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let down by accountant - personal tax bill I can't pay

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    #31
    I did a lot of reading before jumping into contracting so knew about the 40% when breaking the div / salary threshold but I was surprised at the pay-forward on expceted Tax until picking it up on a thread then running off to do some research.

    I don't think until you've 2 or more years full accounts under your belt that you really start to understand the in's and out's.

    You could do as suggested and keep all monies due in a seperate account and still fall fowl of this 50% pay-forward.

    My first set of annual accounts I lightly skimmed, checked a few totals and thought looks OK. Second year I was all over them and had multiple re-dos - the values changed by less than £100 in the end but at least I was sure they were correct.

    But if the OP had held a warchest of any sort then it should have absorbed such shortcomings. So rather the motto should be don't piss everything against the wall as the unexpected will happen at some point or another.
    Anti-bedwetting advice

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      #32
      Read the rest of the forum I linked to. It really is quite scary.
      Down with racism. Long live miscegenation!

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        #33
        Like the following?

        Hi not sure what to do.

        My account emailed asking he needs my payslips/invoices/bank statements for year ending March 2012 as he accounts are due for filing by 31.12.12.

        I do Locum work and I am not sure if I can pay my ltd company tax of when I file my accounts.

        I have been paying myself a minimum salary but I think my balance on my bank statement end of March 2012 is around £16k! Is that balance profit? Does that mean I wil need to pay tax on that?

        How do HMRC know how much you earn in a tax year or do they go by what you file? I think I've earnt around £60k but i have been spending the money also for social e.g. Eating out, shopping etc I have been paying the PAYE tax though.

        My accountant has not really explained how to manage a ltd company and I think I'll be in trouble if I file my accounts. I know it's wrong but can I wind down the company or close it down before filing?

        Does anyone have any advice?
        Anti-bedwetting advice

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          #34
          Originally posted by northernladuk View Post
          Is that to rent and lease your car??
          LOL! Sorry, I need to spread the rep first!
          I couldn't give two fornicators! Yes, really!

          Comment


            #35
            Originally posted by Notascooby View Post
            I did a lot of reading before jumping into contracting so knew about the 40% when breaking the div / salary threshold but I was surprised at the pay-forward on expceted Tax until picking it up on a thread then running off to do some research.

            I don't think until you've 2 or more years full accounts under your belt that you really start to understand the in's and out's.
            Exactly. Think people are getting a bit high and mighty on here. In reality how many people got surprised in their first year about tax on Dividends and the fact you then pay the next years on top? I did and most contractors I know did the same.

            Running a business is a learning experience in itself and some people on here act as though they knew everything from day one, which I highly doubt.

            Although if the OP's accountant was any good they would have chased to get the Personal tax return done quite a few months before the January deadline so the OP would have had a few months warning of the expected tax bill.

            Comment


              #36
              Originally posted by psychocandy View Post
              Must admit it never ceases to amaze me stories like this. I frequent a certain business forum to deal with the wifes business and every day you get stories like this from small business owners.... Unbelievable.
              I don't find it surprising, certainly not amazing or unbelievable. Your typical person starts a small business because they have an idea, and it's not like when you start a Ltd you are forced to go on a course or sent a 1-2-3-lets-run-a-business guide.

              The other thing to remember is that running a traditional small business is normally very hard work, and takes up a lot of time. So even with good intentions, it's very easy to see why people simply put off the stuff that doesn't have to be done RIGHT NOW and suddenly find themselves screwed.

              None of this is an excuse, but it seems totally obvious to me that so many entrepreneurs never get round to understanding the business side of a business when they are never forced to learn.

              Maybe you should be forced to take a simple test in order to run a Ltd? Like a drivers' theory test, with questions like:
              - How often does your company have to file a tax return
              - How often do you have to file a VAT return
              - etc
              Originally posted by MaryPoppins
              I'd still not breastfeed a nazi
              Originally posted by vetran
              Urine is quite nourishing

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                #37
                Originally posted by NotAllThere View Post
                Read the rest of the forum I linked to. It really is quite scary.
                I found 3 IT contractors on the first page that have spent their CT/VAT money and I only got halfway down. Doesn't paint us in a very good light. They even have their own NLUK there...

                Owe VAT and Corporation Tax - sole director - am I liable? - UK Business Forums

                There have been many similar postings and threads. Look back through previous postings.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #38
                  Originally posted by JoJoGabor View Post
                  Exactly. Think people are getting a bit high and mighty on here. In reality how many people got surprised in their first year about tax on Dividends and the fact you then pay the next years on top? I did and most contractors I know did the same.
                  Say what!? Sorry but there's absolutely no excuse for this. You have (or should have) an accountant. Despite what some people here may claim, the accountant will answer any question a newbie contractor \ new ltd business may have. It's their job.

                  I suspect the real issue is too many people running a business for the first time hear an ltd co 'reduces your tax bill' and dont listen to the rest about what you do need to be aware of.

                  Running a business is a learning experience in itself and some people on here act as though they knew everything from day one, which I highly doubt.
                  No, I didnt. But I came out of my accountant's with some papers and a very simple income and expense spreadsheet to record my figures on. If I had any questions, I picked up the phone to speak to him instead of jumping on a forum first (which again, all too many people seem to do instead of contacting their accountant.

                  Although if the OP's accountant was any good they would have chased to get the Personal tax return done quite a few months before the January deadline so the OP would have had a few months warning of the expected tax bill.
                  Perhaps the accountant did but the OP neglected to do as asked or didnt bother mentioning it in the original post?
                  I couldn't give two fornicators! Yes, really!

                  Comment


                    #39
                    Originally posted by northernladuk View Post
                    I found 3 IT contractors on the first page that have spent their CT/VAT money and I only got halfway down. Doesn't paint us in a very good light. They even have their own NLUK there...

                    Owe VAT and Corporation Tax - sole director - am I liable? - UK Business Forums
                    What an eye opener that forum is! People think they can take thousands of pounds out of the company yet dont know they would have to pay tax on it? Or that leaving the company with insufficient monies to pay its bills is not fraudulent?

                    That spongebob seems a real wide boy who's had plenty of experience of dubious tactics.
                    I couldn't give two fornicators! Yes, really!

                    Comment


                      #40
                      Originally posted by northernladuk View Post
                      I found 3 IT contractors on the first page that have spent their CT/VAT money and I only got halfway down. Doesn't paint us in a very good light. They even have their own NLUK there...

                      Owe VAT and Corporation Tax - sole director - am I liable? - UK Business Forums
                      You're tulipting me. The advice was to stick two fingers up at HMRC!!! Why dont you offer this advice NLUK?
                      What happens in General, stays in General.
                      You know what they say about assumptions!

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