I am paying too much tax

[kellycell]

Hello,

I just received my draft accounts back from my accountants. I feel that the tax that they think I should pay is way too much compared to my other colleagues. So my other colleagues earn £100 per day more than I do, and their draft accounts came to be 6K less than mine. What could be the issue?

Many thanks.

[Olly]

There's a special tax that accountant can apply in certain circumstances.
"Muppet tax" as it's known is quite complex and often if you try to dig a bit a deeper and challenge it then you end up with higher tax bill not lower....

I'd leave well alone if I were you

[xoggoth]

Bit short on details for serious answers. Corporation tax will be 20 to 21% of the profit depending on what your company year was.

Haven't you got a sheet at the end giving some details of what has been accounted for in the profit? Otherwise, you must know what expenses etc you sent the accountant. Profit is invoices - (gross salary + company NI + expenses + any depreciation on computers etc). All excluding any VAT.

[Fred Bloggs]

Hello,

I just received my draft accounts back from my accountants. I feel that the tax that they think I should pay is way too much compared to my other colleagues. So my other colleagues earn £100 per day more than I do, and their draft accounts came to be 6K less than mine. What could be the issue?

Many thanks.

Probably expenses claims particularly if they're making very large contributions into a Ltd Co funded SIPP or travelling a long way every day and you aren't. Of course, they could just be winding you up.

[MarkOD]

Also, if you're a genuine business what on earth has your colleagues pay got to do with yours. you're a contractor, you can't start crying to mummy because your friends have got something better than you

[Mozart]

Also, if you're a genuine business what on earth has your colleagues pay got to do with yours. you're a contractor, you can't start crying to mummy because your friends have got something better than you

Again, why so much venom on these forums??? Kelly, just pay the tax and at the end of the year, when you submit your tax return, if you have overpaid, you will get it back, your colleagues may have underpaid and will have to stump up. Leave it be for now.

[northernladuk]

What everyone else said to be honest. Judging by the basic information in your question I would guess your colleagues have a much better grasp of their finances and have done all they can to reduce their tax liabilities. There is always the chance they are shooting from the hip and over claiming so will be in trouble when they get caught but again that is none of your business.

Get some books out, read the contractor forums/websites and gen yourself up with what you can do. You can't trust your accountant to hold your hand. It's up to you to maximise your returns.

[ratewhore]

Why do you and your colleagues know so much about each others finances?

[cailin maith]

Also - if it's your first year you may be making payments on account for next year which will prob be the cause of the difference between yours and your colleagues tax, esp if they have been doing it for a while.

[xoggoth]

northernladuk is right. Most accountants in my experience aren't very proactive, they just answer any questions you ask and deal with what you send them.

I probably lost out a couple of K on petrol on a company van I never knew I could claim for before I started taking a more active interest. The accountant knew I had a company van but never asked why I wasn't providing petrol costs. Do a bit of research, starting with booklets 490 and 480 from HMRC site.