Reply to: Personal Tax Returns

[xoggoth]

'K' tax code.

Tried to do that for my sister (also my fellow director/business partner). Don't worry, just do it online, it doesn't understand K codes thus reducing tax at a stroke.

PS Oh feckin 'ell, pers tax return! Ta for reminder.

[BrilloPad]

Correct on both counts of course. But BrilloPad was being asked to make payments on dividends he has received. Therefore, it's his own personal tax...

it is own personal tax - but on dividends I might receive in the future!

[shoes]

Not much I can do increase it, I dont want to cut salary, there is no more expensives I can claim

Take longer breaks between contracts and only take money out of your company up to the higher rate. You may as well be permie if you're going to spend all your time in an office. Stupid government gets less of your money and you get a load of time off. Everyones a winner.

[Gonzo]

Just received my personal tax figures. The total tax liability for 2006/2007 is more than I was expecting to have to pay including the payment on account.

Then there is the payment on account on top.

Last year I got a refund, so no payments on account were made last year.



I can pay it, but still.

[Bumfluff]

I got to pay both my pers tax (balance payment and on account) and CT by Jan 31st, total bill just over £28k , I spent last night looking down the sofa for it.

Just did my calcs to work out take home from invoice amount, I pay myself £13k and take the rest as divs, expenses approx £2k a year, Im taking home overall approx 66% seems quite low I thought I would be just over 70%, does 66% sound right, what do others come in it ? Not much I can do increase it, I dont want to cut salary, there is no more expensives I can claim

[thunderlizard]

There you go Cumbernauld. Spend it sensibly!

[thunderlizard]

Actually I might as well pay mine now. That way I'll get a printed bank statement proving it went in before the due date, which will come in handy for when Hector sends me the usual erroneous penalty notice.

[thunderlizard]

The usual deal is:
(1) they ask you for the whole amount of tax payable for the year just ended, minus what you've already paid (by PAYE etc.) This is the "balancing payment"
(2) they ask you to pay the same amount as (1) again, in preparation for the next year: half now and half later ("payment on account").

(2) is because they assume whatever un-PAYE'd income you had this year you'll have again next year, and because The Treasury couldn't possibly wait until you'd actually done next year's accounts and received it for sure, oh no, that would be far too simple; the country would have gone bust by then; and anyway it's no fun unless there's a Byzantine overpay-and-claw-back system for Capita to bollox up.

[dude69]

Urrr ????? Your company declays a div, you have shares in the company you recieve the dividend, that dividend then becomes personel income, and therefore you declare it on your SA if you do one.

hmm, that's true, I think I was just a bit disconcerted by the number of 'I's in the original sentence... Got to keep self and company separate

[ratewhore]

Dividends are paid by companies! Not individuals.

And individuals do not spend companies' money!

Correct on both counts of course. But BrilloPad was being asked to make payments on dividends he has received. Therefore, it's his own personal tax...

[Bumfluff]

Dividends are paid by companies! Not individuals.

And individuals do not spend companies' money!

Urrr ????? Your company declays a div, you have shares in the company you recieve the dividend, that dividend then becomes personel income, and therefore you declare it on your SA if you do one.

[dude69]

This is personal tax, not company tax we are talking about...

Dividends are paid by companies! Not individuals.

And individuals do not spend companies' money!

[Troll]

Is anyone actually even pretending to run a proper limited company in this place????

All are tax dodging, income shifting, not paying fair share, fly-by-night types around here... Gordos right...hangings too good for 'em

[SallyAnne]

Is anyone actually even pretending to run a proper limited company in this place????

Are freelance people limited companies too? Or are they self employed?

[ratewhore]

Is anyone actually even pretending to run a proper limited company in this place????

This is personal tax, not company tax we are talking about...