self -empl nat ins contributions
Discussion
Sorry to drag this up. Just done my tax return online and was surprised to see 8% of my profit disappear in class 4 NI contributions. I'm already paying the £28 quaterly contributions. Have the rules changed? I'm now no better off than PAYE with none of the security of employment. :miffed:
I don't have an accountant. I have ten fingers of my own.
I don't think an accountant would pay for himself with the money I earn. Maybe if I had a greater income they might be more useful. I've heard of all sorts of fancy avoidance schemes, people taking dividends and so on.
I'm just a bit hacked off with a bigger tax bill than I expected. It certainly isn't worth being self employed for financial reasons. Oh well, at least I don't have a boss.
I don't think an accountant would pay for himself with the money I earn. Maybe if I had a greater income they might be more useful. I've heard of all sorts of fancy avoidance schemes, people taking dividends and so on.
I'm just a bit hacked off with a bigger tax bill than I expected. It certainly isn't worth being self employed for financial reasons. Oh well, at least I don't have a boss.
And have you taken into account the Payments on Account system?
This effecively will add another 50% of your 2007/08 tax bill onto what you need to pay in January.
Also, being Self Employed, have you availed of all the Capital Allowance and allowable business expenses you might be entitled to?
Finally, dividends only apply to limited companioes, not self-employed individuals.
Accountants aren't hired to help a businessman count. They are hired to help a businessman wade his way through the sometimes complex tax (and other) legislation and to ensure that allowable tax reliefs are not missed - as well as perhaps assist with non-tax business matters too.
This effecively will add another 50% of your 2007/08 tax bill onto what you need to pay in January.
Also, being Self Employed, have you availed of all the Capital Allowance and allowable business expenses you might be entitled to?
Finally, dividends only apply to limited companioes, not self-employed individuals.
Accountants aren't hired to help a businessman count. They are hired to help a businessman wade his way through the sometimes complex tax (and other) legislation and to ensure that allowable tax reliefs are not missed - as well as perhaps assist with non-tax business matters too.
Eric Mc said:
And have you taken into account the Payments on Account system?
This effecively will add another 50% of your 2007/08 tax bill onto what you need to pay in January.
Also, being Self Employed, have you availed of all the Capital Allowance and allowable business expenses you might be entitled to?
Finally, dividends only apply to limited companioes, not self-employed individuals.
Accountants aren't hired to help a businessman count. They are hired to help a businessman wade his way through the sometimes complex tax (and other) legislation and to ensure that allowable tax reliefs are not missed - as well as perhaps assist with non-tax business matters too.
I pay via CIS so my complaint was that I thought the taxman owed me more than he did. Still got a nice rebate though. This effecively will add another 50% of your 2007/08 tax bill onto what you need to pay in January.
Also, being Self Employed, have you availed of all the Capital Allowance and allowable business expenses you might be entitled to?
Finally, dividends only apply to limited companioes, not self-employed individuals.
Accountants aren't hired to help a businessman count. They are hired to help a businessman wade his way through the sometimes complex tax (and other) legislation and to ensure that allowable tax reliefs are not missed - as well as perhaps assist with non-tax business matters too.
I'm not having a dig at accountants. I know they are knowledgeable and can save people money. I've used an accountant in the past but at the moment I don't think the cost would outweigh any savings. I'm fairly organised and like to be independant. When do you think the authorities will make it mandatory to use an accountant to file a tax return?
Btw I've heard of self employed people starting companies so that they can pay themselves via dividends at a lower tax rate. This might have changed with the increase in tax on dividends though.
supersingle
A couple of things, as EricMc says you don't get dividends as self employed, but you can from a limited company
Historically I have found that accontants have saved me money in the long term and I don't begrudge paying them their fees. This year my accountant made savings greater than his bill, so as far as I'm concerned thats money well spent. I too have 'been around the block' a bit having been self employed, had several limited companies, have a wife who is self employed, but will always make use of the correct available professional advice.
A good accountant for simple self employed accounts, especially where the [person is very organised will only charge a few hundred pounds to make up the acconts/tax return, I'd be really surprised if you didn't save at least that amount.
davidy
A couple of things, as EricMc says you don't get dividends as self employed, but you can from a limited company
Historically I have found that accontants have saved me money in the long term and I don't begrudge paying them their fees. This year my accountant made savings greater than his bill, so as far as I'm concerned thats money well spent. I too have 'been around the block' a bit having been self employed, had several limited companies, have a wife who is self employed, but will always make use of the correct available professional advice.
A good accountant for simple self employed accounts, especially where the [person is very organised will only charge a few hundred pounds to make up the acconts/tax return, I'd be really surprised if you didn't save at least that amount.
davidy
No it hasn't. It has just changed. For some it might turn out higher - for many others, it might turn out to be less.
Before 5 April 2008, Capital Gains Tax was charged at the individuals highest rate of Income Tax - usually 40%. However, assets held over certain periods of time were eligible for either Indexation Relief or Taper Relief or even both.
Since 6 April 2008, Capital Gains Tax is fixed at 18% for non-business assets and 10% for Business Assets and the old Indexation and Taper Reliefs have been abolished.
Before 5 April 2008, Capital Gains Tax was charged at the individuals highest rate of Income Tax - usually 40%. However, assets held over certain periods of time were eligible for either Indexation Relief or Taper Relief or even both.
Since 6 April 2008, Capital Gains Tax is fixed at 18% for non-business assets and 10% for Business Assets and the old Indexation and Taper Reliefs have been abolished.
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