Tax Returns Due On Monday

[vokf 0]

Ok guys...

just a reminder - if you've not submitted your returns YET... the deadline in Monday 31st.

 

This does not take long if you have a record of expenses (music, gear, traveling etc), and gigs (income).

 

Profit = Income - Expenses

 

You will pay 25% or above tax on your profit, hence the need to keep good records of your expenses...

 

 

If you work full-time (like me), your personal allowance will be swallowed by your salary.

If you DJ full-time, then you can use your personal allowance (approx £4K) towards your DJ income,

 

At this point in time, if you've not submitted, and you are really stuck then call the Inland revenue for their free advice. Next year... consider hiring an accountant!

 

From my end, I'm 80% there.... I should have submitted in April 2010.... lol 2011, will see us both using an accountant!

 

Jas

Edited January 27, 2011 by vokf

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The personal allowance for 20010-2011 is £6475, not £4000 and the basic tax rate (up to £37,400) is 20%, not 25%!

 

There may be extra N.I. to pay. I'm not sure about that.

 

Above £37,400 and up to £150,000 income tax is 40%. Above £150,000 it's 50%.

[gadget 0]

3 line accounts "fun"... I always mean to do this earlier in the year, but it always gets left to the last minute... !

[vokf 0]

The personal allowance for 20010-2011 is £6475, not £4000 and the basic tax rate (up to £37,400) is 20%, not 25%!

 

There may be extra N.I. to pay. I'm not sure about that.

 

Above £37,400 and up to £150,000 income tax is 40%. Above £150,000 it's 50%.

 

I left it deliberately vague... no one should be relying on forums for tax advice :-)

 

Sadly, with private healthcare, and salary over £37.4K, I'm paying 40% on my profits.. :damn:

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I left it deliberately vague... no one should be relying on forums for tax advice :-)

 

Sadly, with private healthcare, and salary over £37.4K, I'm paying 40% on my profits.. :damn:

 

Believe it or not, the 40% tax band is more generous now than it once was. When I was last employed (1991) I was in the 40% bracket on a salary of £28000. Adding the company car made it even worse!

[gadget 0]

Its 37.4K *after* you've used up your tax free income. So you need a total income of £43,875 (after all expenses and deductions and all that) before you start paying 40% rate... Meep !

 

I often wonder if it was worth going as a partnership and preventing as much of the 40% tax rate as possible. I'm sure an accountant would advise the best for everything.

 

Cheers,

 

David

Edited January 28, 2011 by gadget

[Gary (GDK) 0]

I done mine last May!

[Robster 0]

I leave all that to usher spiby & Co my accountant ..how easy is it to do yourself ? i am not very confident about these sort of things so i feel the £250 for there services i pay is good value and allows me to sleep at nights

[Gary (GDK) 0]

First time I did one I went to my local tax office and got a bit of free advice.

 

Now I feel confident enough to do myself..

 

Although I have learnt from this thread... I put my music downloads etc in expenses...

 

But not that it really matters a great deal due to declaring under £25000 and not having to break down expenses.

[Raymilkybarkid 0]

I Too left it to my accountant to file for me Simples

[deejaymitch 0]

Any of you who see my facebook updates are probably aware that I did my return this week.

 

Like so many of us with good intentions, I always mean to do it earlier in the year. I always mean to put enough away each month to cover the bill etc etc. But once again I've made the whole process more painful for myself than I needed to.

 

I'm ok doing the actual return as I studied finance and accountancy for many years and have a lot of the same qualifications the average accountant would have, but if it's totally alien to you, it's probably better to leave it to the pros.

 

As we approach the end of the 2010/11 financial year I'm once again promising to do that return much earlier, but who knows. In fairness, based on my actual earnings as a DJ after tax and other expenses, I'm seriously considering jacking it in. Enquiries and bookings are down, but I'm still committed to offering what I deem to be reasonable prices to customers (no comments please, that's a whole other argument), so ultimately my "take home" pay for working unsociable hours is not great. I might be better off stacking shelves overnight in a supermarket twice a week. A lot to consider.

[Dukesy 0]

In fairness, based on my actual earnings as a DJ after tax and other expenses, I'm seriously considering jacking it in. Enquiries and bookings are down, but I'm still committed to offering what I deem to be reasonable prices to customers (no comments please, that's a whole other argument), so ultimately my "take home" pay for working unsociable hours is not great. I might be better off stacking shelves overnight in a supermarket twice a week. A lot to consider.

 

The whole tax system in the UK is very unfair to small businesses which are either starting up or barely making a profit. In some other countries the amount which you earn before you become liable for tax applies to both Full Time and Self Employment occupations, so if this fairer system happened in the UK - you could earn £6475 from your day job and upto £6475 from your self employment activities before either were liable for tax. Then again, other Countries don't have our Government :pro:

 

Wasn't the personal allowance going to be raised slowly to a £10,000 ceiling anyway, when is that happening? its gone very quiet on that particular promise!

 

Either way, there should be some form assurance in place that a business, especially one which has only just started should be able to make a minimum figure of healthy profit before paying anything to the I.R - at the moment, if you work for somebody else and your part time business made just £5 a year profit, you'll still pay tax on it. Not surprising that so many are calling time, when their profits sag

 

Lets face it, there is no incentive to start a business in this country, or be enterprising and run something on the side in order to supplement low earnings from a daytime occupation. Even if you only make £1000 profit in a year, then if you have a full time Job you have to dig deep into those earnings and find £200 out of that £1000 exclusively for the Tax Man.

 

I do often wonder how many DJ's are currently looking woefully at the figure in their 'profit' field of their self assessments and how that figure compares with the National Minimum wage, I suspect that quite a few, especially in these years of the recession, will find that they could probably pack it in and take a second part time job, have half of the stress which comes from being self employed and actually come away with more than the figure they were making from DJ'ing

 

This site is quite an eye opener, you fill in a few basic questions, and it tells you the earnings you should have coming into the household every year, just to maintain a minimum standard of living.

 

http://www.minimumincome.org.uk/

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Wasn't the personal allowance going to be raised slowly to a £10,000 ceiling anyway, when is that happening? its gone very quiet on that particular promise!

 

 

In the tax year 2011-2012 the basic personal allowance rises from £6475 to £7475.

[MintyDave 0]

The best £128.35 i have spent this year was on an accountant. I tried diy once and never again.

 

I wish we still had the 10% tax rate for whatever threshold it was.

[vokf 0]

The best £128.35 i have spent this year was on an accountant. I tried diy once and never again.

 

I wish we still had the 10% tax rate for whatever threshold it was.

 

Just filled mine. I Zip up the spreadsheet and PDF copy of the return, and its saved on my DropBox.

As I'm using DJEP since May, my 2010-2011 return should be quicker to calculate...

 

But, I've seriously got to get my butt in gear and work on this sooner, and not 1 week before the deadline.

It looks like I'm not alone from seeing others on Facebook, but it doesn't help my stress levels! lol

 

Enjoying a well deserved cuppa now! lol