tax returns > coming soon

[Rabbithunter 456]

if my profits are lower than my tax code, should i get a tax rebate

[mike1458 14]

You would like to think so wouldn't you.

 

ATB Mike

[joel222 65]

Doesn't work like that mate. Your profits can be a lot higher as long as you have plenty of expenses to put in you should get a rebate. I take it you have been getting your tax deducted every week? If so then whatever your expenses amount to you should get 20% of it back plus 20% of your allowance before tax applies. It's a little more complicated than this but this might give you some idea.

[gnasher16 29,836]

A good accountant is worth his weight in gold....these days you will have one do your annual returns for a couple of hundred quid,and will most likely save you 10 times that.

[Fat-Ferret 857]

Your tax code is your personal allowance...ie, What amount you can earn before tax, for example a Tax Code could be JL5460, Meaning your personal allowance is £5460....Its tax free up that point, then a anything over £5460 is taxable...But there are deductions, allowances and add backs that will all deduct from this as well.

 

If your working in building for examples, as a sub contractor and getting tax deducted each week, it will be at a higher rate of usually 40%...But when your accountant tallys up your personal allowance, then expenses such as work wear, tools, telephone, use of office etc, It will always work out that the revenue have taken more than they should, thus you are left with a Tax Refund, which your accountant will then take his fee from and write you a cheque for the remainder...Usually.

Edited March 26, 2010 by Fat-Ferret