paying 20%

[i=p/u]

i was working for someone who payed my 20% tax. but now i left this guy and doing work on my own. i just finished a job last night and the guy is going to pay me by cheque so which i think i need to pay 20% tax. how do i go about paying this as i dont want to hold onto, and would rather pay it off.

i also brought a guy into help me. the job consisted off £ 841 materials and £550 labour.

so do i get guy who helped me to write me invoice and state on it to pay on tax?

do i take his tax? as will be going through my bankand payment made to me.

i did add 20% on for tax. so any input will be good as this is new to me.

 

[i=p/u]

do i have to have receipts for 841 materials?

 

[DurhamSparky]

you need to register with HMRC (NI) as a sole trader.

your friend also need to do same unless you pay him PAYE and you deduct all TAX and NI contributions from him.

give a locval accountant a ring and for teh sake of about 300 quid a year he will do it all for you including end of year books!!!!

 

[i=p/u]

we are both self employed and pay our own national insurance/class 2 with is minimal.

i do think it is the accountant i need to speak too....

 

[i=p/u]

its just the other guy is saying i let him pay his own tax.

 

[DurhamSparky]

if he wants to pay his own tax get a invoice of him for professional services...! your remit ends there..! if he then avoids tax thats not your problem

 

[Knobhead]

For gods sake speak to an accountant!

My ex wife was a tax inspector, she could be vicious!

 

[Dave 85]

In my experience, this nonsensical CIS system has led to most soletraders just paying their casual subbies in cash (20% less) or having the client pay them direct.

You cant pay your own income tax on every job. You have to charge the full amount then do a tax return at the end of the tax year. If you feel compelled to spend all the money your suposed to save for tax during this period then do so and just have plenty of lube ready for when you submit a tax return and cant pay it.

Btw if you've been doing purely CIS work in the past and not doing tax returns then HMRC probably owes you quite a bit of money.

 

[Guitarist]

i was working for someone who payed my 20% tax. but now i left this guy and doing work on my own. i just finished a job last night and the guy is going to pay me by cheque so which i think i need to pay 20% tax. how do i go about paying this as i dont want to hold onto, and would rather pay it off.

i also brought a guy into help me. the job consisted off £ 841 materials and £550 labour.

so do i get guy who helped me to write me invoice and state on it to pay on tax?

do i take his tax? as will be going through my bankand payment made to me.

i did add 20% on for tax. so any input will be good as this is new to me.

I think that from now on I will add 20% to my customers bills at the end of each job, to cover my tax.

 

[oldtimer]

You need to keep good business records then either get an accountant or do a self assement as for tax its not rocket science you can earn £8105 befor tax thats £675 a month now say you made £1075 after expenses that means you have to pay tax and NI on £400 20% + 9% so get a seperate savings account and bank £120 or even £140 to err on the side of caution so when the tax bill comes in its not a shock just go and pay it

 

[Farmelectrics]

Put it in your bank say nothing take it as Brucey bonus and then set an accountant up for next time