ANYONE NEEDING HELP??? >>TAX RETURNS ETC

[Basement_Studios]

Hi!

We are a firm of accountants/bookkeepers based in the Midlands area, specialising in working with businesses in the entertainment industry.

We run two main types of services for clients;

a) Tax Returns for models, escorts, actors etc., usually based on individuals the fee is between ?100-?150+VAT, to include preparation of accounts and filing of Tax Return.

b) Bookkeeping, Management Accounts, VAT, Payroll and year-end accounts for larger businesses that require more control. Fee varies obviously with size of business, but between ?75-?500+VAT per month. If you have a medium sized business, this sort of services allows you to continue what you are best at, and leaves us to sort your accounts/finance etc.


If I can be of any assistance to anyone, please feel free to get in touch, my email address is rob@basement-studios.co.uk . Trade references can be provided if necessary.

Best Wishes for the new year,




Rob Skinner.

[PKAY]

I need help in paying my bloody (?8K) tax bil. Is this something you can assist me with?

[Basement_Studios]

PKAY

Yeah > you should have gone ltd! Because that it a bloody high tax bill, and I'm sure you would have saved a lot via a ltd co.

Ta,

Rob.
rob@basement-studios.co.uk

[PKAY]

My accountant is really against me going Ltd, can't work out why....

[Basement_Studios]

not sure why!

If you email me a rough profit figure for your last year to rob@basement-studios.co.uk I could tell you what your ltd co tax would have been.

Regards,


rob

[alicia_fan_uk]

But beware that when you go ltd, you are likely to be taxed twice.... once on profits, and once on any salary/dividends....

[rgb]

My accountant, who's a qualified chartered accountant with 30 years experience, has always told me there's no advantage going ltd unless you need the limited liability that it gives you - and he's told me the same thing on years when I've made a six figure profit and also years when I've made a loss. The tax man will always get you one way or another.

[Basement_Studios]

reply firstly to alicia fan uk (ref double taxation).

e.g. your make 60,000 net profit ltd co, taxable by company @ 19% = ?11,400.

Personal Tax, say salary and dividends of 50,000;

10,000 of dividends in higher rate (therefore at 30%) = ?3,000. Other distribution (?5,000 salary-minimal tax, ?35,000 dividends).

So total taxation co & personally of ?14,500!

S/Trader

60,000 profits - all taxable. rough calc is ?16,000 plus ?8,000 for next year upfront on poa, therefore ?24,000 payable.....easy to see the tax savings.

This is the simple, quick calcs and does not take into account many other factors, such as benefits in kind and increased accountancy fees.

-----
And RGB, usually a sign of a weak accountant - one that isn't willing to look at ways of reducing your profits/tax >>>no matter how many years experience. Also, very odd you are having such peaks and lows, you sure that your accountant is producing correct accounts? taking into account wip, stocks etc.? This isn't meant offensively, its just quite usually in most trades to have such an up and down business....friendly pointers.


Thanks for the replies.



Rob.

[rgb]

We're getting a bit of topic for a porn forum, but anyway:

You've sneeked 2 little things into that calculation to exaggerate your point. You've included the ?8000 up front for next year into this years calculation which isn't a fair comparison since it comes into the following years tax - it depends how you arrange the start date of your accounting year to optimise that; and the fact that accountancy fees are higher for limited companies. There are also differences in national insurance contributions.

At there end of the day there is very little difference in tax liability between sole trader and limited at this sort of profit level.

And yes, the business I was in before was very unusual.

[alicia_fan_uk]

I agree with rgb - too much tax talk, not enough porn!

Rob, you obviously know your stuff - I certainly want to get into any debate with you re tax issues, and please do not think I was having a go at your professional credentials. To anyone else bothering to read this thread (why would you!?), Rob does have the main issue addressed - avoiding tax to minimise the amount payable, but not evading it. Sign of a good tax accountant, methinks.

I would only point out that all divs now paid to non-corp s'holders must now suffer at least 19% tax (thus closing a loop-hole that previously existed), of a "tax-free" dividend income in the lower/basic bands (ie to cmbat all the IT consultants who "ltd"'d and got 0% tax treatment..)

Anyway, as someone much wiser than me once said - your tax bill isn't what the rules and regs say....it's whatever the hell you and the revenue agree it to be....

I am now silent on this issue, as I have a date with an Alicia DVD very shortly...

alicia_fan_uk