A warning to freelancers and the self-employed everywhere - MoneySavingExpert article

[cojak]

Er, don't the deductions on your permie payslip sort of give a slight hint that all the money isn't yours?

Only if they bother reading it.

[Notascooby]

What's this tax stuff? Should I be putting money aside for it?

Don't worry - it's something to do with IR35 (Inland Revenue 35%) if you're not caught then you don't have to pay anything.

Oh if you're on the FRS (Free Random Spending-Money) then you can forget about VAT too

HTH

[FiveTimes]

Or thought that the tax fairy took care of that for them.

Are you saying the tax fairy doesn't exist

[Pondlife]

What's this tax stuff? Should I be putting money aside for it?

I've changed my name by deed poll to pondlife consulting ltd. Therefore any money in the company account is mine.

[Spacecadet]

I've changed my name by deed poll to pondlife consulting ltd. Therefore any money in the company account is mine.

don't you just insist on cheques and then pay them straight into your personnal account?

[Scrag Meister]

In business I run 3 accounts, Current, CT, VAT and that works fine. Also have a personal income tax account that accrues money when I need to.

Even my 18 year old son uses one of my accounts in my name, that he pays money into for running his car, you know insurance, tax, 1 service a year.

Means that he can't touch the money unless I let him. Works well, and has been the case for my older kids in the past.

May not be tax, but means a smoother ride when the expenses arise, same in principle.

[Sysman]

Permies are insulated from tax by PAYE. They see money in the bank every month that's theirs to spend as they like.

I'll bet most of these people didn't give tax any thought at all.

Or thought that the tax fairy took care of that for them.

I gather it happens to a lot of self employed people. The tax man will estimate earnings if books aren't done on time, and they will definitely over estimate. I went through this loop due to an unreliable accountant, and the tax man told me "Tough. Sue him for the tax you have overpaid."

[Sysman]

Er, don't the deductions on your permie payslip sort of give a slight hint that all the money isn't yours?

Sort of. Then they hear other folks who work for themselves down the pub bragging about how little tax they paid and how much their accountant saved them, so think they'll get the same treatment.

[d000hg]

load of crap, both should know that they have to pay tax.

Does it say people don't know they have to pay tax? Or that they fail to account for how much tax and set the money aside.

That does not make it any less dumb.

Wow, headline news: people on average aren't hugely smart. What a revelation. Keep them coming... I can never remember does pizza make you thin or fat?

The gov wouldn't have run that "tax doesn't have to be taxing" campaign if people didn't think it was.

With payments on account and how far in arrears you pay CT, it's easy to get confused. That's why we have accountants. I hope all the overly superior posters in this thread do their own accounts, it's so simple that paying someone would be a waste of money.

[Platypus]

I see this a corporate darwinism....Only the ones who have a bit of common sense survive....I find it laughable that people just jump in head first without doing any research....Bozos.

Who's the bozo? She had and spent £174k of tax money. Now she's bankrupt, the debt vanishes. I doubt she'll be out of work going forward, so life continues as before.

Nice!