Just Thinking .

[binky]

true Sharpend, but I also believe simple systems are far more efficent to admin and enforce and therefore harder to avoid, and saves a lot of fees paid to accountants which is further 'non-productive' money that doesn't help the economy grow.

I would love to know the full in and outs of the taxation system, but I'm not sure even the best economists / accountants / civil servants could actually work out what really is going on in the UK

 

[steptoe]

When i last worked out all my costs being self emplyed NOT including diesel and van repayments,  

I had calculated a cost of around £20 every day i work.

I count tax as an expense too,

so it is a lot more than 20£ a day tbh,

although, I do price the business at costing 100£ a week

 

[pewter]

I count tax as an expense too,

so it is a lot more than 20£ a day tbh,

although, I do price the business at costing 100£ a week

I agree

If i use a bit of fuel my days costs can be as much as this which is shocking when i look at it.

£20    over heads

£20    van repayment

£20    diesel

£40    tax

£100  costs for 1 days work

 

[Sharpend]

So as I thought, we're all making millions otherwise we'd be on benefits?

 

[pewter]

The painters and plasterers i know who earn cash and are in the pub by 15:00  are on a good number. ****** all costs except beer.

 

[steptoe]

I agree

If i use a bit of fuel my days costs can be as much as this which is shocking when i look at it.

£20    over heads

£20    van repayment

£20    diesel

£40    tax

£100  costs for 1 days work

holy ****.

£20 diesel a day!!!!!!

I work a 25mile radius, go through about £50 a week,

very seldom much more, unless Ive got a job a couple or 5 hours away,

I couldnt stand £100day costs, my business model simply wouldnt hold it.

but, Im oop north, maybe costing is a lot different down sarf.

 

[Evans Electric]

Something that I always found "interesting"  was , if you look back at my pretend bill ,  you have my bill of £ 120.00   + additional VAT  @ 20% .

But the VAT element is actually a tax upon a tax .......the calculation is made against the net amount AND the income tax element.    

holy ****.

£20 diesel a day!!!!!!

I work a 25mile radius, go through about £50 a week,

very seldom much more, unless Ive got a job a couple or 5 hours away,

I couldnt stand £100day costs, my business model simply wouldnt hold it.

but, Im oop north, maybe costing is a lot different down sarf.

Its not different Stepps  ....just more !!!

I'm not sure if I'm oop north ........I'm certainly not darn sarf!! 

 

[pewter]

holy ****.

£20 diesel a day!!!!!!

I work a 25mile radius, go through about £50 a week,

very seldom much more, unless Ive got a job a couple or 5 hours away,

I couldnt stand £100day costs, my business model simply wouldnt hold it.

but, Im oop north, maybe costing is a lot different down sarf.

last 2 years i have mostly being working local within 5 miles radius. My 30 MPG around town is terrible.

Last week i had the misfortune of having to work in east London which is 35 miles away. I charge £1 a mile to cover costs there and back, i always hope they dont want to pay it so i dont have to do the job.

 

[ProDave]

I'm not sure if I'm oop north ........I'm certainly not darn sarf!! 

You lot don't know the meaning of "oop north"

ALL of you are Darn Sarf.  I even think of Glasgow as in the south. :run

 

[binky]

it is compared to were you are.

 

[figo_rulz11]

The real question is 'how much do you really need to live on?' If we didn't have to contribute to everybody else then how much would you really need?

this! 

 

[Essex1]

This thread is amazing. I have never heard of someone adding income tax to an invoice. Haha.

 

[Evans Electric]

Essex  I wouldn't show it as income tax  but if you looked at the "pretend" job and decided you needed to earn £100 notes from it , its no good charging £100 & ending up with £80 .

I didn't actually work it out correctly in my opening post  ...to bank £100  you need to chage £125 .

Then you do the unpaid tax collecting for HMRC by adding VAT  ( If registered)

Quoting for "proper" jobs  , all overheads are worked into the hourly rate.

 

[Essex1]

No I get that but income tax is not an overhead surely?

 

[steptoe]

What is it then?

Everything and anything I have to pay out is an overhead to me,

If I didn't earn any money I wouldn't need to pay income tax, same as if I didn't go to work I wouldn't need to pay diesel either. 

 

[Essex1]

It is a tax taking into account your profit.

Overheads are something that you choose to spend in order to keep your business running. Income tax is there. You cannot choose it or cut it when times are tough.

 

[steptoe]

You obviously see an overhead as something different from me.

It is a cost of me running my business, therefore it's an overhead,

 

[Murdoch]

It is a tax taking into account your profit.

Overheads are something that you choose to spend in order to keep your business running. Income tax is there. You cannot choose it or cut it when times are tough.

Except, if times are tough and your profits are less, your tax bill is less.

Given that in FY2010 the tax threshold was £6475 and its now £10600 we are paying less! lol

You obviously see an overhead as something different from me.

It is a cost of me running my business, therefore it's an overhead,

hum... I have to disagree with you.

Your business plan for the current year should take into account your direct overheads, leaving you with a "gross" income, against which you pay tax and ni or if limited, tax ni and dividends!

Or have you worked out how much "net" income you needed and worked from there ?

Either way tax and NI is not a business overhead, as I understand it!

 

[Essex1]

You obviously see an overhead as something different from me.

It is a cost of me running my business, therefore it's an overhead,

I disagree. It is not a 'cost' of running your business. It is the tax you pay once you have taken the costs of running your business from your turnover and you see what is left.

 

[Andy™]

its not really an overhead - otherwise you wouldnt have to pay it if you were employed...