mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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Could really do with getting my affairs in order, they are a bit complex now I have moved from self employment, and I was wondering if anyone in the know could advise me
I have
Full time job, employed, paid weekly via PAYE
1 property that is co-owned with a friend who is also employed and PAYE, that is on a buy to let mortgage
I also have a sole trader plumbing company
we have had the house a year tenanted and not declared a penny on it, could really do with starting a book on it.
The cash flow from the house is on a joint account between me and my mate, my plumbing cash flow is from a business account in just my name, my wages from my job go into my current account.
Am I better closing mine and my mates joint account, add him onto my plumbing business account and put the house into my plumbing accounts and doing a tax return each year on them both as one? we arnt talking massive numbers here, Im sure any decent accountant could balance them. I just want to keep my plumbing accounts going in case I want or need to do some sub contracting.
but then how does it affect my tax being in both employment and self employment?
[Edited on 27-12-2013 by mattk]
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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The only real difficult bit about that is you'll have already paid some tax via PAYE, so your year end calculation gets more complicated.
It doesn't really make a difference what accounts the money is stored in or how you move it. The important bit is what ends up for each of you as income.
So regardless how you store it, the fact you've earned it and split up whatever is left over after the costs is your taxable portion.
Ideally the house and plumbing business would show losses, as that'll bring your liability down a bit in the main job and you may see a rebate on that.
Although if they're both profitable, more difficult to go that route.
Take your annual salary, add the profit left over from the house and plumbing, subtract your tax code, subtract your PAYE deductions per month, and that is what is left over to pay.
Your friend can also do the same.
[Edited on 27-12-2013 by Ian]
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Seany
Member
Registered: 13th Dec 06
Location: Dunfermline, Fife : Drives Astra cdti Sri
User status: Offline
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I had the same problem last year minus the house. I ended up sending all my wage slips and relevant paper work to my accountant and he sorted it all. I even ended up with a rebate.
As for having two jobs technically you may pay more tax on the second but im not sure how that would work with it being your own business.
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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It was worth every penny to put our flats through with an accountant-he sorted it with all the receipts etc. that we have that we haven't had to pay any tax so far and won't for another year at least.
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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House makes £100 a month, can easy offset that though with bills and materials from my own jobs. My plumbing company will be ticking over at best. Im only keeping that so I can go back sub contracting at a days notice should I need to
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