Random Irritations

SwingsitlikeHogan

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Tax allowance in the 2018/2019 tax year was £11850, not £12500. It's £12500 for this tax year to April 5th.

My self assessment tax bill was £1300 and I earn a reasonable amount as a contractor. But it's easy to say the system is warped when you don't see the £21,000 Corp tax bill and the £24500 VAT bill on top of that. Plus paying my own pension, sick pay, holiday pay and IT and everyday costs the system is about to become more warped IMO with the off-payroll regs about to bite hard. Absolute shambles and the governments lack of simple economics at the heart of the shambles as always.

At that income level, aside from allowable expenses if any are applicable, will have few further allowances I would think.
I can understand that - but as far as my wife is aware my wife’s friend pays neither VAT nor corp tax. Maybe she does...we will maybe find out. Thinking my son might be able to set some costs against his bill as he works from home (gas, electricity, internet and phone) and he has business related travel expenses (Bus and train)
 

GreiginFife

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I can understand that - but as far as my wife is aware my wife’s friend pays neither VAT nor corp tax. Maybe she does...we will maybe find out. Thinking my son might be able to set some costs against his bill as he works from home (gas, electricity, internet and phone) and he has business related travel expenses (Bus and train)

It all depends on the type of worker he is, the type of work he does and how he is set-up. Not all "self employment" is the same. Your sole trader friend, I would be astounded if they weren't subject to corporation tax and VAT if they are running a business with, what sounds like, good turnover.
I claim a £4 per week working from home allowance, but that is as a Limited Company contractor. Travel and subsistence rules vary but might be claimable if he travels to and from a temporary workplace.

Edit to clarify, I work from home more often than once per week which is why I can claim the allowance. Once or twice a month from home does not count as far as my accountant advises me.
 

Pathetic Shark

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The silly cow (if I can still use that word from the PETA thread) from Liberty who was more concerned about the legal rights of dangerous fundamentalists being released from prison early. Please can we arrange for them to live next to her if they are let out?
 

Wolf

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Lord Tyrion

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Meanwhile my Mrs speaking with a friend yesterday - friend is a sole trader in healthcare provision - earning good money (hubby has a good trade but not a mega earner) - boasting yesterday of her self assessment tax bill being only £900...wtf (sorry).

Meanwhile Mrs Hogie's friend drives her big German car last week to the store to spend £5k on new furniture - to be delivered before her kids get out of private school prior to going to the Caribbean on summer holidays. I kid you not. My son asks how can they afford that. Well just paying £900 in income tax helps...when he is paying £500.

Acceptance and forgiveness are sometimes tough. My wife is disgusted with her friend. Anyway - she is going to ask her friend how my son can reduce his tax bill ?

The other alternative is that they are not being honest with the taxman and, so far, have got away with it. Equally, they could be up to their eyeballs in debt. Both options are not uncommon nowadays but personally neither appeal to me. Don't stress about what others do, you can't affect them (y)
 

SwingsitlikeHogan

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The other alternative is that they are not being honest with the taxman and, so far, have got away with it. Equally, they could be up to their eyeballs in debt. Both options are not uncommon nowadays but personally neither appeal to me. Don't stress about what others do, you can't affect them (y)
They arent up to their eyeballs in debt as far as my wife is aware - though their expenditure is bonkers in our eyes...however it’s the income tax. Not even double what my son earning £15k has to pay as he scratches along. And she boasts about it...irritating indeed - of course I could not possibly comment on the alternative you suggest. However...

we don’t stress - we just try and get our son doing the right thing...but my God the boasting irritates my wife hugely...
 

Wolf

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People that actively tell others they will fail or solicit the mindset of negativity towards others goals and achievements. This is something thats really winding me up today and not just irritating
 
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