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

[up4it]

You need to talk to people fast! Talk to a new accountant first and they will advise you. Then you could ring HMRC anonymously to get some more advice. HMRC are usually pretty helpful as long as you are open and honest with them. They can alter your tax code to reclaim unpaid tax but not sure what would happen with such a large amount.

You could always emigrate! ;-)

[NotAllThere]

You are correct Sir. Indeed the OP displays a significant lack of knowledge regarding the financial side of contracting, but all I am saying is, it should be the role of the more experienced forum members to educate, and inform in a helpful manner...

With the greatest possible respect, someone with 27 posts isn't going to really change the robust culture in these forums. You can not dictate how experienced forum members choose to dispense their wisdom.

If you wish to discuss further how the forum should be run, in your opinion - please take it to General.

[Scrag Meister]

You learn as you go along there is no fast and immediate solution to knowing exactly how to run a ltd.

Even litttle things back a couple of years like the fact the credit interest used to have to be included in your VAT return.Not now, but initially I couldn't fathom why I was always a little bit out compared to the accountants figures.

I suppose the main rule is to always be overly cautious, put away the max you may need until you are 100% sure that is is not needed.

Running a company isn't rocket science but there is some common sense required.

[psychocandy]

I don't think I dare venture on to that board. Reading it to the end I have to admit to feeling a flush of rising anger. I don't know if what that Spongebob says is factually correct but giving that type of advice to people just rubs me up the wrong way. That mimisoko is saying they feel better or have calmed down based on it From what I see that mimisoko has a whole host of personal as well as business problems and the last thing they want to do is calm down and relax.

If Spongebob had any morals or a real desire to actually help the OP he should have a) called the poster a moron a few times b) advised him not to bend down to pick soap up c) posted a pic of his avatar behind bars courtesy of SimonMac and d) called him a disgrace and when he is out in 3 years tell us how it went...

NLUK - honestly, step away from that forum. I know what you're like - it'll just wind you up and make you all upset and angry :-)

[sirja]

Relative to general it is very tame. On this thread there has been some very helpful advice. And sometimes a bit of a dig might just act as a forewarning to others.

Quite true sir

[sirja]

I agree in principal with what you are saying, but what the OP has done is not a small oversight, or a misunderstanding on his way to decide to start a Ltd.

He completely did not understand one the MAIN points of how he gets paid when contracting via a Ltd.

How you are personally taxed on the funds you pay yourself (whether salary or dividend) and how your company pays it's taxes are ABSOLUTELY FUNDAMENTAL to the decision to start a Ltd company.

He blames his accountant as well in the OP.

You are correct Sir. Indeed the OP displays a significant lack of knowledge regarding the financial side of contracting, but all I am saying is, it should be the role of the more experienced forum members to educate, and inform in a helpful manner. Regardless of the OP's ignorance, he is in a hole at the moment and needs helpful advice, not to be told how ignorant he is/was or how he should have manged his money better. While he most def needs a complete change in his approach going forward, for now I think he just needs some advice on how to mange the dreadful situation he's in.

[BrilloPad]

I think sometimes a little humility and consideration from the more experienced forum members would be quite welcome.

Relative to general it is very tame. On this thread there has been some very helpful advice. And sometimes a bit of a dig might just act as a forewarning to others.

[jmo21]

I agree with you 100%.I'am on my first set of Accounts and I was quite surprised to to see tax for next years Dividend in my current tax claim. I like to think of myself as a well informed person on things financial but that was quite new to me.Not all of use know everything or are masters of the contracting universe that's why we come here to ask questions. I think sometimes a little humility and consideration from the more experienced forum members would be quite welcome.

I agree in principal with what you are saying, but what the OP has done is not a small oversight, or a misunderstanding on his way to decide to start a Ltd.

He completely did not understand one the MAIN points of how he gets paid when contracting via a Ltd.

How you are personally taxed on the funds you pay yourself (whether salary or dividend) and how your company pays it's taxes are ABSOLUTELY FUNDAMENTAL to the decision to start a Ltd company.

He blames his accountant as well in the OP.

[sirja]

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.

I agree with you 100%.I'am on my first set of Accounts and I was quite surprised to to see tax for next years Dividend in my current tax claim. I like to think of myself as a well informed person on things financial but that was quite new to me.Not all of use know everything or are masters of the contracting universe that's why we come here to ask questions. I think sometimes a little humility and consideration from the more experienced forum members would be quite welcome.

[northernladuk]

Couldn't agree more, but then again there are certain posters on here who hijack every single thread and go on and on about how to use the search, how to navigate to the homepage, how they don't worry about IR35, how their finances are in better order than multi million pound companies etc etc.

The OP has my sympathies and even if he/she got into this mess themselves it still makes for a very worrying time.

I think your examples are a bit skewed. How does telling people to use the search relater to people saying their finances are better than other companies? One is a good bit of advice, the other is just internet bluster.

[Gaz_M]

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.

Couldn't agree more, but then again there are certain posters on here who hijack every single thread and go on and on about how to use the search, how to navigate to the homepage, how they don't worry about IR35, how their finances are in better order than multi million pound companies etc etc.

The OP has my sympathies and even if he/she got into this mess themselves it still makes for a very worrying time.

[BA to the Stars]

WMSS.

What a thread - full of hand wringing and don't worry about the nasty taxman. It's not your problem you are unable to run a company.

Jeez - it must be the home for the hard of thinking

[mudskipper]

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

Bleedin' heck. I think this absolutely reinforces why some should use brollies.

[jmo21]

Suggesting that only those with CCJs are likely to be desperate or easily tempted enough to take a fistful from the open money pots you're talking about is equally stupid.

Suggesting that I suggested that is the stupidest suggestion of all.

[d000hg]

It surely should depend on what you're hired to do. I wouldn't say the fact the rule exists means it is sensible though, the world is full of rules that exist simply because they existed already!