Free tax help

gracet

HI there,

I have been contracting or about 6 months and many people have encouraged me to do so by opening a LTD company where I would be the director, as they say it wuld be more tax effective seeing that I fall on a higher tax bracket. Now the issue is that I have got a couple of properties rented out and I am a bit concerned that a LTD company under my name would increase a lot future CGT. I know that under the LTD company I would initially pay only the normal tax (19% compay tax) then I would get paid partly in dividends and partly in a company a/c. Then at the end of the year I would still need to pay more tax, due to my earnings....

What would be your opininon on this? I am very confused...

I have got another question. Being a higher tax payer ( employee/contractor)can I put on my tax return ( this year I'll be doing one which includes my properties too) any charity donation I have been giving during this financial year? If so, do I need any receipt/invoice from the charitable organization?

I look forward to hearing from you soon.
GT

gfreelance

Hi Tony

I recently started freelancing on top of my normal job. As I began this in February, after the deadline for self assesment, will I have any tax liabilities in this financial year. I have been told I will not be liable for any tax until April 2007. Is this correct. How do I go about moving to self assesment?? Sorry this all seems a bit simple but I've always been PAYE before.

Thanks

G

freckles68

I did some work for the UN outside the EU recently. They paid my fees into my UK account, and while I was there also gave me two cheques for per diems which I cashed locally; I brought some cash back with me and spent that in the UK. I did not keep receipts for my expenditure while abroad because I (mistakenly, I now realise) thought that I would not be taxed on any of these earnings, but I did keep a very detailed tally of my expenditure for future expense budgeting reasons. Do I have to pay tax on the per diem payments? And if so, would detailed expense tallies be good enough for expenses against these payments?

On another note, I bought a second hand computer for my (sole trader) work, for £150, and also a mobile for £90. Do these fall under capital expenses?

Thanks for your help.