Taxing Question for part time sales job

beastman

CLAPTON wrote: »

something like this

income
5482

tax deductable expenses

mileage 40p per mile i.e. 40x 6930 = 2772... this assumes that this is all business mileage and does NOT include home to office mileage and it assumes the company does NOT pay any petrol / mileage expenses to you.

-mobile and landline cost 350
-accountants 300 (seems huge in relation to income)

so total costs are 3442


so taxable pay is 6930-3442 = 3508

so tax is 20% of 3508 = 702

plus some NI depending how the income is distrubuted over the year.

You say maybe you can claim clothes... why is this ; what sort of job is it?

thanks again - I see where you are going with this - I think - the downer is it means I'm getting paid even less than I though - the job is selling jewellary and the clothes thing was me guessing I could perhaps claim for buisness clothes (ie shirts/suit/shoes).
I have tinkered with the figures and reduced the accountants fees and was hoping you could see if I'm on the right track now:

5482 income

tax deductable expenses

mileage 40p per mile i.e. 40x 6930 = 2772

-mobile and landline cost 350
-accountants 200

so total tax deductable costs are 3322

so taxable pay is 5482 income - 3322 = 2160

tax @ 20% of 2160 = 432

Profit after tax and expenses is really this?

5482
- 432 tax paid as above
-1732.50 (car and fuel costs calculated at 25p per mile - ie the real costs to me including running the car - insurance/tax/servicing and petrol)
- 350 mobile and landline cost
- 200 accountants

---

2767.50

CLAPTON

Sorry, I incorrectly said your income was 6930 rather than 5482 so my working was incorrect.

If you are comfortable that the 'true' cost of the car is 25ppm then yes I guess your 'real' profit after all expenses and tax is 2767.50

Out of interest how many hours do you expect to put in for this return


You can't claim for business clothes unless they are exclusively necessary for the business (like a uniform).

beastman

CLAPTON wrote: »

Sorry, I incorrectly said your income was 6930 rather than 5482 so my working was incorrect.

If you are comfortable that the 'true' cost of the car is 25ppm then yes I guess your 'real' profit after all expenses and tax is 2767.50

Out of interest how many hours do you expect to put in for this return


You can't claim for business clothes unless they are exclusively necessary for the business (like a uniform).

thanks man - I think I now know where I am with this now - the problem is I would have calculated I would be working over 500 hours for this kind of money so I now have facts and figures that I can use to go back to the company that show I am getting less than the minimum wage! Would you say that 25ppm mile accurtately reflects the cost of running a car.....I know the petrol in my car would come to about 12.5p per mile but then you have the tax/servicing/repairs/insurance.......I have'nt even considered business insurance for the car or the home either.
Nightmare - with any luck and justice I should be able to get the company to double my commission which is what I would need to make it worth its while.

Elaine_Wilson

Thought I would comment about the running costs.

25p is a bit light for my car but may not be too far off for you. But does this include any consideration for depreciation? An extra 7,000 miles will knock the resale value of the car by a whack.