How easy is it to complete a tax return online?
I've got 6 months worth of invoices and receipts. Is it worth me doing this myself to save money on accountant's fees?
United Kingdom - 4 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
Why not? Self assessment was intended to be just that. HMRC publishes a lot of help sheets on their web site, and their telephone help line is very helpful.
Answer 2 :
It's not too bad. Make sure you have all the info. you need before you start. Add up the receipts etc. for each box that they need to be entered in. I found it easier to complete a paper return in pencil and then transfer the figures over. Once it's complete, print a copy off and note what goes where for next time!
Answer 3 :
Get a cheap financial package such as Microsoft money and record your income and outgoings on that. Limit the categories you save entries into to those on the HM On-line tax return (there were only 5 categories last year so it's simple to do.) I then use Taxcalc which is very easy to transfer figure to from the software mentioned above. Taxcalc guides you through the tax return and checks it for you. Once you are happy with the result Taxcalc lets you file the form via the HM Revenue website. So you need some cheap financial software which you can use over and over. Microsoft Money is about £50 as a one off payment. Then Taxcalc costs about £35 per year. This is a fraction of the cost of an accountant and you have total control over your accounts. Go of it. BUT one word of warning, don't leave it until the last minute, it's easy to leave things until too late and end up panicking. Personally I prefer to have everything done by November of the year.
Answer 4 :
Good advice above. Just to add a further point; if you're gonna do your own tax return online please remember to keep some record of how you calculated the figures that you put onj the tax return. I deal with no end of tax investigations where an individual has completed their own tax return but it becomes impossible to reconstruct what has been put in which heading. Simple method: Seperate all receipts into categories of expenses eg ; motor expenses, purchases for resale, telephone, stationery etc. Add each pile up, staple them together and write the total on the front invoice. If this is your first tax return I'd do a little snooping around on the HM revenue and Customs website - look at sections on business mileage and capital allowances claims. You dont want to miss out on any expense you may be able to claim
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Tuesday, December 28, 2010
Tuesday, December 14, 2010
How do I change from being a sole trader to having the protection of a limited company?
How do I change from being a sole trader to having the protection of a limited company?
My question is really how do I formally "activate" the protection of a limited company (which I have already bought off the shelf) and transfer out of sole tradership? Do I need to inform someone that I am switching or is it from the point of submitting company accounts. My accountant is confusing me! Thanks
Other - Business & Finance - 3 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
If your accountant can't explain the situation in ways that you can understand, then speak to a different accountant. If that still doesn't help, you likely need to contact a lawyer. You're dealing with issues that are both financial and legal, and speaking with both might be the best thing, anyway.
Answer 2 :
i believe you register your sole proprietor business somewhere. it should be the same governing body that takes care of registration of a private limited company. in my country, we do all these at the registrar of companies. i believe you guys will have similar governing bodies.
Answer 3 :
Your limited company needs to buy the assets and goodwill of your sole trader business. You also need to inform all your customers, suppliers and other contacts that your business has now been incorporated. From a financial point of view, your sole trader business has ended, so you need to draw up final accounts. There may also be capital gains implications, especially if the goodwill of your business is valued highly. You may have the choice of paying this now, or "rolling over" the gain into the shares you will now hold in the ltd company. The "purchase" of the assets can be in return for shares in the ltd company. You will own both, so the net value of what you personally own does not change. Bear in mind that the "protection" is going forward only. You cannot avoid liabilities that have already been incurred as a sole trader. Your accountant or solicitor should be able to advise you on all of this.
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My question is really how do I formally "activate" the protection of a limited company (which I have already bought off the shelf) and transfer out of sole tradership? Do I need to inform someone that I am switching or is it from the point of submitting company accounts. My accountant is confusing me! Thanks
Other - Business & Finance - 3 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
If your accountant can't explain the situation in ways that you can understand, then speak to a different accountant. If that still doesn't help, you likely need to contact a lawyer. You're dealing with issues that are both financial and legal, and speaking with both might be the best thing, anyway.
Answer 2 :
i believe you register your sole proprietor business somewhere. it should be the same governing body that takes care of registration of a private limited company. in my country, we do all these at the registrar of companies. i believe you guys will have similar governing bodies.
Answer 3 :
Your limited company needs to buy the assets and goodwill of your sole trader business. You also need to inform all your customers, suppliers and other contacts that your business has now been incorporated. From a financial point of view, your sole trader business has ended, so you need to draw up final accounts. There may also be capital gains implications, especially if the goodwill of your business is valued highly. You may have the choice of paying this now, or "rolling over" the gain into the shares you will now hold in the ltd company. The "purchase" of the assets can be in return for shares in the ltd company. You will own both, so the net value of what you personally own does not change. Bear in mind that the "protection" is going forward only. You cannot avoid liabilities that have already been incurred as a sole trader. Your accountant or solicitor should be able to advise you on all of this.
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Tuesday, December 7, 2010
How long should my wife wait for her P45 from her ex employer?
How long should my wife wait for her P45 from her ex employer?
After asking for a P60 for 20years,fobbed-off that the accountant is to blame,can my wife have been swindled out of income?The former employer put a 2year NI shortfall right recently,following a few brown envelopes.My wife has a full 30yrs contribution,she has been informed.Tax is our main worry,is the former employer wholly responsible?,if that has not been paid by her.
United Kingdom - 2 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
The employer is responsible for making sure the employee pays the correct National Insurance and tax. If you have been informed in writing of this being corrected, then KEEP this letter safe for future reference along with any recent pay slips. If your wife had to complete a tax form every year, the correct tax would be deducted. If she didn't have a tax form, then the employer is responsible. Don't worry about a tax bill, but you MUST push for a P45, as this should have been given at the time of leaving or within two weeks by post. If you continue to be fobbed off, go to your local tax office and they can supply the details of paid tax. Unless your wife is going for another job, and you have received your pay and are happy with it, I wouldn't go raising any alarm bells with the tax man, and just let it go.......
Answer 2 :
Employer is responsible, and can be held liable for any underpayment that has occured through negligence or him being dilatory. You don't say what your wife's plans are with regard to future employment. Tax office can write out to employer for leaving details if he hasn't sent them in, and if necessary initiate an enquiry into his tax affairs, although it sounds as though that may have already been done. If employer has had to pay any tax underpayment, employee isn't told details, due to Official Secrets and Data Protection Acts, and no repayment can be claimed on it. I suggest your wife contacts her tax office, who will tell her if previous pay and tax details can be sent to any new employer, or if they need any details with regard to last employer.
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After asking for a P60 for 20years,fobbed-off that the accountant is to blame,can my wife have been swindled out of income?The former employer put a 2year NI shortfall right recently,following a few brown envelopes.My wife has a full 30yrs contribution,she has been informed.Tax is our main worry,is the former employer wholly responsible?,if that has not been paid by her.
United Kingdom - 2 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
The employer is responsible for making sure the employee pays the correct National Insurance and tax. If you have been informed in writing of this being corrected, then KEEP this letter safe for future reference along with any recent pay slips. If your wife had to complete a tax form every year, the correct tax would be deducted. If she didn't have a tax form, then the employer is responsible. Don't worry about a tax bill, but you MUST push for a P45, as this should have been given at the time of leaving or within two weeks by post. If you continue to be fobbed off, go to your local tax office and they can supply the details of paid tax. Unless your wife is going for another job, and you have received your pay and are happy with it, I wouldn't go raising any alarm bells with the tax man, and just let it go.......
Answer 2 :
Employer is responsible, and can be held liable for any underpayment that has occured through negligence or him being dilatory. You don't say what your wife's plans are with regard to future employment. Tax office can write out to employer for leaving details if he hasn't sent them in, and if necessary initiate an enquiry into his tax affairs, although it sounds as though that may have already been done. If employer has had to pay any tax underpayment, employee isn't told details, due to Official Secrets and Data Protection Acts, and no repayment can be claimed on it. I suggest your wife contacts her tax office, who will tell her if previous pay and tax details can be sent to any new employer, or if they need any details with regard to last employer.
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Wednesday, December 1, 2010
What is the lowest amount of money you could live on?
What is the lowest amount of money you could live on?
I am thinking of only woking part time (3 months on to 2 months off). I have been told from temping agencies that I can get about £11-13.50/hour doing finance work (I am a part qualified accountant). It will be a big drop in income but I reckon I can do it. My core bills come to £660 per month not sure how much I will need otherwise. How much do you reckon you could live on if you held back on luxuries? PS my bills are as follows. Rent (not mum or dad, private rented flat in west end of Glasgow) = £395/Month Council Tax = £120 Gas & Electric = £60 Phone = £25 Mobile = £20 Various other = £40
Personal Finance - 12 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
About 15 grand more than I earn... Seriously though, If your gonna work part time then you will have more leisure time and you might need more money to do fun stuff...
Answer 2 :
$490
Answer 3 :
Don't even think that!
Answer 4 :
$40,000.00 annually , but it would be real tough :))
Answer 5 :
Your bills come to £660 per month? You must be living with mummy and daddy then, in which case, that's all you need eh?
Answer 6 :
as I am appraching maternity leave, I am about to find out... salary vs. statutory pay (about £100 a week)
Answer 7 :
Thats a tricky one - because every time we get a pay rise we spend more via credit cards catalogues etc....the amount of debt we have just now is ..about ... £2500 a month - dont even talk me about the cars - thats his dept ! thats the mortgage - credit/store card bills .etc and our 4 kids cost us an arm & a leg... sometimes I just dont know how we manage...and if we were to cut back on luxuries like Sky, Broadband ..Cinema- Mickey D's etc etc ,, there would be riots in our house.. the bills are out of control....or is it my spending habits..
Answer 8 :
there are no parameters for this,as many factors are involved in it,the place/town you live the envirement of the surrounding people and size of your family and your needs,if contained
Answer 9 :
Let me congratulate you on your decission to reduce Luxuries. This is the only point which is positive in your question. All others are Negative. Why would any one want to do what you are asking? If the decission to take off for 2 months is to Learn some additional lessons relating to accounting, then it is a good idea for short time, but otherwise. You will become lazy over a period of time. You have an ability to work now but YOU WANT TO REST, but over a period of time you may have to work BUT YOUR BODY MAY NOT SUPPORT YOU BECAUSE OF OLD AGE. It is advisible to reduce expenses and Increase income and Retire early rather than taking a break every 3 months. Bye and all the best. AJ
Answer 10 :
probably another £400 per month to cover other expenses.
Answer 11 :
Well here in Namibia, I can Survive comfortably on N$ 2 000. N$ 1 200 for my flat water and lights included and then N$ 800 for food.
Answer 12 :
food in TESCO clothes in charity,well £ 200 a month
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I am thinking of only woking part time (3 months on to 2 months off). I have been told from temping agencies that I can get about £11-13.50/hour doing finance work (I am a part qualified accountant). It will be a big drop in income but I reckon I can do it. My core bills come to £660 per month not sure how much I will need otherwise. How much do you reckon you could live on if you held back on luxuries? PS my bills are as follows. Rent (not mum or dad, private rented flat in west end of Glasgow) = £395/Month Council Tax = £120 Gas & Electric = £60 Phone = £25 Mobile = £20 Various other = £40
Personal Finance - 12 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
About 15 grand more than I earn... Seriously though, If your gonna work part time then you will have more leisure time and you might need more money to do fun stuff...
Answer 2 :
$490
Answer 3 :
Don't even think that!
Answer 4 :
$40,000.00 annually , but it would be real tough :))
Answer 5 :
Your bills come to £660 per month? You must be living with mummy and daddy then, in which case, that's all you need eh?
Answer 6 :
as I am appraching maternity leave, I am about to find out... salary vs. statutory pay (about £100 a week)
Answer 7 :
Thats a tricky one - because every time we get a pay rise we spend more via credit cards catalogues etc....the amount of debt we have just now is ..about ... £2500 a month - dont even talk me about the cars - thats his dept ! thats the mortgage - credit/store card bills .etc and our 4 kids cost us an arm & a leg... sometimes I just dont know how we manage...and if we were to cut back on luxuries like Sky, Broadband ..Cinema- Mickey D's etc etc ,, there would be riots in our house.. the bills are out of control....or is it my spending habits..
Answer 8 :
there are no parameters for this,as many factors are involved in it,the place/town you live the envirement of the surrounding people and size of your family and your needs,if contained
Answer 9 :
Let me congratulate you on your decission to reduce Luxuries. This is the only point which is positive in your question. All others are Negative. Why would any one want to do what you are asking? If the decission to take off for 2 months is to Learn some additional lessons relating to accounting, then it is a good idea for short time, but otherwise. You will become lazy over a period of time. You have an ability to work now but YOU WANT TO REST, but over a period of time you may have to work BUT YOUR BODY MAY NOT SUPPORT YOU BECAUSE OF OLD AGE. It is advisible to reduce expenses and Increase income and Retire early rather than taking a break every 3 months. Bye and all the best. AJ
Answer 10 :
probably another £400 per month to cover other expenses.
Answer 11 :
Well here in Namibia, I can Survive comfortably on N$ 2 000. N$ 1 200 for my flat water and lights included and then N$ 800 for food.
Answer 12 :
food in TESCO clothes in charity,well £ 200 a month
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