How Much Tax will i have to pay?

faringdon

Thanks youre right. But since 0.28 * £8698 sounds easy….i might try and look in to my Gov.uk account and have a crack at the Tax Return myself. How long do you think it will take?….if i dont manage to finish in one sitting then does it save the stuff youve inputted? , so you can continue next time?…sorry to ask , but i've never filed a Tax Return.

I am thinking its going to ask me for an invoice number, amount earned and the company number of the company that payed me, and when i earned the money, and my NI number…..is there anything else they may ask?

Though if an accountant knows how to offset my Tax for travelodge expenses then yes, i would prefer an accountant….but i would be worried about being ripped off by an accountant…as i know nothing about them…..i still have some details on how to seek good accountants on your kind other posts, so will try and re-find that, thankyou.

Is there a well-known accountant brand that is trustworhy?…for this kind of simpleton accounts like mine?…..eg like the "Travelodge" of accountants?….i mean, when i send money to travelodge i am sure that i am not going to be ripped off…is there a similar accountancy agancy?

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82081249#Comment_82081249

Income Tax rate may be 20%, but it depends on your total income for the year.

Upthread, you suggested your total income for the year was above £50k so that might mean a different rate applies to the Sole Trader income. That amount might even be spread across two different income tax rates.

NIC is not as simple as just applying 8%.

Your income tax liability for the Sole Trader income will be reduced by any allowable expenses that can be deducted before calculating the income tax to be paid. An Accountant would be able to advise on what allowable expenses can be deducted. The allowable expenses may (or may not) include your Travelodge stays and may (or may not) include other costs which you have not considered.

The value of an Accountant has been very well expressed by @Macron but, really, it will just give you the peace-of-mind that everything has been done correctly and save ongoing anxiety about the matter.

Your previous thread where you asked about how to find an Accountant is below. I can't see that any better advice can be given on that front by considering the question again:

https://forums.moneysavingexpert.com/discussion/6676237/electronics-engineer-contractor-needs-an-accountant

sherlock228

https://forums.moneysavingexpert.com/discussion/comment/82081249#Comment_82081249

again you show utter lack of basic knowledge
NIC for self employed is not 8% on a SE element of 8,698
are you seriously suggesting that you had zero expenses in performing SE work for 2 different customers?

an accountant will know the basics and most certainly will find expenses to reduce your profit since it appears at least one customer required you to travel to them

faringdon

Thankyou, i only have invoices for the Travelodge stays which amounted to £721.

Presumably an Accountant will be able to deduct that from my Tax bill?

QrizB

Presumably an Accountant will be able to deduct that from my Tax bill?

If your accountant agrees it's an allowable expense, they'll claim it for you. As an expense, it will decrease your self-employmrnt income for the year and reduce the amount you pay tax on.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82089030#Comment_82089030

An Accountant will be able to assess your overall income which, on the basis of your threads as a whole, is complex in your case with a mix of directly employed PAYE income, Umbrella Company income, Sole Trader income and own Ltd Co. income.

An Accountant will be able to assess all those elements and advise on the respective allowable expenses, which might include the overnight accommodation. It depends on the details as to whether overnight accommodation is or is not an allowable expense.

An Accountant might also consider whether any allowable expenses are available for items such as train / car travel expenses and parking, use of home office, phone, IT you needed to provide as a Contractor, relocation, correct recording and bad debt provision for unpaid invoices. These are all some of the queries you have raised recently.

Just to note, if the Travelodge stays are an allowable deductible expense, it will not reduce the tax bill by the total of the £721 but by the respective marginal tax rate applicable. In your case, based on all your threads together, I expect this to be 20% or 40% so the reduction in tax payable would be £144 to £288.

The most important thing an Accountant can do is give you peace of mind that you have paid the correct tax, not paid tax unnecessarily, and will not fall foul of an investigation by HMRC.

faringdon

Thanks, though i have not done any Ltd company work in my life, and do not have a ltd company. As such, my Tax will be easy(?) , and surely it will be possible for me to just log in to Gov.uk and do my sole trader tax return and input the travelodge expense?…ie, not needing an accountant to do this for me?

Yes i have also done PAYE work both directly and through an umbrella, but surely all the Tax has been done for that by them?

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82089064#Comment_82089064

Oh, sorry, I thought you had your own Ltd Co as well:

https://forums.moneysavingexpert.com/discussion/6676237/electronics-engineer-contractor-needs-an-accountant

You can prepare and submit your own tax self assessment, in so far as there is no legal requirement to have an Accountant.

You are responsible for the completeness and accuracy of the submissions whether or not you have an Accountant.

However, where an individual has a limited understanding of tax and associated matters, then an Accountant can do a great deal to assist and ensure that your submissions are compliant. Your comments suggest that you do not have a great understanding of tax and associated matters - like vast swathes of the population - and that is why I thought an Accountant would be helpful in your case.

If you have limited queries, you can indeed seek clarification in a forum such as this. The issue with that approach is that, by the nature of public forums, only some information will be available to people commenting, you have no way of knowing how much people commenting actually know themselves, and any information obtained needs to be verified.

Using an Accountant means that you can share full information in confidence and the Accountant carries PI insurance in case of any error on their part. The advice you receive from an Accountant will be more reliable than that from a forum.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/82089064#Comment_82089064

You need to complete your tax return with ALL your taxable income.

That includes your PAYE income . So you need to complete self employment pages AND employment pages.

QrizB

That includes your PAYE income.

It could also include any untaxed savings interest, and any occupational pension income (OP being ex-forces they might have a UK military pension; I've not trawled through their posts to see if they've ever mentioned one).