New Group -- Income Tax Calculations

[shan]

Hi friends

After going through many posts I thought it better to have a group where we can exclusively discuss about the tax we may end-up paying. In perticular it may help a lot of people to chose what kind of job would suit him i.e. Locum or Permanent.

You can visit this group by going to social forum and selecting Income tax Calculation group.

I would appreciate if senior members can contribute their experience here.

Shan

[shan]

Re: New Group -- Income Tax Calculations

Hi All,

Well no one seems to be posting there replies here.

Still as this is the most important as pect of the economic part of our profession I thought it is better we share the details, so that at the end of the day we are winners.

For a starter, if any experienced locum can explain, what would be the minimum tax payable and how to go about doing it if we earn 60k per annum?

I would be great if somone can make an effort to answer the above.

Shan

[Shwampa]

Re: New Group -- Income Tax Calculations

I'm not in the UK but for such a request I'll first check your tax man website first and see if you can find the answer, because, honestly tax and money matters are personal and private. If you make 60K a year I'd want to believe you can get an accountant to do it for you. good luck.

My contribution will be to give you the link: HM Revenue & Customs: Home Page

[shan]

Re: New Group -- Income Tax Calculations

Well thanks for the info.

My point is if we can get an general advice from a person who is already on the path of following certain steps in avoiding paying more tax in perticularly the locums. Just that if senior friends can help, then we juniors can really save on the accountants bills atleast for the initial years.

I do know that once you hire an accountant he will take care of the tax.
Afterall, the whole purpose os being in a community or a forum like this is meant for sharing informations that can help others. Please correct me if I am wrong.

Shan

[johnep]

Re: New Group -- Income Tax Calculations

If you are working full time then become a ltd co. You pay yourself the minimum wage abnd take rest as dividends which are taxed well below PAYE.
johnep

[shan]

Re: New Group -- Income Tax Calculations

Thanks johep for the advice.

Actually I'm still doing my OSPAP & will be in my pre-reg next year. I am not on a student visa & wont need a work permit, so hopefully I'l start locuming once I register.

I'm rather a early planner than do things last moment. I know I'm doing it too early, but knowing things makes you plan properly.

Thanks anyway.

Shan

[johnep]

Re: New Group -- Income Tax Calculations

Ok, but you can start getting yourself prepared. anything purchased to become a locum can be claimed as 'start up costs'.

Open a separate acct. I have a Nationwide Business acct which actually pays me interest, whereas Banks often charge £2 - £5 per cheque.

Get some sort of accounting prog for your cptr (all chargeable). There are free ones on the net. I use Sage Instant accts.

johnep
johnep

[shan]

Re: New Group -- Income Tax Calculations

Thanks again for the advice.

One little doubt. From when exactly can start saving the bills as start up expenses? Is it only from the day you register with the Society or before that. I know it looks silly, but please reply.

Just for your info, I have 13 years of experience in Pharmaceutical Marketing & International Marketing in India. I was Heading the Marketing department prior to coming over here. So, I guess I have fairly good knowledge of using the spread sheets(MS Excel) Will this be fine or do I still need to go in for a software mentioned by you?

Shan

[johnep]

Re: New Group -- Income Tax Calculations

I suspect there is a time limit set by tax people. However, nothing to stop you starting right now and putting in any casual work income and setting expenses against that. When I started I never made a profit for ten years but was able to set my losses against paye from my regular employment. Losses can be accumulated to be offset against your first profit.

Loss making companies are often bought so that the purchaser can set these 'losses' against their tax bills.
johnep

[johnep]

Re: New Group -- Income Tax Calculations

There are many acctng packages based on Excel. May even be one on the opening page of your version. Suggest have a look in your own system first, then perhaps a google on excel accounts.
johnep