Cost of Living

[whelk]

12 minutes ago, east-stand-nic said:

A good friend of mine lost his business in a very similar way to how it has mentioned before above. The thing is, the tax office go after and target self employed small business as they are easy pickings. They know they don't have the money for a good lawyer or accountant to defend themselves.

But I have very little sympathy for anyone who loses their business or who gets taxed to much while still supporting mass illegal immigration. These buddies of yours coming over on their dingy have to have their hotel bills paid for by some one. You cannot have it both ways. 

No one supports massive illegal migration you fucking moron

[east-stand-nic]

46 minutes ago, whelk said:

No one supports massive illegal migration you fucking moron

Listen up thicko....many on here defend it and say they should be taken on and looked after. Moron. 

[whelk]

1 hour ago, east-stand-nic said:

who gets taxed to much

It’s ‘too’ you semi-literate thick cunt

[Farmer Saint]

49 minutes ago, whelk said:

Indeed, it is the honesty aspect. Friend of mine who ran a limited company used to boast to me how he had worked out to pay less tax by using dividends. Same time bemoaning the state of the services and the country. Although that loophole has been closed now I think. 
 

Yeah, pay up to NI threshold and take the rest in dividends. Tax burdens for dividends now have increased (or the amount you can take tax free certainly has) - and also you need to take into account that they will pay corporation tax on all profits before that.

The tax burden is lower, but you do have the risk, not being paid for holidays or sickness, no pension etc. 

The dicks who try to cheat the system are the ones that spoil it for the rest.

[Farmer Saint]

5 minutes ago, east-stand-nic said:

Listen up thicko....many on here defend it and say they should be taken on and looked after. Moron. 

Who says that? Illegal migrants should be sent back from whence they came. Asylum Seekers should be looked after (however they get here) as long as their asylum claims are valid.

[egg]

2 hours ago, whelk said:

Indeed, it is the honesty aspect. Friend of mine who ran a limited company used to boast to me how he had worked out to pay less tax by using dividends. Same time bemoaning the state of the services and the country. Although that loophole has been closed now I think. 
 

Limited company is different to self employed. I've done both. Self employed is an arse ache and cost me much more in tax than when I was trading through a limited company, and also when earning comparable as an employee. The issue when self employed is paying tax for the year gone, and then on account for the year ahead. There's definitely ways to mitigate tax payments when trading via a company though if you're that way inclined. 

[Colinjb]

1 hour ago, egg said:

Limited company is different to self employed. I've done both. Self employed is an arse ache and cost me much more in tax than when I was trading through a limited company, and also when earning comparable as an employee. The issue when self employed is paying tax for the year gone, and then on account for the year ahead. There's definitely ways to mitigate tax payments when trading via a company though if you're that way inclined. 

I am considering trying to use a PLC for my sideline. How easy/tricky is it to form one and how would operating one impact filling in a tax return?

[egg]

14 minutes ago, Colinjb said:

I am considering trying to use a PLC for my sideline. How easy/tricky is it to form one and how would operating one impact filling in a tax return?

A limited company is a doddle to set up. Once registered with companies house, you can get a limited company bank account and away you go. I particularly like the Tide and have used it with Xero for book keeping and it synced seamlessly with it. For example, if I paid for something with the tide card it worked through to the books automatically. Xero also issued the invoices, did the vat return, and did the bank reconciliation.

My accountant guided me on the blend of salary and dividends. Bear in mind the company will have it's own accounts to do but they were relatively cheap as Xero reconciled them as we went along, and kept things in order. The company has to pay corporation tax on it's profits, and it can pays it's staff (you) how much or little it chooses, and could choose to reward you with pension contributions. All of those would be tax deductable expenses to the company, thus reducing its tax liability. If the company has surplus cash that you don't want to take as a salary or dividend, the company can invest it how it wishes, example , it could use it's surplus cash as a deposit on an investment property or whatever. 

Your company salary and any dividends will be declared in your own tax return, alongside any other income. Not a huge job, and not massively expensive if you get an accountant to do it. 

[Whitey Grandad]

7 hours ago, Farmer Saint said:

I thought it was a capital expenditure issue, not income? Sorry, I just don't get it.

However, your accountant, who interpreted it that way, should have been liable for any loss.

It was about capital allowances and the incorporation of a sole trader. The relevant law states that if assets are transferred at book value then they are allowable but the Revenue claim that no allowances are possible in the first year of trading. Accountants all know about this but until it has been tested in court the Revenue's position holds sway.

There were other vindictive interpretations as well such as reneging on written agreements that were over thirty years old.

Accountants are like solicitors in that they hide behind their terms of engagement. 

[Whitey Grandad]

1 hour ago, Colinjb said:

I am considering trying to use a PLC for my sideline. How easy/tricky is it to form one and how would operating one impact filling in a tax return?

A PLC is more complicated than a basic Limited Company.  Back in my day it meant something like £50,000 of paid up capital plus other requirements on number of directors and filing accounts. 

[Farmer Saint]

12 minutes ago, Whitey Grandad said:

It was about capital allowances and the incorporation of a sole trader. The relevant law states that if assets are transferred at book value then they are allowable but the Revenue claim that no allowances are possible in the first year of trading. Accountants all know about this but until it has been tested in court the Revenue's position holds sway.

There were other vindictive interpretations as well such as reneging on written agreements that were over thirty years old.

Accountants are like solicitors in that they hide behind their terms of engagement. 

Thanks, that's the detail I wanted. 

Yes, seems you got stiffed a bit there, it's a little like the TAAR rule for entrepreneurs relief.

[Farmer Saint]

1 hour ago, Colinjb said:

I am considering trying to use a PLC for my sideline. How easy/tricky is it to form one and how would operating one impact filling in a tax return?

What is the reason for PLC rather than LTD? Limited is so easy, and you can just get your accountant to do it all. What type of business are you running?

Edited 5 hours ago by Farmer Saint

[Colinjb]

29 minutes ago, Farmer Saint said:

What is the reason for PLC rather than LTD? Limited is so easy, and you can just get your accountant to do it all. What type of business are you running?

I'm a teacher and I do tutoring on the side. A colleague does similar and apparently only pays a 20% tax rate rather then the circa 35-40% i'm currently paying for my extra income. As the sole breadwinner for our family, any steps I take to retain as much as possible are worth considering.

Edited 5 hours ago by Colinjb

[egg]

2 hours ago, Farmer Saint said:

What is the reason for PLC rather than LTD? Limited is so easy, and you can just get your accountant to do it all. What type of business are you running?

I think he means Ltd rather than PLC, hence my response. 

[whelk]

10 minutes ago, egg said:

I think he means Ltd rather than PLC, hence my response. 

Yeah a given really as a one man teaching company ain’t becoming a PLC

[Colinjb]

1 hour ago, whelk said:

Yeah a given really as a one man teaching company ain’t becoming a PLC

You will be relieved to know I don't teach business studies.