Reply to: Self Assessment - not enough money to pay?

[chris79]

Get a flexible mortgage if you can, it solves a lot of problems in terms of cashflow.

[Bob Dalek]

Nobody is that stupid

Ken Dodd?

[Bagpuss]

SallyAnne, is this post connected to a post you made some time back where you said you spend what you turnover and then when your tax bill is due you start saving for it?

Nobody is that stupid

[FarmerPalmer]

Do you normally take divvies out of your company to pay your Self Assesment bill?
Or are you more organised than that, putting money aside in your personal bank account?

Has anyone ever not had enough money to pay? What did you do?

keep your income below the 40% tax threshold

[PAH]

I hate the self-assessment. Takes me three hours working out that I owe them 96 pence.

Trying the online one this year. Couldn't be arsed getting the paper one in for October (so they've a head start with the investigations no doubt), and hopefully it'll do all the damn calculations for me, most of which just end up cancelling each other out.

How do I 'get away' with only pennies to pay?

- take divvies but avoid going into top tax band (so corp tax takes care of that one)
- pay minimum wage (so PAYE takes care of that one)
- claim rest I need as expenses

Also helps to build up a war chest (by leaving the excess in the company account) for potential prolonged bench time or for losing on dodgy plan Bs.

[shoes]

How about not spending every single penny of your income every month? Haven't you got a couple of quid in a savings account?

[Ravello]

Every divi I pay is split. 60% to me 40% to the 'tax' savings account. Come Hector's payday I give him his pound of flesh and usually there is a little tickle left over for me.

If you're putting away 40% of each divi you should have more than a 'little tickle' left over after hector comes-a-calling... You should be left with roughly half of what you've put aside.

[Ravello]

After corp tax?

Yes.

[EternalOptimist]

After corp tax?

yup, pay all your normal taxes, then (in the uk) , around about now, do the calc and get the money ready for january.
Its a VERY rough calc, but it works for me.

[Diestl]

very roughly

(income - 30k) * 0.15

After corp tax?

[Ruprect]

I avoid higher rate tax by having a crap rate and being benched for half the year.

Lol - Viz top tips

[gingerjedi]

Yes - quite a bit too (if you take lots as divis)- and this is what the OP was asking - how do you make provision for this extra tax.

I avoid higher rate tax by having a crap rate and being benched for half the year.

[EternalOptimist]

Ah I wasnt aware of that! What percentage is it of income?

very roughly

(income - 30k) * 0.15

[Diestl]

Yes - quite a bit too (if you take lots as divis)- and this is what the OP was asking - how do you make provision for this extra tax.

Ah I wasnt aware of that! What percentage is it of income?

[Jubber]

If you take more in dividends that then put you into the higher tax rate, then there is additional personal tax to pay on the income from dividends.

Yes - quite a bit too (if you take lots as divis)- and this is what the OP was asking - how do you make provision for this extra tax.