End of year help

zygurat789

baz2277 wrote: »

Hi all,

I'm just wondering if anyone can help re end of year bits - it'll be my first full year of trading at the end of Jan, the business is set to make a profit of around £10k (on a turnover of about £180k) after vat, and personal drawings of mine of around £20k.

What will I be looking to pay in terms of other taxes and any tax etc on my drawings, and when? Sorry, don't know if that's too simple a way of putting it - I'm aware of some of the things but not all.

Thanks in advance

Never ever describe your profit as being after drawings again. You can see the mayhem and confusion you have caused and your original query has been left unanswered. Aside from anything else any accountant, taxman or other business man you talk to will not understand you.
Profit is what the business makes. Drawings are what you personally spend and are, therefore, nothing to do with buisiness profits.

If this is the first full year on which you are paying tax ie your first 12 months of trading (which can be different) and your profit is £30K
Then your liability to tax and class4 Ni will be:-
£30000-8105 = 21895 X 20% = £4379 tax and
£30000-7605 = 22395 X 9% = £2016 class 4 NI

However, this is not what you will have to pay.
Due 31/01/14 £6395 less what you paid ON ACCOUNT on Jan 31 and Jul 31 2013
Also due 31/01/14 1st on account payment for 2013/14 which is £3197.
And on 31/07/14 2nd payment on account of £3198

Your total payment may be as high as £9592 on 31 Jan 2014. Good job there's still £10,000 left!!!!!

Oh did you buy any capital assets during this period and, if so, how have you dealt with them as regards profit? It may affect those payments considerably

If ever you have any other queries like this you should post them on the Cutting Taxes board

nomunnofun

Sorry zygurat - not sure that you have read my previous post. OP only commenced February 2013 - only 64 days trading 2012/13.

He would have made no payments on account January and July 2013.

Your figures would be correct for January 2015 though although, if no tax to pay in January 2014, no payments on account again January and July 2014.


EDIT:

AAAH - I think that you have assumed OP started February 2012 with first accounts to 31st January 2013. I have assumed one year later - some clarification needed methinks!!!

baz2277

Thanks for all your responses, some helpful, some a little blunt lol. I agree there are a lot of blanks to fill in to arrive at the correct figure! There was initial ££ investment and current stock to consider as well...

I will be seeing the accountant in the next week or so, so all will become clear then. I just wanted a ball park figure but now realise that this not going to happen!

Thanks again.

zygurat789

nomunnofun wrote: »

Sorry zygurat - not sure that you have read my previous post. OP only commenced February 2013 - only 64 days trading 2012/13.

He would have made no payments on account January and July 2013.

Your figures would be correct for January 2015 though although, if no tax to pay in January 2014, no payments on account again January and July 2014.

So it's not his first full year.
If you look at the start of my second para "If this is.........

The OP should try and use the recognised terminology.
If he makes no payments on account jan and jul 2014 then he can expect to pay just a bit less than the amounts I calculated the following year. 2015.

nomunnofun

baz2277 wrote: »

Thanks for all your responses, some helpful, some a little blunt lol. I agree there are a lot of blanks to fill in to arrive at the correct figure! There was initial ££ investment and current stock to consider as well...

I will be seeing the accountant in the next week or so, so all will become clear then. I just wanted a ball park figure but now realise that this not going to happen!

Thanks again.

When did you start trading? If February 2013, what were you doing prior to this?

nomunnofun

zygurat789 wrote: »

So it's not his first full year.
If you look at the start of my second para "If this is.........

The OP should try and use the recognised terminology.
If he makes no payments on account jan and jul 2014 then he can expect to pay just a bit less than the amounts I calculated the following year. 2015.

Hopefully we will find out. I had assumed that his first full year will be to the end of next month, January 2014. (See my edit) Perhaps. Perhaps not.

baz2277

I started on Feb 1st this year, was made redundant in December 2012, so had a month signing on. Initial input of cash was 18k to buy stock. No other loans or finance since.

nomunnofun

baz2277 wrote: »

I started on Feb 1st this year, was made redundant in December 2012, so had a month signing on. Initial input of cash was 18k to buy stock. No other loans or finance since.

You could well have a small amount of tax to pay but the basis will be as outlined in my post 20.

You really do need an accountant for this and quickly. At this stage an estimate of the profits made from Feb 13 to 5th April 2013 is required (if you do not have the figures for the full year) and the best that you could hope for. However, that is not unusual in first year businesses and an amended return can be submitted when full accounts are completed.