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Help.... lost...tax....aaaagh contractor/permanent

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    Help.... lost...tax....aaaagh contractor/permanent

    Hi,

    I have paid tax and ni on job that i was made redundant from in this tax year, i am starting to do some contractor work in the same tax year. i am reading that i will pay 2 lots of ni one as employer and one as employee amounting to approx 25% plus my tax which seems a lot and a little unfair, my problem is im unsure how much money i can use from contractor earning to ensure there is enough left in the account for the tax man. i would appreciate a conversation with someone who could shine some light on my situation.

    Bonus question.... can i just withdraw as dividends (ensuring i leave 20% for hmrc) seeing i have already paid NI this year through my full time job i was made redundant from?

    Thanks

    #2
    you need an accountant

    Comment


      #3
      Originally posted by pr1 View Post
      you need an accountant
      or join a proper legal umbrella and get them to handle the payments for you....
      merely at clientco for the entertainment

      Comment


        #4
        You'll only need to pay NI on salary - so if you've already paid enough this year to count as a qualifying year, then you don't need to pay salary at all (technically you never need to pay salary, but that's a different discussion).

        You'll need to account for VAT (if VAT registered) and corporation tax. So knock the VAT off the invoices because that's not your money anyway. Then knock off the valid business expenses from the turnover. Then knock off 20% for corporation tax.

        Or get an accountant who will make sure that I'm right and you're on the correct path. Which is much better advice than the rest of my post.
        Best Forum Advisor 2014
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        Comment


          #5
          Go brolly, give them your P45 from the last job and let them work out what is what and you pay them for the privilege.
          Originally posted by Stevie Wonder Boy
          I can't see any way to do it can you please advise?

          I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

          Comment


            #6
            Originally posted by SimonMac View Post
            Go brolly, give them your P45 from the last job and let them work out what is what and you pay them for the privilege.
            And give them control of your fees... but still better than screwing up your taxes.

            btw - why do you think it's unfair? When you were employed NI was deducted from your salary, and your employer paid their share. Now you employ yourself through your own ltd company - why should it be any different?
            Down with racism. Long live miscegenation!

            Comment


              #7
              Go brolly until the end of the tax year and then form your own company.
              The greatest trick the devil ever pulled was convincing the world that he didn't exist

              Comment


                #8
                Ring a few of the recommended accountants on here and have a chat with them about your circumstances. They will be happy to outline what you need to do without commitment to signing up with them. Choose one you are happy with.

                If you dont get it right you could end up facing a sudden, and rather large, tax bill.
                "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

                Comment


                  #9
                  Originally posted by aafps View Post
                  Hi,

                  I have paid tax and ni on job that i was made redundant from in this tax year, i am starting to do some contractor work in the same tax year. i am reading that i will pay 2 lots of ni one as employer and one as employee amounting to approx 25% plus my tax which seems a lot and a little unfair, my problem is im unsure how much money i can use from contractor earning to ensure there is enough left in the account for the tax man. i would appreciate a conversation with someone who could shine some light on my situation.

                  Bonus question.... can i just withdraw as dividends (ensuring i leave 20% for hmrc) seeing i have already paid NI this year through my full time job i was made redundant from?

                  Thanks
                  Where is VAT in all this? You have considered VAT yes?
                  You know you can only pull dividends from profit?

                  Umbrella is the way for you.
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by aafps View Post
                    Hi,

                    I have paid tax and ni on job that i was made redundant from in this tax year, i am starting to do some contractor work in the same tax year. i am reading that i will pay 2 lots of ni one as employer and one as employee amounting to approx 25% plus my tax which seems a lot and a little unfair, my problem is im unsure how much money i can use from contractor earning to ensure there is enough left in the account for the tax man. i would appreciate a conversation with someone who could shine some light on my situation.

                    Bonus question.... can i just withdraw as dividends (ensuring i leave 20% for hmrc) seeing i have already paid NI this year through my full time job i was made redundant from?

                    Thanks
                    Engage an accountant asap, you can't do this this on your own or ask random strangers on a forum.

                    Get this wrong and Hector (the Tax Inspector) will rip you a new arsehole.

                    Comment

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