UK Made a big mistake

[John Riley]

Hi All,

I am new to this limited company stuff and also my account is just shocking for the £100 a month i pay them. As a novice to all this tax , Vat , Expenses etc i was just saving 25% of my earnings (-my £600 Salary) to cover the tax and Div Tax i would be due to pay. I take a Div anytime i have needed to as i am none the wiser but recently my wife was made redundant and we were struggling for a few months so i started taking Div out of my business (which was my tax money) so i have pretty much nothing left in there. My account has no visability of this by the way and i thort i could just put the money back in before my first tax submission is done. I realise today after some reading online it was a mistake, i have only been a limited company since Feb this year and new to it all. any advise will really help all. Thanks

 

[Fidget]

I'm not really sure what you're asking. What is it that you've been reading online that makes you think you're in trouble?

 

[Frand]

Hi All,

I am new to this limited company stuff and also my account is just shocking for the £100 a month i pay them. As a novice to all this tax , Vat , Expenses etc i was just saving 25% of my earnings (-my £600 Salary) to cover the tax and Div Tax i would be due to pay. I take a Div anytime i have needed to as i am none the wiser but recently my wife was made redundant and we were struggling for a few months so i started taking Div out of my business (which was my tax money) so i have pretty much nothing left in there. My account has no visability of this by the way and i thort i could just put the money back in before my first tax submission is done. I realise today after some reading online it was a mistake, i have only been a limited company since Feb this year and new to it all. any advise will really help all. Thanks

Hi John,

I have just logged in and have noticed your post. You haven't made a mistake, except that you have taken away the funds you are using to pay your tax next year. As long as you record all your earnings and obviously you fill out your quarterly VAT return, at year end you will need the funds to pay your tax. As you've most probably gathered, it is always good to save your tax and 25% is a good figure. If you need further help on your accounts, let me know and I will try and help as best I can.

Fran