Budget\Calculate monthly for PAYE & Corporation Tax (spreadsheet)

[robz8701]

I have been contracting under my Ltd company for 4 years now and only last year I got hit with a massive tax bill for PAYE which was frightening and has now resulted in a change of accountant.

I am not sure why I didn't hit these issues in previous years or what "magic" my previous account did (same company) but it is what it is and you learn from your mistakes.

In discussion with my new accountant and yet again they try to explain accountancy to me which is of zero use! I use my limited company as a vehicle to pay me so I simply want to know how much I can withdraw in dividends, what I should claim as expenses and based on the dividend what I should put aside for PAYE. I want a month by month breakdown and for this to be for the whole year (as respect tax liability is over the financial year). It can't be that hard can it?

I fully appreciate if my contract changes and I earn in excess of 100k in the financial year I have more tax liability (this is what caught me last year; confused why not years before?) for PAYE but surely a spreadsheet for the year can automatically calculate this for me so I know how much I need to have put aside for payments on account for PAYE as well as Corporation Tax. Does anybody have any useful links for such type spreadsheets?

Appreciate the accountant feedback is "only take dividends on what you need to live". What sense is there in that? I basically want as much of my gross pay as possible and what reservations to make for PAYE & corp tax so I don't get stung\hit by anything unexpected.

[stek]

There's a reason why Accountancy exams are so tough, a spreadsheet isn't going to cut it I'm afraid.

[northernladuk]

Appreciate the accountant feedback is "only take dividends on what you need to live". What sense is there in that? I basically want as much of my gross pay as possible and what reservations to make for PAYE & corp tax so I don't get stung\hit by anything unexpected.

The sense in that is to stay under the tax threshold and keep the spare money in the LTD until sometime you are able to withdraw it more tax effectively. I can't believe you find that bit difficult to understand.

Get yourself a Freeagent account. This does it all for you. Lots of pretty text and graphs about available cash, tax/vat liabilities and lots of info on profit and loss. Best couple of quid it sounds like you'll ever spend in your predicament.

[robz8701]

Surely something can be created to estimate PAYE & Corporation tax for the year? Purely as an estimate, if I know the gross invoices I am going to recieve over 12 months then surely the figures can be used to state I owe this x corporation tax and as I enter a dividend amount it calculates PAYE.

I'm shocked if something isn't out there or can manually be created!

[stek]

Surely something can be created to estimate PAYE & Corporation tax for the year? Purely as an estimate, if I know the gross invoices I am going to recieve over 12 months then surely the figures can be used to state I owe this x corporation tax and as I enter a dividend amount it calculates PAYE.

I'm shocked if something isn't out there or can manually be created!

What about treatment of bad debts if any, writing down of capital items and treatment of allowances, depreciation, accruals and prepayments?

[northernladuk]

Surely something can be created to estimate PAYE & Corporation tax for the year? Purely as an estimate, if I know the gross invoices I am going to recieve over 12 months then surely the figures can be used to state I owe this x corporation tax and as I enter a dividend amount it calculates PAYE.

I'm shocked if something isn't out there or can manually be created!

Download the SJD offering. You can get it if you register or something. But still... Get free agent.

[robz8701]

Appreciate the feedback and will look at FreeAgent. I don't believe I run anything complex, I simply use the Limited Company as a vehicle to pay me as I'm an IT Conttractor.

My accountant does all the "bookwork" but I like to plan\budget on a month by month basis. My company recieves gross invoices (inc. VAT), I claim relevant expenses and pay myself a dividend each month. On my part I simply want to ensure a) enough money is left in my business account for Corporation Tax b) what is the maximum dividend I can take each month and once taken how much of that needs to be put aside for PAYE.

The reason asking for a spreadsheet for the whole financial year, split by month is so I can budget, amend figures in the event I don't have a contract or a rate increase\decrease.

Appreciate true accountants may cringe at what I have put but I am not an accountant and don't want to simply give up and be paid via Umbrella. I simply got stung via Ltd company as my accountant did not state\give sufficient advice in regards to PAYE which resulted in me not having enough provisions and a massive Balancing Payment due in December.

Will take a look at FreeAgent, thanks

[Maslins]

As NLUK said, FreeAgent might be the solution you're looking for. Not a spreadsheet, quite a bit more than that.

[TheFaQQer]

My accountant does all the "bookwork" but I like to plan\budget on a month by month basis. My company recieves gross invoices (inc. VAT), I claim relevant expenses and pay myself a dividend each month. On my part I simply want to ensure a) enough money is left in my business account for Corporation Tax b) what is the maximum dividend I can take each month and once taken how much of that needs to be put aside for PAYE.

Knock off the VAT money, since that's not yours anyway.
Then 20% of the contract value for corporation tax.
I'd add an extra few percent aside for anything unexpected that you've messed up.

I simply got stung via Ltd company as my accountant did not state\give sufficient advice in regards to PAYE which resulted in me not having enough provisions and a massive Balancing Payment due in December.

Be aware that if you are going to keep paying tax, you'll need to have enough money handy to make a payment on account to HMRC for the following year's tax as well.

[JRCT]

If you really want to do this in a spreadsheet, you only need to know the thresholds and percentages and you could do it yourself in about 10 minutes.

It's basic maths, math, no maths.