Right , a question for ya all, If I allready have a job and make £30 000+ a year, then as that job is shift work , on my days off I wanna set up my own buisness(alarm and cctv installation), where I'll pay my tax bill at the end of the year and claim back expenses etc, will it all go on top of the money I've allready made through my main job.
Say I make £10 000+from my buisness on top of my £30 000 this will make me pay 40% tax yeh?
Do ya get me?
Andy

 

aint got a clue about the tax, but do you want to give me a job

 

Yes you would have to pay tax on it BUT if you are smart and structure it as a limited company you could pay yourself dividends which dont attract NI, or you could make payments to your spouse as a director and use their allowance, or you could put it taxfree into pension, and you could write anythign spent off against taxes.

I doubt you would pay more than 15-20% in reality.

 

someone has allready told me to make my wife a secretary, pay her £50 a week, If it's limited, what's the other benefits?

 

I'll post when i get into work mate, running a bit late, but there are LOTS of ways of avoiding tax legally, even stuff like you and the wife both have a company phoen which is a NON taxable benefit.

 

i belive you have to pay ni on your dividends now they stop that loop hole and yes you whould have to pay 40% tax on the profit once you go over the next tax group unless you can put the buisness in your wifes name, ect. I would go talk to an acountant

 

Tax deductable items:
PC for work use
Phone for work or private
Any genuine tools you need for the job etc
Use as home as an office
Travelling (about 40p a mile tax free if you use your own car)

Any of those items you wont pay any tax on at all

Other things to note are that you can have your wife as a director perfectly legally, she doesnt have to do any work for the company at all and can be paid money in dividend form which will be taxed a whatever rate she is on (23? or whatever) and will attract NO national insurance contributions.
(providing your arent an IT contractor or similar caught by IR35, which is what dunccoss is getting confused with i suspect?)

 

Could I claim my garage I've just built is where I store my tools and equipment, and as there's a phone in there, it's my office?My wife is a Nanny and only, officially, makes £500 a month, so if I had here as my director it'd be ages before she hit £40k? Yeh?