This Time I'm Really Going To Do It

Watty1

Good meeting with my accountant although my tax bill seems ever increasing.  He is however aware the ex can be vindictive and is sure we can evidence everything and play by every rule in the book in case of an investigation.

Apparently my plan to use the spare money in the business to renovate the barn and start a holiday let will not fly.  It would be complicated tax wise and is seen as the business lending me personally money. I offered to sell the barn to the company but that won't fly either and would effectively be just kicking a tax bill further down the road.

So the conversion can, subject to planning, go ahead, but I have to earn the money, remove it pay tax on it and then do up the barn.      He admired my thought process to avoid the tax both personal and co-operation but it is a big no no.

He suggested using the money to buy an electric car - but - i don't want one a new car so that isn't really an option for me just now.  The most surprising thing was that we discussed the course i have written and his advice was to use it as self employed income for now because if I ever sell the company I could keep the course or gift it with the company or, well it gives me options.

Then we discussed the possibilities for selling the company when I want to retire, which is, admittedly a little way off but still worth putting into my future plan.  I had a figure in mind and he added a zero - I nearly fell of my chair.  We talked about it briefly and I was just astounded    It is  not as clear cut as it might be as the business is very specialised but the idea is now on the drawing board for making a 5 year plan in January.  (Still coasting into the end of this year)..  

badmemory

Sounds like your accountant knows what is what.  Advice is good, following it is a choice.  He does seem to know you (and your work) have a value. Love the added zero!!

KajiKita

Sounds to me like your accountant is a carat gold treasure! What awesome advice and sounding board - I’m impressed 😊
I think your coasting sounds like strategising to me …. 👏😊❤️

KK

Watty1

!!!!!!  !!!   just like that the beginnings of a five year plan vanishes!

My supplier in the USA has decided to sell up. This leaves a lot of uncertainty around my business as I do not know if the new supplier will want to continue our contract.   The supplier has  a number of international contracts in place like mine and intends to try to sell with them all in place but of course this leaves me in uncertain times.

I have work to catch up on as I am, once again, very behind as I have been so down this week and WattyDog needs food (somehow I have run out)  but on my list to do today is to purchase a Christmas Gift for a friend who is coming to stay early next week but also to review exactly where I am financially now  all the bills are paid from ex and sort out what is coming up over the horizon both for me and the business.

Watty1

I decided reviewing money in the business my pension pot and my meagre savings should be a priority and that was quite calming.

It isn't a very comprehensive review as I have taxes to pay and bills to pay and I am carrying credit card debt but if nothing changed, i.e. no inflation and no interest and I empty my pension pot I have enough to live on for some years ahead.  Thus calmed I can turn my attention to actually making some money today by working!

Watty1

In other news I have purchased a coffee table from Marketplace for £20.  

Now, if I was buying new it is a little too high and a little too wide, but it has replaced a cardboard box that I have been using since the ex left and I picked it up from the next village (so minimal transport costs) and it is very nicely detailed and very solid.

I've now replaced furniture that he took for less than £200 by buying second hand and I love the beds and the dining room stuff so much more than that he took.    Its funny what i miss though. He removed a beautiful antique French wardrobe that had half glass doors and lovely detailing - I bought it from a furniture dealer many years ago and he knew it was "mine" so I was surprised he took it but I let it go with no great feelings either way but i do miss the very small nail brush in the shape of a duck that vanished LOL    I have a nail brush but it not particularly effective and with the horses my nails look very grubby so often this winter.

LadyWithAPlan

At least your eyes are wide open re your ex and his vindictiveness.. I would have had a hissy fit re him taking lovely stuff I bought - but you seem far more chilled than I - I have zero patience for fools and those with closed hearts - they get one chance… 
mistakes are one thing but deliberately unkindness never flies in LaPlans World 

he is gone and you replacing new to you with found treasures is fabulous - enjoy the  treasure hunting 

I have both some vintage furniture and the odd free or inherited piece, it’s rare I have actually bought  anything brand new over the years furniture wise and my home looks fabulous and very individual as I am sure your collection does and will grow 
They will have to pry some of my one off pieces from  my cold dead hands  

re the accountant -most of them are not great tax advisors -even good ones just want you to cross your t’s etx - not about maximising you .. 

 annoying re the barn saving - is it worth you sticking the barn money into a pension (vanguard SIPP is always my starter choice) so you save tax that way at source - so no NI and dividend tax rate, no 19% corp tax from your ltd company ., and then pull it out when you need it post 57 to build barn - yes you’d pay tax then on 75% of withdraws  but if you could stagger it .. 
or I guess a fixed rate isa depending on your timescale 

when you sell a business they normally go for 3 x annual revenue after expenses as a starter benchmark / they have to look at cost of replacing you in the business  plus if there is a lot of equipment that can skew the price. 

So in the years before selling the more strict you are with putting costs that are maybe part home part business not in the company the better so more tax now more profit to sell later 
- I have sold a couple and been in talks on others so have some experience 

Watty1

The SIPP for the barn money is an interesting idea thank you @LadyWithAPlan

Selling the company might depend a lot on what happens with my supplier but all good. I've spent the day working and my office looks tidy. Just 23 invoices to check and then a glass of fizz and a few more decs on the christmas tree I think

Watty1

Rather more than one glass of fizz as I didn't have any tiny bottles so opened a large one that was in store for the festive friends get togethers.  I also realised this morning when I reviewed matters my very nice crystal glasses (£1.25 each from charity shop) hold rather more than I thought

Accordingly the Christmas tree did not get finished and the house still looks a mess so have turned all 3 horses out and will get to straightening things up before this evening when VNM and I are off to meet friends at a village panto.

I have turned three horses out and had a good review of the work the gardener has done and I'm impressed. No transformations but quiet change everywhere. My neighbours laurels have been cut back but not so they would notice, the apple orchard has beautifully pruned trees.  Way more pruning than I would have dared but the trees look great now.  I lost all my fruit due to brown rot and hopefully next year I will get a crop once again.

The paths that could be cleared have been and the rest have been sprayed, the beds have been weeded and the hedges cut.    He has emailed me the name of a plant that has thrived by the front drive/garden and suggests I plant a few more of them to create a border as the one that is there has thrived despite the years of neglect.

Having had a good walk round I've decided that he was correct, some of the apple trees do need a stake so I will count up and go and buy some over the next few days and some of the paths do need lifting and re-laying.  They are stone chippings between brick and are now full of mud.  Earlier in the year I did try washing it out on one path, which still looks good but it took me the whole of a bank holiday to do one path so to finish the garden seems overwhelming.  I'll look on line for some stone supplies (the current paths are a stone chipping rather than actual gravel) and look into relaying it.

Watty1

Have purchased a sample bag of stone chippings on line that I think will work for the paths.  I've costed the job out and with a skip to get rid of the rubble it will come over budget especially with the need to re-plant.

For some reason getting the outside space into order ready for spring is important.  Probably because I have found a reliable person that actually turns up and also I can see I can do a lot of the jobs myself.   More significantly being outside raises my mood.  I think this house is too mixed up with the ex and the traumas there so I think, next year I will also need to push forward with barn plans.  Hopefully in January the new Class Q legislation will be in sight lines (this will permit the conversion of non agricultural barns to residential rather than business use.