End of tax year question

[firehawk]

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.

[minstrel]

If you are talking about Corporation Tax for your business then it is roughly 20% of profits this year (rising to 21% and 22% in subsequent years).

You need to pay this 9 months after your company year end.

If your accountant does all your taxes for you why don't you ask this question to them? That's what you are paying them for after all isn't it?

From the phrasing of your question it sounds like you might be confused anyway.

I just had my Q2 tax for 2008 and thats been paid

What do you mean by Q2 tax for 2008? If you are in your first year of trading this can't be Corporation Tax. Perhaps you are confusing PAYE/NI or VAT payments?

Might be worthwhile you reading some of the first timer guides. All the information is out there already...

[firehawk]

Thanks, this is my first year of trading...and also dont expect to make profit.

I should ask my accountant yes but been kinda fobbed off from them recently....in the process of changing my accountant after the end of year tax.

anyway, i have followed their quotes/estimates for the %age of home pay take...and the rest left in the business account, which is what I have been doing but still worried about how much the end of year tax would come to.

indeed, the Q2 is I believe the VAT stuff....

[Sockpuppet]

You need an accountant and fast.

You cannot work out the tax owed by doing take home % calculations.

Go to accountants with reciepts and let them do end of year. They will then tell you how much tax to pay.

HTH

[firehawk]

I DO have an accountant..... the reason im asking here as well as the accountant is so im sure. I just feel they are holding back something, but i just feel as if I dont have enough funds in the account

[basshead]

Just making sure that you understand that the personal tax year that ends on 5th April, is nothing to do with your company year, right?

[firehawk]

Just making sure that you understand that the personal tax year that ends on 5th April, is nothing to do with your company year, right?

hmmm ok?

well, whatever the accountant has told me, ive done. So basically any form of tax payment that is needed to be paid to HMRC is paid via the business account, which has the funds....

[Alan @ BroomeAffinity]

Firehawk, if you want to PM me I can have a look over your figures and see if you are well enough provisoned.

[firehawk]

Thanks, its much appreciated - unfortunatly I can't PM due to account restrictions - post count probably

i will enable emails on my account....then if you can, email me via this site.

[ratewhore]

Thanks, this is my first year of trading...and also dont expect to make profit.

I'm assuming you're not an IT contractor then...