tag:blogger.com,1999:blog-2170981338945747646.post2300556294155326283..comments2024-02-06T07:57:54.467+00:00Comments on underdogs bite upwards: Taxing times.Leg-ironhttp://www.blogger.com/profile/04932361799889315359noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2170981338945747646.post-10923889603976072822012-02-03T00:34:57.741+00:002012-02-03T00:34:57.741+00:00 The online one isn't too bad once you learn t... The online one isn't too bad once you learn to have everything ready before you start. Well, my accounts are simple, as a sole trader. I don't bother claiming anything for using an office in my house, for broadband or anything like that because working out how much heat/light/internet applies to work is more trouble than it's worth. I also have no business vehicles or depreciating capital items so it only takes an hour to finish the form.<br /><br />I'd do it in April if it wasn't for this 'tax on account'. My income is variable and random. I might make ten grand on a project that takes six weeks, I might then have no other income for months. I don't know when the projects will come so I can't realistically project my income more than a month or two ahead.<br /><br />At the end of January I can be confident that if there is no project running, there'll be no more income that tax-year. If one was proposed tomorrow it would take a couple of weeks of meetings, then ordering in the materials, doing the project, writing it up and sending the invoice. By the time all that's done it will be definitely after April 5th so for this year, I know exactly how much earnings I've made (not very much).<br /><br />If I were to get a project tomorrow that they wanted done by the end of February and they wanted to pay me so it was off their books by April 5th, that would pose a problem because it would mean I'd set the payment on account too low. Yes, they would fine me for that so I would insist the company send the cheque on April 5th so it's off their books but not on mine. Or refuse the project, meaning the taxman won't get his 30% but also won't be able to fine me. For a short project like that, the fine could well be higher than the amount I'd make.<br /><br />Tax on account forces us to skirt the deadline. If it wasn't for that we could have those forms in in plenty of time.<br /><br />So yes, if someone underestimated their income because they weren't savvy enough to work it out, they would indeed be penalised for not being too clever.Legironnoreply@blogger.comtag:blogger.com,1999:blog-2170981338945747646.post-21605722153042331642012-02-02T13:16:19.938+00:002012-02-02T13:16:19.938+00:00Luckily I've never yet had to fill one out. Th...Luckily I've never yet had to fill one out. They sound horrendous. Not to mention a complete rip-off. And what if someone less intelligent than you is filling one in and their guesswork about projected earnings is way out of the ball park. Do they get a massive fine for simply having a lower IQ?The Poet Laura-eatehttp://thepoetlaura-eate.blogspot.com/noreply@blogger.comtag:blogger.com,1999:blog-2170981338945747646.post-88474368951500499572012-02-01T07:08:26.343+00:002012-02-01T07:08:26.343+00:00The UK tax people seem determined to shut down eve...The UK tax people seem determined to shut down every small business in the country.Legironnoreply@blogger.comtag:blogger.com,1999:blog-2170981338945747646.post-244646627122519562012-02-01T05:43:54.880+00:002012-02-01T05:43:54.880+00:00Demanding money you haven't been paid yet? Ar...Demanding money you haven't been paid yet? Are the UK tax people working out of some bizarre self help book? Something with a title like "How to truly fuck an economy in three easy lessons".<br /><br />I thank the gods of inspiration for the good judgement Mrs S and I showed in moving to Canada.Bill Stickerhttp://williamsticker.blogspot.comnoreply@blogger.com