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    (Original post by brokenangel)
    yup it sucks atleast you aint that guy that pays enough in tax to support a NHS hospital yet isnt entittled to NHS care
    Haha, I bet he only gets one vote as well.
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    (Original post by Elipsis)
    Ok, i'll do that. Out of interest will they help if they don't approve of the business?
    I didn't think about that haha. Ermm, research online then? That's the best advice I can give.
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    (Original post by Kemik)
    I didn't think about that haha. Ermm, research online then? That's the best advice I can give.
    Will you be my corrupt accountant?
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    (Original post by Elipsis)
    Ok, i'll do that. Out of interest will they help if they don't approve of the business?
    As long as you pay them then I imagine so.
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    (Original post by Elipsis)
    Will you be my corrupt accountant?
    No. I'm probably too expensive for you :p:
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    (Original post by Nick_000)
    I'm sure you pay some form of taxation if the person dies within ten years of a property transfer or something?
    I think the loop hole is, say my nan's got a bungalow she sells it to my dad say for like a fivva, so you got £150,000 bungalow for a fivva. No tax i don't think.

    Also when your grandparents get old its best to get rid of their assets, basically put them in someone elses name because if they get taken to an old peoples home or whatever they will sell the assets and basically rape you of inheritence to fund staying in the old peoples home. If they have no assets they just use your pension and the rest is paid by government.

    My dads an accountant.
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    (Original post by Elipsis)
    I am in the process of starting up a business, here is just a quick summary of all the tax I will be paying:

    Import tax: 22.5%
    VAT: 17.5%
    Corporation Tax: 30-40%
    Income Tax: 20-50%
    NI: 11%

    How ridiculous is that? I am paying tax on the same product like 4-5 times... the government really screws you from every angle.
    You only pay Corporation Tax if it's a Limited Comapany. If you're a sole trader or Partnership, you don't pay Corp Tax.

    Corporation Tax is only 28% on profits over £1.5m. The small Companies rate is 21%

    'Import Tax' (sic) is not a flat rate of 22.5%

    VAT is 15% until December '09

    The upper rate of Income Tax is 40%, not 50%. Income Tax is only payable if you are on PAYE. If you are a Ltd Co. Director being paid by interim dividends, you don't pay Income Tax as the dividends have already been taxed by Corp Tax

    Having had a few run-ins with HMRC due to thinking we knew what we were doing, I'd suggest you have a long talk with a small business advisor.
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    (Original post by imhiya)
    you have to just pay the difference..right?:woo:
    Well yeah, but your sales should be a lot higher than your expenses. Plus it also has to do if you're VAT registred basically making sales over £69,000.
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    (Original post by simeon)
    You only pay Corporation Tax if it's a Limited Comapany. If you're a sole trader or Partnership, you don't pay Corp Tax.

    Corporation Tax is only 28% on profits over £1.5m. The small Companies rate is 21%

    'Import Tax' (sic) is not a flat rate of 22.5%

    VAT is 15% until December '09

    The upper rate of Income Tax is 40%, not 50%. Income Tax is only payable if you are on PAYE. If you are a Ltd Co. Director being paid by interim dividends, you don't pay Income Tax as the dividends have already been taxed by Corp Tax
    Thanks for clearing that up for me.
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    (Original post by Tory Dan)
    Oh you lefties you do make one chuckle!
    Easiler than thinking is it? :p:
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    (Original post by Elipsis)
    Thanks for clearing that up for me.
    Just don't like seeing people go into a venture unprepared.

    We though we could wing it and nearly came a cropper.

    Fortunately we got a good accountant who sorted everything out for us before it was too late.
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    You'll only pay VAT if you're turning over more than £60,000 PA.
    Is this likely for a brand new business?
    Either way, the customer pays it.
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    Yeah thats the advantage of not being VAT registered you can sell your items for cheaper, but then again if you're buying loads of items with VAT on them you won't be able to claim it back(i think)
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    (Original post by Hugh-Jackman)
    Yeah thats the advantage of not being VAT registered you can sell your items for cheaper, but then again if you're buying loads of items with VAT on them you won't be able to claim it back(i think)
    Basically, if you're VAT registered you claim the VAT back from the stock you've bought and then add 15% (17.5% normally) to your prices and send the difference to the tax man. There is a fixed rate you get charged by HMRC but I'm not that clued up on VAT. It's really why you need to see a business advisor. I'm more of a corporate tax guy.

    Thanks for the rep btw Elipsis.
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    (Original post by Hugh-Jackman)
    Well if your sales are more than your expenses you have to pay VAT.
    Nope.

    Our income for example is all from services in the United States, so it's not liable for VAT. Our turnover is vastly over £68,000 p/a but it's 99% VAT exempt, so we don't have to register for it.

    It's a shame I can't register really.. It'd be a bit of a pain having to charge it to EU/etc customers and not non-EU customers, but I'd get 15% off all business expenses which'd be pretty cool ..

    To the threadstarter, you don't need to pay all those taxes.. For a start you'd be mad to pay yourself all company profit.. You're better off re-investing as much as possible to further improve the profit. The income tax just isn't worth paying on more than you have to. You can also avoid income tax to an extent by paying yourself in dividends rather than a routine wage.

    If you're starting out, do you really need to register as a company too? Wouldn't you be better off as a sole proprietor? You've completely avoidign corporation tax then, leaving you only to pay income tax on any profits.. If it's a risky business it's not worth the liability though of course.
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    Yeah i know how VAT works, i work for a chartered accountants. I was just saying the advantages of being VAT registered and not VAT registered.

    Most of what you're taught is bollox anyways, best is getting on the job experience because you don't pay an accountant to do everything by the book, you pay them specifically not to do it by the book to save you more money.
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    (Original post by Nick_000)
    I'm sure you pay some form of taxation if the person dies within ten years of a property transfer or something?
    I thought it was 7 years? But yes, you're right that if the person dies within a certain time frame then you can be eligible for the tax hit.
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    (Original post by mituozo)
    Nope.

    Our income for example is all from services in the United States, so it's not liable for VAT. Our turnover is vastly over £68,000 p/a but it's 99% VAT exempt, so we don't have to register for it.

    It's a shame I can't register really.. It'd be a bit of a pain having to charge it to EU/etc customers and not non-EU customers, but I'd get 15% off all business expenses which'd be pretty cool ..

    To the threadstarter, you don't need to pay all those taxes.. For a start you'd be mad to pay yourself all company profit.. You're better off re-investing as much as possible to further improve the profit. The income tax just isn't worth paying on more than you have to. You can also avoid income tax to an extent by paying yourself in dividends rather than a routine wage.

    If you're starting out, do you really need to register as a company too? Wouldn't you be better off as a sole proprietor? You've completely avoidign corporation tax then, leaving you only to pay income tax on any profits.. If it's a risky business it's not worth the liability though of course.
    Yeah but for your usual buying and selling companies it would say 100,000 in sales so 15,000 Vat, say expenditure is 50,000 would be 7,500 so you'd pay 7500 VAT.

    I just whack information in on SAGE, i don't do actual accounts yet though or have a great understanding of it.

    Does sound weird that the OP would be going for VAT registered and not sole trader though.
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    (Original post by The Referee)
    I thought it was 7 years? But yes, you're right that if the person dies within a certain time frame then you can be eligible for the tax hit.
    What if the person that has died sold the property for peanuts to her son/daughter???
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    (Original post by Elipsis)
    Selling a 'chemical' online and face to face.
    Are you selling things like salvia? If you're good at chemistry you should create a chemical similar to LSD but one that hasn't been legislated against.
 
 
 
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