End of tax year question

firehawk_2

im new to this whole business and dont know how the system works. I have an accountant that does the taxes for me and everything. I have my own LTD company in IT and only me in it, so working for myself if you will.

This will be my first full year in the business of my own company.
roughly speaking, how much would you expect to pay for the end of year tax? I just had my Q2 tax for 2008 and thats been paid, but this end of year tax in April, how does that work?

how do you determine roughly how much you would be paying? I know, odd and hard question to ask but what factors are to be taken into account? I just want to make sure I have enough money in the business account to pay for...whatever it is I need to pay.

I have been following my "quotes" and what not for my own pay and how much should be left in the business account, but still pretty worried - I guess im just like that.

taxdoctor

Hi Firehawk,

I think the first this you need to qualify before any advice can be given is whether you

a) if it's a proper registered Ltd Co

or b) you're registered as self-employed.

I know you said it was a LTD Co but people often get them confused. The tax treatments of both are very different.

I'm going to assume from what you have said about Q2 tax that you have set up a Ltd co, and you are the only employee.

If this is the case then there shouldn't be too much for you to worry about due to the impending end of the tax year. This is because Companies pay tax in different ways to individuals/Sole traders.

Companies pay corporation tax based on the profits they have made, they pay these 9 months after the end of their accounting year (not the end of the tax year)

As an employee of the company I imagine you would have been receiving a wage and paying tax through PAYE as you go along so that should all be sorted.

If however you aren't trading through a Ltd co then things change somewhat!

If you can clarify this issue then more advice can be given!

I have to add though that if you have your own accountant it may be best talking to them first, they'll know your exact circumstances and will be able to provide you with the best advice.

firehawk_2

Thank-you so much for your wonderful response!

yes, I am the only person in the LTD company - I am the only employee

I should talk to my accountant yes but he always states that if I've followed the estimates/quotes for the wage and how much to leave aside (the %age of take home page) Then I should be ok, which is what I have been doing but still concerned....

Glad

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL]