FAQ


I’m now Self-Employed. What action should i take?

Call Tax Buddy of course! You need to register with Revenue as Self Employed by completing a TR1. You may need to also register for Vat.


What do I pay tax on?

You pay tax on the profit you make each year. The tax you pay is PAYE and NINO


How you calculate profit for a tax year?

It is easier to process your books of account using an accounting software. We use special softwares. Once you enter your sales, your costs/expenses, and process your bank transactions to capture costs that you may not receive an invoice for (i.e. bank charges, insurance direct debit etc.) you then have a basic profit and loss account


What happens if I don’t pay my tax on time?

You will be charged interest on late payment to the value of 10% of the income tax due for the year. Even if you part paid your income tax but could not manage to pay the full liability, you will still be charged 10% of the TOTAL tax due. It is in your best interest to get your tax return completed early so you have several months to get the tax due together – alternatively, if you are due a refund then you can claim it earlier and have the benefit of that money!


Are VAT returns hard to complete?

Vat returns can get a little complicated – you need to make sure you charge the correct vat rate to customers and that depends on your industry and whether you supply goods or services. You then deduct the VAT charged to you by your suppliers. We are keen to help – this is what we do, and we usually do it better and faster than you can, so it is cost effective to outsource this work.

I cannot emphasis enough how important it is to stay on top of PAYE and VAT returns and payments. They can build up very quickly and can be costly in terms of penalties, interest and a possible audit. Most clients want to be compliant and want to spend time concentrating on their business not worrying about TAX bills.


Are VAT returns hard to complete?

Vat returns can get a little complicated – you need to make sure you charge the correct vat rate to customers and that depends on your industry and whether you supply goods or services. You then deduct the VAT charged to you by your suppliers. We are keen to help – this is what we do, and we usually do it better and faster than you can, so it is cost effective to outsource this work.

I cannot emphasis enough how important it is to stay on top of PAYE and VAT returns and payments. They can build up very quickly and can be costly in terms of penalties, interest and a possible audit. Most clients want to be compliant and want to spend time concentrating on their business not worrying about TAX bills.


What is form P60?

A P60 is an annual statement of the amount of PAYE, NINO by an employer or your pension provider if you are retired.