Advice with my national insurance

[mike1979]

I've been self employed since September I was told to pay class 2 of which I do by direct debit most of my work I get paid through CIS so the tax is already done but someone told me I need to pay class 4 national insurance at the end of the tax year on my earnings at 9% so at the mo I'm cr&@ing myself

 

[White Room]

Not one I've heard of....

 

[mike1979]

Whitebeam so I don't have to pay class 4 then do I

 

[White Room]

I don't do the cis tax deduction but would be checking with an accountant...

Just found this...National Insurance to be rebranded as ?earnings tax" | Economia

 

[Chalker]

You do , but its based on profit? Everyone basically pays 29% OF PROFIT. If you haven't made much , you won't pay much

 

[mike1979]

Ok I see so that's after all my receipts then

 

[Chalker]

And after you tax allowance.

 

[mike1979]

I'm still trying to understand it all as I'm going try and do it all myself as the one accountant I spoke to wanted 300 quid to sort it in April of which I thought was criminal as really it's only receipts and I can do it all online so it can't b that hard can it lol

 

[Chalker]

Pay £300 .
Save your stress and the £300 is 100% tax deductible.

 

[White Room]

As above, I pay more than £300 a year but well worth the stress free....

 

[mike1979]

Ye I suppose

 

[Chalker]

What about stock,
depreciation on van and tools cash introduced. Bank charges, interest on finance or loans. Allowance for office?
Do you know all these?

trust me. Why do you get a tiler to tile?

same reason you get an accountant to do your year end!

 

[mike1979]

If I buy a new van is that tax deductible along with the tax and insurance etc I panic about things like this my wife says just pay get an accountant and it will sort it self out the only time I'm not in a flap is when I'm tiling

 

[White Room]

Mine even allows so much postage per year....all these bits add up.

 

[Chalker]

If you bought, for instance a van for £10,000 here are the scenarios.

hire purchase...... Loan at 5% over three years. Total to pay back £11.500. Full tax relief on the £1500 interest and depreciation on the £10,000 over three years.


bank loan...... Same as above


paid out of your own cash. Tax relief on depreciation over three years.

lease. Rentals paid per month 100% tax deductible

 

[Peter]

A wee lesson in getting an accountant:

I used to go to one who charged me about £220 a year. For the last 2 years I did my own returns online because I thought I had it sussed. One year paying tax and one year getting a rebate. Anyway, had to go back to the accountant to get him to draw me up books for those years for a mortgage. Turns out I've been paying a lot more tax in the last 2 years than I should have been due to not writing down the van and not claiming other allowable expenses I had overlooked. Even with his fee, he still would have saved me more money. :lol: