Leaving tax money in your company account...

[BA to the Stars]

I reckon once you're flagged you're probably on a list like. But they've told me twice that it's because of high expenses.

And both times I've been squeaky clean by the way...I'm not the most organised person i the world, but everything gets done eventually, and properly.
You're not deemed a "bad person" if you have to pay the odd late payment fine. If anything, it's extra tax for doing nothing - they like that.

Sal, how can they state what high expenses are? If you work away & have to spend 5 nights in a hotel, that could easily rack up £250+ per week before subsistence and travel.

Possibly they just have a cut off figure e.g. if gross profit is less than 50% of turnover, then they decide to have a further look.

[tay]

I reckon once you're flagged you're probably on a list like. But they've told me twice that it's because of high expenses.

Interesting and good to know. Glad you got through them, but as you say, you dont survive an investigation by luck... you survive it by having done the right thing. Good on ya.

[tay]

I thought the same for a long time. No longer. I believe the attitude of "life is a journey and not a destination" does hold true. When is later?

November!!!

HTH

[SallyAnne]

Yes! £37k per year is a huge amount of cash. If you are overspending and having to dip into money that is not legally yours then this is called "living beyond your means".

I dont really live beyond my means, as I always have enough money coming in to pay all bills. I reckon I live right up to my means...as tight as can be. Probably for the same reason I used to always spend just up to my over draft limit, and when I was a permie, was always right up to my flexi limit. I'm a "live for the moment" person.

I do want to change slightly though - and this thread has inspired me a bit to be a bit more organised.


"I try to cheer myself up by imagining what may happen if disaster struck."

[SallyAnne]

Sal, how can they state what high expenses are? If you work away & have to spend 5 nights in a hotel, that could easily rack up £250+ per week before subsistence and travel.

Possibly they just have a cut off figure e.g. if gross profit is less than 50% of turnover, then they decide to have a further look.

I remember them pointing out that my wages were like £15k or something, yet my expenses were something like £20k. There'll be a % somewhere which trigggers an investigation.

Which is fair enough really - it does look odd I guess.

[Epiphone]

Every invoice has 20% removed and put in a reserve account together with the VAT. Then once a month I put the income tax, NIC and ENIC in there too. Pay the VAT when the accountant tells me to and every so often I remind Hector they have to give me some details to be able to pay the PAYE to them. But he keeps ignoring me.

[Xenophon]

I thought the same for a long time. No longer. I believe the attitude of "life is a journey and not a destination" does hold true. When is later? Personally I declare loads more than £37k a year as life is for living!

Party on, OS!

[ratewhore]

Probably for the same reason I used to always spend just up to my over draft limit, and when I was a permie, was always right up to my flexi limit. I'm a "live for the moment" person.

That's fine when the money is your own Sal, but any money in the business is not yours until you either withdraw it as a salary or dividend.

Just hold back the required amount per month and take the rest how you want. Then of course, stick the right %age of your drawings in a savings account to pay your personal tax too!!

Piece of piss!!

[SallyAnne]

That's fine when the money is your own Sal, but any money in the business is not yours until you either withdraw it as a salary or dividend.

Just hold back the required amount per month and take the rest how you want. Then of course, stick the right %age of your drawings in a savings account to pay your personal tax too!!

Piece of piss!!

Hmmmm being honest, I think of the money as being mine. Doesn't anyone else? It is mine!!! It is, it is, it is

I mean - as a permie, if I got paid £3k a month, I'd think of all that as mine too...even though a grand has to go on the mortgage, £500 to cards, etc etc.

I roughly know what has to be paid...and I roughly spend what's left Just not always in that order.

However.....after the next 2 months (which will be very very tight cause of all my bills due) I am realy really going to try and do the % thing.
You lot are wise like owls, and I must learn from yous.

[ferret]

I thought the same for a long time. No longer. I believe the attitude of "life is a journey and not a destination" does hold true. When is later? Personally I declare loads more than £37k a year as life is for living!

Yeah, I know what you mean and was always rubbish at stashing cash away. Now though it is me, Mrs Ferret, baby ferret 1 and baby 2 due in June so while I would love to blow all my cash on new toys, clothes, take-outs every night etc I just cannot as if my journey reaches its destination tomorrow I want to leave enough behind for my loved ones to carry on with their journey without being totally skint and struggling to survive.