Originally posted by Gonzo
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P45 and Tax. Permanent > Contract mid-Fiscal Year.
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There are 10 types of people in the world, those who understand binary and those who do not. -
Originally posted by topper View PostI'll make sure to run through all this with my accountant, but just to confirm by what you mean about if deferring to the next year, that is only if I take the same out as I would have earned as a permie, it's not deferred if I stay under the higher tax band.
If you can't stay below the higher rate tax band then you have just deferred the tax bill on that money for one year by using the Directors Loan instead of taking a dividend.
I tended to use the Directors Loan Account to withdraw money from the company at the end of the tax year, but I could never stay below the higher rate tax band so the effect was only to defer the tax on those drawings to the following tax year.Comment
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Similar Position
Hi,
In a similar position to the initial posting, left permanent employment to go contracting in July 2011, had been paid more than the threshold in previous employment so have not paid myself any formal wages and was looking to register for PAYE before April this year.
Sould I have filled out a self assessment this February?
I know some of you will say get an accountant but decided to try and do it myself as I'm not in the VAT bracket and decided my business and accounts would be straight forward. The only thing that baffles me is the PAYE and self assesment part of it, have tried researching it but it just gets more complicated the more I read.Comment
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Originally posted by jsnetman View PostHi,
In a similar position to the initial posting, left permanent employment to go contracting in July 2011, had been paid more than the threshold in previous employment so have not paid myself any formal wages and was looking to register for PAYE before April this year.
Sould I have filled out a self assessment this February?
I know some of you will say get an accountant but decided to try and do it myself as I'm not in the VAT bracket and decided my business and accounts would be straight forward. The only thing that baffles me is the PAYE and self assesment part of it, have tried researching it but it just gets more complicated the more I read.
PAYE is totally separate, and relates to any wages you pay yourself. You need to set up a PAYE scheme, which you can do online here: HM Revenue & Customs: Register as an employer by email
Regarding the VAT, you may want to consider registering even if you're below the bracket as you can then benefit from the Flat Rate Scheme.
If it's your first year and you're confused about the basics then it's worth talking to an accountant. By all means do it all yourself in the second year if you're confident, but it's handy to get a grounding first and use that year to gain as much knowledge as possible from them. That way you'll know about deadlines, filing, taxes, expenses, IR35 etc when you do it all yourself.Comment
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Originally posted by jsnetman View PostHi,
In a similar position to the initial posting, left permanent employment to go contracting in July 2011, had been paid more than the threshold in previous employment so have not paid myself any formal wages and was looking to register for PAYE before April this year.
Sould I have filled out a self assessment this February?
I know some of you will say get an accountant but decided to try and do it myself as I'm not in the VAT bracket and decided my business and accounts would be straight forward. The only thing that baffles me is the PAYE and self assesment part of it, have tried researching it but it just gets more complicated the more I read.
'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by jsnetman View PostHi,
In a similar position to the initial posting, left permanent employment to go contracting in July 2011, had been paid more than the threshold in previous employment so have not paid myself any formal wages and was looking to register for PAYE before April this year.
Sould I have filled out a self assessment this February?
I know some of you will say get an accountant but decided to try and do it myself as I'm not in the VAT bracket and decided my business and accounts would be straight forward. The only thing that baffles me is the PAYE and self assesment part of it, have tried researching it but it just gets more complicated the more I read.
Also an accountant can advise you on what salary to take and dividneds as some good sound tax planning advise is vital in the first year.
An accountant could also register you with HMRC for PAYE, VAT and self assessment if you are not registered.Comment
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Originally posted by jsnetman View PostHi,
In a similar position to the initial posting, left permanent employment to go contracting in July 2011, had been paid more than the threshold in previous employment so have not paid myself any formal wages and was looking to register for PAYE before April this year.
Originally posted by jsnetman View PostSould I have filled out a self assessment this February?
Originally posted by jsnetman View PostI know some of you will say get an accountant but decided to try and do it myself as I'm not in the VAT bracket and decided my business and accounts would be straight forward. The only thing that baffles me is the PAYE and self assesment part of it, have tried researching it but it just gets more complicated the more I read.Comment
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Originally posted by jsnetman View PostSould I have filled out a self assessment this February?Comment
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Originally posted by Kugel View PostSA in FebruaryComment
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