Reply to: 1st Year Newbie goes mad with money needs help

[eddiegee]

you can get cheap deals to north cyprus these days.

[max]

as people have suggested looks like I'll have to try and pay a fair bit back into the company account as well as paying my VAT and PAYE asap to the taxman, that leaves CT which people have rightly said is not due for a while ...

I think they are suggesting continue contracting, but from now on leave the money in the account, to cover CT etc. Putting personal money back into the account is just going to complicate things.

Once you are set up with an accountant and have a PAYE/VAT/Div process in place you can start taking money out.

Off course...if your accountant tells you otherwise..follow their instruction.

Have you approached an accountant yet? If not ...why not??!

[Number9]

How do "take" the CT from the account and place it in a high interest account ?
I thought most people with a business account also had a reasonably high paying reserve account for place such funds in.
Surely the money out of the account must be classed as either salary/divis/expenses ? I didn't think you could just take it out ??? But then again I might be wrong

Its a business saving account, then into a business bond

[Jog On]

Where I work, I have contractor here ... who has done EXACTLY what he shouldn't.

Lift money when he liked and kept his company a/c next to nil. Only paid his VAT on time. At the end of the year he called his a/c to tally his books.
To my greatest surprise he did and paid what was due as CT and any other tax.

Nobody checked his statement to confirm the frequency he lifted the money or compared what should be Vs what is the balance of company a/c at point in time !!!

So this makes me think ... am I just too cautious ???

This has me thinking as well - my mother has a Ltd company and she just pays money from her company account into her personal account when she needs it then does her end of year accounts and pays CT. She's never had a peep from Hector and she's a 1 person Ltd company with no employees..

I'm wondering if all this hassle is just a contractor thing.

I've got very complicated finances at the moment as I'm paying out a few grand to get a software product made for me (my Ltd) over elance - I'm also forking out for some business growth training to start building an actual business as opposed to just contracting out of a Ltd.

While all this is going on I simply cannot afford to put away CT but I won't have many problems puttng away what I'm accruing at the moment when my software product is all paid for.

All this investment will put quite a dent in my CT liability anyway - the way I see it I'm building a business and funding the growth from contracting as opposed to getting a business loan - surely Hector won't mind that too much?

Wouldn't suprise me if they did though - unless we've got a Tory Hector by the time my end of year accounts are due

[Mappy]

For Real

I think Mappy is just havin us on! He is bored and has probably thought of a subject everyone would reply to...If its true, then just go the taxman's office and just bend over!

Assik defo not having you on, got my self into a pickle here, and i think I may just be able to worm my way out

as people have suggested looks like I'll have to try and pay a fair bit back into the company account as well as paying my VAT and PAYE asap to the taxman, that leaves CT which people have rightly said is not due for a while ...

[PAG]

Where I work, I have contractor here ... who has done EXACTLY what he shouldn't.

Lift money when he liked and kept his company a/c next to nil. Only paid his VAT on time. At the end of the year he called his a/c to tally his books.
To my greatest surprise he did and paid what was due as CT and any other tax.

Nobody checked his statement to confirm the frequency he lifted the money or compared what should be Vs what is the balance of company a/c at point in time !!!

So this makes me think ... am I just too cautious ???

[AZZIK]

All
Contracting Since Jan ( Limited Company)
Not paid any paye yet
Not paid any VAT yet
Spent a whole chunk of money
(transfers from business account to personal as and when needed)
Not done anything accoutancy wise

Now very worried about end of year
Head well and truly buried in sand

Will a good accountant be able to sort out the mess ?
Will the tax man be pi$$ed that I havent paid him owt yet ?
What about all the cash transfers ! ( hardly schduled dividends?)

What to do ?
HELP!

I think Mappy is just havin us on! He is bored and has probably thought of a subject everyone would reply to...If its true, then just go the taxman's office and just bend over!

[FiveTimes]

Yeah, silly way to do it though, I take roughly CT amount from each invoice and place this into a high interest account.......... it's the taxmans ! the rest is fair game though and I will tally up the rest at end year

How do "take" the CT from the account and place it in a high interest account ?
I thought most people with a business account also had a reasonably high paying reserve account for place such funds in.
Surely the money out of the account must be classed as either salary/divis/expenses ? I didn't think you could just take it out ??? But then again I might be wrong

[Number9]

That the money in the business account isn't all theirs because some is due to the taxman. Because CT isn't due until 9 months after Co year end, if you have spent it you still have time to earn it over the coming months.

Yeah, silly way to do it though, I take roughly CT amount from each invoice and place this into a high interest account.......... it's the taxmans ! the rest is fair game though and I will tally up the rest at end year

[Pondlife]

Meaning ?

That the money in the business account isn't all theirs because some is due to the taxman. Because CT isn't due until 9 months after Co year end, if you have spent it you still have time to earn it over the coming months.

[ElectricChair]

Surely you mean capitalism...

according to Marx religion is what you place highest in life? Its that true then capitalism is a good answer.

[Number9]

That's correct, so there is a chance that the op can claw some of this back but saving more on the remainder of the contract. But it seems like they just see the balance in the account and just spend it regardless of whose it is.

Meaning ?

[FiveTimes]

Soprry if this is a silly question but isn't CT due 9 months after the year end?

That's correct, so there is a chance that the op can claw some of this back but saving more on the remainder of the contract. But it seems like they just see the balance in the account and just spend it regardless of whose it is.

[TheFaQQer]

Soprry if this is a silly question but isn't CT due 9 months after the year end?

Yes.

[Flat Eric]

but which is the best religion?

Surely you mean capitalism...