TAX!!!!

Discussion in 'Managing Your Business' started by GSS Window Cleaning, Sep 13, 2016.

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  1. GSS Window Cleaning

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    How much to you guys put aside for tax a week? I'm saving £50 a week but this seems too cheap? Really stressing me out trying to work out my books
     
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  2. Green Pro Clean Ltd

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    20%

    You get the first 11k tax free then 20% thereafter on average.
     
  3. GSS Window Cleaning

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    I have an account but hes hard to understand at times. basically ill be putting 20k through the books this year then 5 grand expenses. So basically that means I've made 15k profit? So will pay 20% of 4 grand? So £800?? 15k a year profit is nothing I have to pay out 210 a week?? Lol
     
  4. Green Pro Clean Ltd

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    No if you made 20k and have 5k expenses plus your wages 11k thats 16k expenses so yes 20% of 4k = 800.

    If accountant is any good he should get that reduced further.
     
  5. GSS Window Cleaning

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    I don't get what you mean plus my wages 11k? I worked it out 20k gross deduct 5 k expenses leave 15 profit deduct the 11k tax free so leaves 4k to be taxed on so yeah £800 tax bill plus national insurance. So in theory I've made 15k a year??? I may as well quit now as I'll never get a mortgage on 15k lol
     
  6. Green Pro Clean Ltd

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    Your 11k tax free is your 'wages' as it were.

    Dedicate yourself to this and you'll do a hell of a lot more than £20k per year
     
  7. Green Pro Clean Ltd

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    Yes.

    If you're wanting to get loans, mortage etc you will be better off to go LTD and pay yourself as an employee.

    Your accountant will explain why.
     
  8. 1393jason

    1393jason Active Member
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    If your accountant is difficult to understand or unable to explain something simply enough, get rid and bring in someone new.
     
  9. daveyboy

    daveyboy Legend
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    Once you get more customers 15k will be a distant memory
    A defeatist attitude is not good..get hammering on those doors as it is possible with a bit of graft to be over 50k pa taxable

    I put 20% ish of everything ish away and then when tax return comes their is a nice bonus waiting for me
     
  10. adamangler

    adamangler Wakefield Window Warrior
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    That's the only problem you'll come up against with getting a mortgage.

    I also haven't got a mortgage yet and won't get one until I start showing more profit.

    But to show more profit you want to minimise your expenses. That's the stupid system we live in. Those on benefits get there rent paid for and those who choose to graft get to pay a load of tax and skint themselves trying to get on the property ladder.
     
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