The Small Business Tax Help Blog

Posts Tagged ‘business’

Recovery Doubts Linger Despite High St Surge

The UK economy is struggling to mount a recovery despite retailers’ impressive Christmas performance, other indicators suggest.

Employment tax planning : Cobia the employment tax planning experts

Question: Help with starting up as a Sole Trader?

Hi people

About to start my own business, design work on my home computer in the evenings whilst continuing with the day job just to earn some extra beer tokens.

I have been to businesslink.co.uk and see that my best solution is a Sole Trader. So will fill in form and register.

What happens next. Do I just start? Not registereing for VAT – dont and wont earn 64k. But how do I invoice? Does my invoice to the client just say :
To prepare company stationery: £so many pounds.
And leave it at that? No VAT mentioned whatsoever?

Also say I earned £100 on a job. Do I then put 25% of this away for end of the year when the tax man comes a knocking?

This is my first night looking through this, just need a few tips please. I am constantly searching the web but a few friendly (or fiendly considering tomorrows halloween!) would be great.

Many thanks
Tony

Answer: Go to:

http://www.hmrc.gov.uk/businesses/tmastarting-up-in-business.shtml

and you'll a lot of very helpful information which should answer many of your queries.

My accountant recommends that small businesses put away 20% of net income in readiness to meet tax bills.

It may be worth registering voluntarily for VAT. Please have a look at something called the Flat Rate Scheme (details on HMRC website) to find out more. Record keeping is very simple indeed and it could work in your favour depending on how much VAT-able stuff you buy and how much VAT your charge to customers.

If you decide not to register for VAT, you simply don't mention it on your invoices. If this is queried, just tell the customer the truth: that you are currently below the level for VAT registration.

Good luck!

Small Business Owners Protest Tax

PLYMOUTH, N.H. -- A big turnout at a hearing in Plymouth to discuss the controversial LLC tax. Fifty small business owners boarded a bus in Bedford in order to drive to the hearing together.

Home Business & NetworkMarketing Tax Tips

Question: Can a UK company get a US tax ID or EIN number from the IRS?

It’s okay, Ive sorted it, I got one.
Don’t think I was clear enough with the question but the answer is ‘YES’ a UK company can get a US tax ID or EIN number. To the people who answered my question. There are many, many reasons why a UK company might wish to get their own US tax ID. My reason is because I get my stock from the US and 90% of my customers are in the US% and my fullfilment company is in the US.

Answer: If you are a UK company and do not presence is the U.S., then you do not file the US taxes, so you do not need tax ID or EIN.
You will not get it.

PayPal Asks Sellers to Provide Tax ID Numbers

PayPal asked sellers to add their tax ID numbers to their accounts if they fall under the requirements of a new IRS reporting rule.

Utah County Tax ID (APN) Number Search

Question: As employer what % of what I charge needs to go to employee benefits / taxes etc…?

I’m thinking about hiring employees even though I’m in business as sole proprietor. I plan to change to LLC when resources allow. Need to know how much % I should set aside for employee overhead costs. I have heard 15% and 25% and need to know before I enter into an agreement for aditional work that will require more help. If I pay said employee $15 hr. how much would I need to charge to cover state – fed amounts? I also plan on getting an accountant after I know this is in contract, and will be able to afford their service. If I’m not mistaken self employment taxes are around 15%, but does that rule hold true for employees, or is it more?

Answer: When you have an employee, you are required to file quarterly return for employment taxes for federal and state. State employment taxes depend upon your state. If you are going to have employees, your first requirement is to get EIN and state tax number.

Federal taxes.
From employee's paycheck you withhold
1. Social security tax at 6.2% for first $97,500 of wages
2. Medicare tax at 1.45% on all wages.
3. Federal income tax as per his W4 allowances.
Then you add equivalent social security tax and medicare tax (from employer's side) and send the entire amount as Federal employement taxes.
Then there is FUTA, which you normally make yearly payment.

State taxes depend upon your state.
For example in CA, ther are three taxes
Unemployment insurance UI at 3.4%
Employment tax ETT at 0.1% for first $7,000 of wages
State Disability Insurance at 0.6% for first $83,389 wages (max $500.33 per employee).

Children, education good for tax credits

Dear Action Line: Where can I find the IRS definitions for such things as 'dependents' and 'Child and Dependent Care credit?' — L.T., Jenks.

Question: ma unemployment federal id #?

im wondering if anyone knows the federal id # for massachusetts unemployment. im trying to file my taxes and i have all the info except that. and i know ill be getting a 1099 but im going into the hospital next week and want to get it done now.
tia

Answer: 04-6002284 This is for Commonwealth of Massachusetts
(Unemployment or tax refund)

The Posting Board

Calendar Monday, Jan. 18 Martin Luther King Jr. Day: Town Hall closed. Tuesday, Jan. 19 STATE ELECTION: Polls open from 7 a.

Ron Paul Info for the Newly involved (newb)