Tax,How much

[HOMESAFE]

I am a sole trader and have been trading for two months,How much tax should i be saving to make sure i have enough to pay my tax bill,I know it depends on what i earnt before i set up and this was about 3500 since the begining of tax year,I have been saving at least 25% of each job and then paying myself a wage each month.Just wondering really as i am doing a rewire next week and could do with some help for 1 day and trying to see if theres enough in the job to cover it,Jobs 2k and bits have cost me £600 so there is £1400 left to play with,I normally pay myself £600 and then just leave the rest in my business account and hopefully i can pay myself a big wage after ive payed my tax.
So the question is what % should i be saving to cover tax
Thanks

 

[harryboon]

Check out this site and it will give you a very good idea what your tax bill will be

O and you can also get it as an iphone app lol

 

[MyAccountantOnline]

As a self employed person you pay tax on your business profits ie sales/income less allowable business expenses (which incidently doesnt include your 'wages' ie drawings).

If your accountant doesnt look after your monthly accounts and give you tax estimates as you go along, or you're not yet using an accountant aim to set aside about 25% of your profit - if you do that you shouldnt be too far out unless you become a higher rate tax payer.

 

[HOMESAFE]

As a self employed person you pay tax on your business profits ie sales/income less allowable business expenses (which incidently doesnt include your 'wages' ie drawings).

If your accountant doesnt look after your monthly accounts and give you tax estimates as you go along, or you're not yet using an accountant aim to set aside about 25% of your profit - if you do that you shouldnt be too far out unless you become a higher rate tax payer.

Thanks,no im not using an accountant at the minute,I am just making sure i keep all receipts and invoices etc and then paying myself a wage that is quite low,just trying to build up some money...
My wife works in an accountants but she only does payroll,she is quite intelligant and what have you so she is going to do me a tax return etc

 

[MyAccountantOnline]

Thanks,no im not using an accountant at the minute,I am just making sure i keep all receipts and invoices etc and then paying myself a wage that is quite low,just trying to build up some money...
My wife works in an accountants but she only does payroll,she is quite intelligant and what have you so she is going to do me a tax return etc

You might just be surprised at how much an accountant can save you

If you keep well kept records you'll find an accountant is probably much cheaper than you think and can potentially save you an awful lot more.

I have regularly surprised clients with tax savings on things they never even knew about.

Good luck with the new business.