Derek ^ ( snipped-for-privacy@miniac.demon.co.uk) gurgled happily, sounding much like they were saying :
Why? Any half decent accountant will do a small businesses accounts for a flat fee - certainly not a percentage of turnover.
You need to get a new accountant and a clue as to basic accountancy.
About 2-3 years ago the IR reduced my allowances by £7,700 because I had a company car. It cost £24k when new and was four years old. That was wrong, I was alerted to it because the accountant's wages clerk phoned me up to say did I know my take home pay was going to be nil that month! The correct figure was ultimately £5,400, a scandalous tax charge on a very high mileage (82k) car worth about the same figure. It was this that alerted me to the troughing that was going on out of my pay, we did as a result, make changes along the line you suggest.
In Holland my counterpart there tells me the government won't allow that, If he takes a low pay and draws dividends the IR charge him income tax on salary he hasn't had. I'm sure I heard something similar is on the cards for here.
No I don't. I took the car out of the business (reason as above). Since when has a company been able to recover VAT on new vehicles BTW?
To achieve the same pension I have to increase my contributions to the scheme. I might not be able to afford that. In that case I just have to make do with a lower pension. As if the performance of the funds isn't bad enough already.
He abolished tax relief on dividends the scheme gets paid. The precise mechanism - I don't know. It's the amount that matters. The pension scheme is a 20 year contract and there are penalties (about 10%) to switch or get out. When I took the scheme out the fund operated in a totally tax free environment, I take exception to Gordon changing the tax basis of my pension half way through the contract.
But the pension itself is taxed when it is drawn. But yes at least I haven't paid income tax on the money he lifts out of my scheme
Plenty, one customer insisted I have GBP 2 million of public liabilty insurance instead of 1. The "extra" cost about the same as the value of the contract which I still had the cost of fulfilling :(
The way you put it seems hardly worth his while GB collecting it.
I was like that 'till I saw what was going on.
That's what Gordon wants.
DG
Correct.
The government has taken it and given it to somebody else to spend.
Yes I'm not arguing the money's going out of the economy into a black hole. Just that the government takes it away from me/my company and spends it.
Over more than 1 tax cycle that *might* be so (I still can't see it). Though be aware the example was illusrating the effect of the total tax take on say 500 quid inc vat I bill out, converted to spendable personal money, and then what happens when that money is spent with a business identical to mine. All the spending is personal and VAT can't be recovered.
Not if you run the car as a private car & claim the business miles. (I haven't been recovering it anyway).
That's one figure for the whole of the country, it's about what I'd expect, it has to be some sort of average. It's just that I'm at the opposite end of the spectrum to people such as the 2 part time secretaries I employ for 20 hours/ week each which skew the distribution. I'd be interested to see the tax free day calx. applied to the modal salary.
DG
Actually, you can IIRC.
If you're not doing so, that's your problem (or your accountants). Is it juat that the sum is sufficiently small that you can't be bothered?
clive
Ok, so you feel that only a zero tax tate would do. So the complaint isn't about VAT on fuel, it's that government exists at all? I'm not really interested in arguing that one with you - there's little point.
clive
Derek ^ ( snipped-for-privacy@miniac.demon.co.uk) gurgled happily, sounding much like they were saying :
Fine. So you pay yourself 40p/mile, tax-free.
40p for 10k, then 25p.
Main reason for me losing the volvo - costs more than that to run.
Can you not just claim actual costs, like straight line depreciation over 4 years (25%/year), and then just actual costs for everything, claiming interest payments as well, etc etc?
Tim S Kemp ( snipped-for-privacy@timkemp.karoo.co.uk) gurgled happily, sounding much like they were saying :
Yeh, I know.
The way you're reputed to drive, that's probably just the petrol and tyres...
AstraVanMan ( snipped-for-privacy@Whataloadofforeskinbollocks.co.uk) gurgled happily, sounding much like they were saying :
No.
If you're not a limited company, then there's no prob with putting it through the books. If you're trading through a limited company, then you'll have to start paying co. car tax if you do that...
By way of an example, the IR wanted to reduce my allowances by GBP
5,700 because I had a company car, a 4 year old FIAT Ulysse, with 82,000 miles on the clock which would have been lucky to fetch GBP 5,000.IE they wanted more tax every year for me having the use of the car than I'd have paid *once* if the firm had given it to me outright.
AAMOF I couldn't use the car privately anyway , I'd have had to spend all of Saturday emptying it of my tools, circuit diagrams, and test equipment and stacheing it away, then all of Sunday putting it all back in, so I ran another car of my own. The revenue still wanted their company car tax. :((
DG
heheheh.. unless you get a full sized pick-up truck. Fixed taxed per month - commercial vehicle etc.
Classed as a van. But Gordon's sussed you:
"The maximum tax payable on the use of a company van will therefore increase from April 2007 from £200 to £1,400 p.a., and the employer's Class1A NIC payable will increase from £64 to £448 p.a."
A kewl *seven fold* increase in tax. Just watch second hand values plummet as companies unload them.
DG
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