating. Sounds like you are a real car nut?

 

[Part Timer]

You said 'Surplus money is being left to build up in the business until I retire' So how do you intend to get the money out? Getting it out has tax implications which might be getting worse after budget!!!

I believe when you cease trading with a Ltd Company you're allowed £35k tax free, not sure if that's total or per shareholder. The best way, probably, would be stick it in a pension fund, tax free and when you get to 50 get a 25% tax free lump.

Check all of the above with an Accountant as rules might of changed.

 

[Pjj]

What made you give up the panel beating. Sounds like you are a real car nut?

I worked for wincanton garages straight from school over the years the garage I worked at was sold off to a private owner who was a skinflint and asset stripped the place I asked for redundancy and got it , I liked the job but money was very poor , Ime a time served apprentice and national craft certified person , got offered a job at Rolls Royce in crew I think it was but wife didn’t want to move up there , neither did I , so left the motor trade , bestvthjng I ever did , although I did enjoy the spraying , used to do a lot of custom paintwork , like flip flop and candy apple on custom cars and bikes to show level . Lots of restoration on e type jags , jenson interceptor ff and the like .