£800 tax bill for £9k income - too much?

Any

http://www.amazon.co.uk/product-reviews/0340984449/ref=dp_top_cm_cr_acr_txt?ie=UTF8&showViewpoints=1

This one looks good for tax... cannot see there the one I saw in shop...

The best is really to go to a shop (big one) and go through the books. Quite often the format makes quite a big difference as it's easy to loose yourself in it if the format is difficult to follow.

The one I went to (WH Smith I think?) had like 15 books on simple accounting.

ragz_2

Any wrote: »

http://www.amazon.co.uk/product-reviews/0340984449/ref=dp_top_cm_cr_acr_txt?ie=UTF8&showViewpoints=1

This one looks good for tax... cannot see there the one I saw in shop...

The best is really to go to a shop (big one) and go through the books. Quite often the format makes quite a big difference as it's easy to loose yourself in it if the format is difficult to follow.

The one I went to (WH Smith I think?) had like 15 books on simple accounting.

Thanks for that, I'll have a look. And thanks for all your help
Can I put the book down as a business expense? lol
I'd put off buying a book on tax as a lot of it jsut isn't relevant to OH as a sole trader, but that one looks pretty good, I think I'll give it a go.

John_Pierpoint

Can I just add for the casual reader, that when you first start working on your own account you get a tax holiday until the January after your first 5th of April. You submit your first tax return and the system works all the tax you already owe on your profits, and demands tax in advance for the year that has not finished yet.

Comes as a nasty shock to people who have spent it all.

What capital assets does your husband use in his business - it is sometimes cost effective to simply hire what you need when you need it; let someone else worry about depreciation and the risk of owning something that could get broken or become technically obsolete..

McKneff

Glad you pointed that out PP, it was a nasty shock to me a few years ago
when HMRC wanted last years tax, this years tax and next years tax all at once. Not many new to self employment are aware of it.

ragz_2

John_Pierpoint wrote: »

Can I just add for the casual reader, that when you first start working on your own account you get a tax holiday until the January after your first 5th of April. You submit your first tax return and the system works all the tax you already owe on your profits, and demands tax in advance for the year that has not finished yet.

Comes as a nasty shock to people who have spent it all.

What capital assets does your husband use in his business - it is sometimes cost effective to simply hire what you need when you need it; let someone else worry about depreciation and the risk of owning something that could get broken or become technically obsolete..

I don't understand that bit?

Capital assets, he's a gardener so things like hedge cutters, lawnmowers, etc. We bought most second hand so in the first year it was less than 1k worth and this year about the same. He uses them a lot and does his own servicing, he loves his machines so I don't think I could convince him to hire them! But when the time comes to get a van I think we'll lease one.

ragz_2

McKneff wrote: »

Glad you pointed that out PP, it was a nasty shock to me a few years ago
when HMRC wanted last years tax, this years tax and next years tax all at once. Not many new to self employment are aware of it.

I can't see anything about that on the letter he was sent. I thought you fill out a tax return for the previous year, they work out your tax and send you a bill...
every year
Is that not how it works?

Debt_Free_Chick

ragz wrote: »

Yes he's self employed as a sole trader.

Figures from tax calculation they sent the other day

Profit from self employment £8,692

If his income was £9,300 (ish), then his expenses look low to me. This is where you either need to do a lot more research or pay an accountant to ensure you are claiming all applicable allowable expenses.

HTH

ViolaLass

ragz wrote: »

I can't see anything about that on the letter he was sent. I thought you fill out a tax return for the previous year, they work out your tax and send you a bill...
every year
Is that not how it works?

'They' will assume, unless you tell them otherwise that in the next year you will earn the same amount of money and will therefore demand half the tax upfront (not all of it). Next year, of course, you'll already have paid half-ish of it.

Rolo_Tomasi

You only have to make a payment on account if the tax you owe is more than £1000 so this will not matter this year. You need to be aware though as the tax is very near this threshold.

anon_ymous

I dont know how true this is, but apparently you can also call your accountants bill an expense