general idea of end of year taxes

[jamesbrown]

Given your reference to dividends (assume outside IR35) and a day rate of £325, it's very difficult to arrive at a figure close to £28k, even assuming you work most weeks and this includes both company and personal taxes where all distributable profit is divvied out. It's kinda odd that you'd ask this question of us before asking your accountant though. Get them to break down the estimate for you, which may include a healthy margin for error (or they're projecting £14k as your year end liability, but that wouldn't make a lot of sense either).

[Alan @ BroomeAffinity]

Of course my example does not show him withdrawing divvies.

I knew that. Which is why I helped you out. :-)

[Alan @ BroomeAffinity]

It's kinda odd that you'd ask this question of us before asking your accountant though).

Possibly a good example of the failings of an online accountant?

[jamesbrown]

Possibly a good example of the failings of an online accountant?

Possibly, I have no experience of such a practice. However, they presumably have qualified accountants available on the phone (if not a personal accountant). Otherwise, it's just ~ Free Agent (which might do a better job, incidentally ).

[Maslins]

Possibly, I have no experience of such a practice. However, they presumably have qualified accountants available on the phone (if not a personal accountant). Otherwise, it's just ~ Free Agent (which might do a better job, incidentally ).

Wonder what people have in their mind when they say "an online accountant". It's not a different breed of part cyborgs hooked up to the web...typically just a firm who tend to use email and cloud software as a preference over regular meetings/phone calls and posting stuff.

Yeah, FreeAgent should be able to help with most of the OP...but it's software, so data out is only as good as data in.

Wonder if the OP will come back to this thread...the above suggestions look plausible to me, though wondered if perhaps it was inside IR35 rather than a VAT issue? Who knows...

[jamesbrown]

Wonder what people have in their mind when they say "an online accountant". It's not a different breed of part cyborgs hooked up to the web...typically just a firm who tend to use email and cloud software as a preference over regular meetings/phone calls and posting stuff.

Yeah, FreeAgent should be able to help with most of the OP...but it's software, so data out is only as good as data in.

Wonder if the OP will come back to this thread...the above suggestions look plausible to me, though wondered if perhaps it was inside IR35 rather than a VAT issue? Who knows...

I wasn't suggesting the OP needs Free Agent, I was just making a snide remark

Anyway, it could be VAT or it could be a deemed payment, but neither make an awful lot of sense to me (VAT is paid quarterly and a deemed payment is presumably paid monthly in the context of RTI?). Perhaps the OP has been feeding their online cyborg the wrong info.

[ehhwhat]

cheers for all the info guys, been helpful.

Some more details if poeple want to know

I withdraw as a dividend anything left in my account above the amount they ask me to leave in there for future taxes, i also take out expenses, mileage and pension and a weekly salary of £190.

I am outside IR35

Typical number of days invoiced will be 19-20, ive had quite a few holidays, one month was 15days another 24days etc

I am on the flat rate VAT scheme as an IT company so i dont know if this will make any difference.

When i say online accountants i just mean that i submit all my expenses through their website and most contact is done this way as well, im sure they are all qualified.

I will also contact my accountant today and ask for a breakdown and to check that nothing is out of the ordinary.