Just Thinking .

[Evans Electric]

Sorry Essex  I can't agree with you there .

If you didn't account for the various taxes  ( ie; Overheads )  you'd find you were not getting anywhere ...working at a loss...breaking even ...whatever .

As Stepps says , if its outgoing , its an  overhead .

In my opening post I was trying to point out how , even with a small job,  the government's hand is outstretched for their share. 

A one man outfit  working from home probably has the lowest overheads in the trade. but would still be looking at :-

Depreciation on vehicle

Fuel

Road tax

Insurance

Trade body membership

tools

laundry

Telephone

Staionery

Accountancy fees

Overalls

Plant hire

Calibrate testers

Advertising

Liability insurance

Nat. Ins.

Income tax

Pension

No good thinking I want £30,000 a year profit, clear, in my pocket because that would end up , after tax, as £ 24,000   ( Simplified of course)  

 

[Sharpend]

It can't be an overhead ask many a reputable celebrity they seem to know how not to pay it?

 

[Evans Electric]

Surely we all want know how much is left at the end of the year , jangling in our pockets .

Look I did all that work , all those jobs , all that heartache and I've got this much in my pocket .

Not usually a lot to be honest ,  out of your share goes the mortgage , all the food , school uniforms , holidays , don't even think about fags & booze.

I believe that if you take, say, a skilled or semi skilled manual worker, directly employed, well out of the National Minimum Wage, married, mortgage, 1 point 2 children,  almost every penny would still be accounted for .

Government would have already had their hand in his wage packet for the Income Tax , Nat. Ins,   then every time he buys anything  Ooops another 20% VAT also .        ( What did they say when VAT was introduced @ 8% , " It will never excede 10%)

I've forgotten what the hell I'm prattling  on about now .  :C

It can't be an overhead ask many a reputable celebrity they seem to know how not to pay it?

Usually by leaving the country Sharpie .

Back in the day the Labour Gov. was driving loads of big earners out .  But they were taking their enterprising skills with them.

I think The Beatles, at one stage, were paying 99p in the £  tax .  

 

[Murdoch]

Sorry Essex  I can't agree with you there .

If you didn't account for the various taxes  ( ie; Overheads )  you'd find you were not getting anywhere ...working at a loss...breaking even ...whatever .

As Stepps says , if its outgoing , its an  overhead .

In my opening post I was trying to point out how , even with a small job,  the government's hand is outstretched for their share. 

A one man outfit  working from home probably has the lowest overheads in the trade. but would still be looking at :-

Depreciation on vehicle

Fuel

Road tax

Insurance

Trade body membership

tools

laundry

Telephone

Staionery

Accountancy fees

Overalls

Plant hire

Calibrate testers

Advertising

Liability insurance

Nat. Ins.

Income tax

Pension

No good thinking I want £30,000 a year profit, clear, in my pocket because that would end up , after tax, as £ 24,000   ( Simplified of course)  

ha ha ha - how many SE people are paying into these?

 

[Sharpend]

Depends what you class as your pension?

 

[Essex1]

Tax is not an overhead.

Profit before tax = gross

Profit after tax = net

Nothing to do with overheads and any accountant would shot that right into touch. If it was an overhead you could offset it against your tax. Like to see you try that one. Haha.

 

[Sharpend]

Tax is not an overhead.

Profit before tax = gross

Profit after tax = net

Nothing to do with overheads and any accountant would shot that right into touch. If it was an overhead you could offset it against your tax. Like to see you try that one. Haha.

What you don't put your tax payments down as a business expense?..

 

[Essex1]

What you don't put your tax payments down as a business expense?..

I stopped since the court case.

 

[steptoe]

I stopped since the court case.

You need a better accountant,    

 

[Doc Hudson]

Strictly speaking tax is not an overhead as overheads are the costs of producing or providing your goods and servies. But as a self employeed person when trying to budget and cost your work against how much you need to earn to cover your basic living costs then Tax is a signiicant figure that needs to be included in the calculation.  As has been said already the average employed  person basis thier family budget on take-home after tax, not gross salary. 

If you are self-employed, you will take drawings from the business. Whilst, strictly speaking, drawings are an advance against profit, include them (and an allowance for income tax) as an overhead when calculating total costs.

from,   http://www.shell-livewire.org/home/business-library/accounts-and-finance/financial-forecasting-and-planning/costing-and-pricing/

Doc H.

 

[Evans Electric]

Oh well I'm casting them off  them slowly ,  not paid NI  for a good while now ,  de-registered from the VAT club so things are simpler , not too much tax last year , should be nothing this year .