Reply to: Quick check

[gareth01422]

£2.65 is weekly class 2 NI for the self employed, this doesn't apply to an employed company director.

As others have said, get some advice! I suspect a half decent accountant will save their fee in keeping you out of the mire

Think Im already in the mire, but yes, I am going to be sorting an accountant out as soon as possible.

[Jessica@WhiteFieldTax]

£2.65 is weekly class 2 NI for the self employed, this doesn't apply to an employed company director.

As others have said, get some advice! I suspect a half decent accountant will save their fee in keeping you out of the mire

[Kugel]

Also where do you get money to pay dividends?

2010 - 2011. Invoiced - (wages + expenses) = £3,358.10. Total dividend payments = £5,374.10.
2011 - 2012. Invoiced - (wages + expenses) = £13,855.66. Total dividend payments = £18,767.66.

[gareth01422]

If you want to do it yourself, get DIY Accounting and HMRC Basic PAYE Tools.

Thank you, will have a look at the software, gareth

[Kugel]

Thanks for the advice guys

Will send a few emails out to accountants and see If I can get some help.

If you want to do it yourself, get DIY Accounting and HMRC Basic PAYE Tools.

[gareth01422]

Thanks for the advice guys

Will send a few emails out to accountants and see If I can get some help.

[LisaContractorUmbrella]

Any suggestions?

There are a number who post on here who are specialist accountants - actually there is one who has been voted best contractor accountant for umpty ump years running

[malvolio]

Any suggestions?

Several. But I suggest you start with the sticky post at the top of this board, the one about "Recommended Accountants"...

[gareth01422]

I would also suggest that you appoint an accountant that is used to dealing with contractors and understands the legislation surrounding the industry

Any suggestions?

[LisaContractorUmbrella]

Ive got the message mate, going to book an appointment this week with an accountant.

I would also suggest that you appoint an accountant that is used to dealing with contractors and understands the legislation surrounding the industry

[gareth01422]

Gareth - if this is the same gig you were posting about in 2010, then you can't claim mileage - see the 2 year rule.

You cannot claim from the point that you know you will be there for > 2 years.

In case you've not got the message - you NEED an accountant!

Ive got the message mate, going to book an appointment this week with an accountant.

[mudskipper]

Gareth - if this is the same gig you were posting about in 2010, then you can't claim mileage - see the 2 year rule.

You cannot claim from the point that you know you will be there for > 2 years.

In case you've not got the message - you NEED an accountant!

[mudskipper]

Hi

Thanks for the reply

Ive looked into the National Insurance and found 2.65/week from the site below (link)
https://www.gov.uk/national-insuranc...urance-you-pay

As for claiming food expenses, I couldn't claim anything because I only worked on this contract while having the LTD company. I say this because of this quote “if a contractor creates a limited company specifically for the purpose of working on a particular contract at a single location, with no other contracts before or after, they’d be hard pressed to convince HMRC that their expenses claims are legitimate.” Taken from this page which is a ver interesting read.
Contractor Doctor: Can I claim for regular lunch and food expenses?

Gareth

CHeck this link:

Guide to National Insurance Contributions (NICs)

Unlike sole traders, for tax purposes, if you are a director of a limited company, you are an ‘employee’ of the company. You are therefore liable to pay Class 1 NIC’s on your earnings. The limited company is also liable to pay Class 1 NIC’s as your ‘employer’.

Employees (Primary Class 1 Contribution) pay 12% on earnings between £146 and £817 per week, and 2% above £817 per week [2012/13].

Employers (Secondary Class 1 Contribution) pay 13.8% on earnings above £144 per week [2012/13].

These NIC deductions should be paid to HMRC by the 19th of each month, unless payments are low, where you may be able to pay quarterly.

So for a salary of £200 a week I make that about £14.64 a week.

And AFAIK you're supposed to pay it as you go (hence PAYE) so I think you're already in trouble if you haven't been doing that. Hopefully an accountant can sort you out.

If you've been taking everything you've invoiced as a mixture of salary/dividend without setting aside an appropriate amount for your tax liabilities, that also makes your divvies invalid - you can only take divvies from profit - i.e. after tax liabilities. Please get help to sort this out or you could get in a whole heap of trouble.

[gareth01422]

Did you know you can probably get money for nothing (or very little) by being VAT registered and on the FRS?

How much salary are you paying yourself? If it's none then you are probably paying a lot of tax that you could avoid.

If you have taken dividends then do you have the proper meeting minutes and vouchers done?



If you can't claim for food then what makes you think you can claim for mileage?

Honestly, you need to get an accountant to review all this immediately and get it right. Go and read the Accountant Recommendations thread and speak to a couple of them.

I know accountants cost money but it really is a false economy to not have one Get professional advice or you will end up paying a lot more tax than you have to not to mention fines and penalties for messing it up.

Thank you for the advice which I am going to do.

[Wanderer]

I'm only a one man band contractor and not VAT registered so its only a small excell spread sheet.

Did you know you can probably get money for nothing (or very little) by being VAT registered and on the FRS?

How much salary are you paying yourself? If it's none then you are probably paying a lot of tax that you could avoid.

If you have taken dividends then do you have the proper meeting minutes and vouchers done?

As for claiming food expenses, I couldn't claim anything

If you can't claim for food then what makes you think you can claim for mileage?

Honestly, you need to get an accountant to review all this immediately and get it right. Go and read the Accountant Recommendations thread and speak to a couple of them.

I know accountants cost money but it really is a false economy to not have one Get professional advice or you will end up paying a lot more tax than you have to not to mention fines and penalties for messing it up.