Saving for Tax

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Bryan99

Registered User
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I've recently become self employed and want to start putting aside the tax portion of my pay, each month. Can anyone recommend a savings account for this? I was thinking of going with Rabobank.
 
just a note, you can pay tax each month if your self employed using a P30 form. I do this as I dont trust myself to have all the money at the end of the year.
 
envelope said:
just a note, you can pay tax each month if your self employed using a P30 form. I do this as I dont trust myself to have all the money at the end of the year.
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P30s are only for employees or company directors. Self employed can set up monthly direct debit payments with Revenue.
 
Sorry, I don't understand what you are getting at? Unless you have a clear understanding of the issues, you should be getting professional accountancy or tax advice?
 
Well I've been informed that I can claim certain things as expenses i.e. wear on tear on the car, petrol, meal etc. I'm a bit unclear about how it all works. Like I said, I've only recently become self-employed.
 
Bryan99 said:
Well I've been informed that I can claim certain things as expenses i.e. wear on tear on the car, petrol, meal etc. I'm a bit unclear about how it all works. Like I said, I've only recently become self-employed.
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You really need to talk to an accountant - whatever you do, don't get the tax sums wrong. Your first year, maybe two, your tax bill might not be too bad - startup costs, low p/margin etc. Then you start paying the balance of last year's tax and the prelim for this year. From year three onwards (when you are really starting to make some money) you hit top rate and the prelim shocks you! Been there!

So, with the benefit of 20/20 hindsight, i suggest that you put 20% of profit each month aside (i use RaboDirect) even if you have to dip into the overdraft, just pay it like a creditor's bill. once it's gone out of sight you learn to live without it and plan your cashflow accordingly. START SAVING NOW!!

BTW, as an aside, i was using a second account with my business bank for ages until i realised that the money was being eaten by charges and not earning anything in interest. thousands in an account abd the bank charging me for the privilege!! now i'll have a few bob interest at hte end of year with no charges - nicer feeling.
 
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