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Oh I mean that's going into the saving for a mortgage!
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Mar 19, 2024 23:30
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Would a lower savings goal mean you would not have to dip into credit? If you have credit that accrues interest you should try and pay that off first and foremost. Having done that you should put aside some emergency money. Having done those things and if you are happy to put the money away and not touch it, with a definite goal of buying a house, and are first time buyers, you should consider a LISA as you get a 25% bonus from the Government. But only if you are definitely going to use the money for a house as there is a penalty if you withdraw for other reasons.
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Mar 19, 2024 23:33
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I'm Josefs partner, hello! So a few things: we don't accrue any interest on credit, its pretty much a case of using it to pay it off for building our credit score so we are well within our means there, a lower savings goal would mean we wouldn't dip in at all and probably lose the cards from them not being used. I'm pretty knowledgeable about savings as that's my area, but for our mortgage we are litteraly on track for our deposit being ready by June so that's the thing, we are looking at houses for around 120 grand and lower because the area is full of them and i need to stay in the local area due to having shared care with our local GP and my private clinic. It kind of puts a LISA off the table because it would just be delaying getting the house at this point, we could easily have over a 10% ltv before September, but working for a financial institution we will get a far lower ltv product if we want at a very good rate
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Mar 19, 2024 23:44
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DiscoWitch posted:I'm Josefs partner, hello! So a few things: we don't accrue any interest on credit, its pretty much a case of using it to pay it off for building our credit score so we are well within our means there, a lower savings goal would mean we wouldn't dip in at all and probably lose the cards from them not being used. I'm pretty knowledgeable about savings as that's my area, but for our mortgage we are litteraly on track for our deposit being ready by June so that's the thing, we are looking at houses for around 120 grand and lower because the area is full of them and i need to stay in the local area due to having shared care with our local GP and my private clinic. It kind of puts a LISA off the table because it would just be delaying getting the house at this point, we could easily have over a 10% ltv before September, but working for a financial institution we will get a far lower ltv product if we want at a very good rate Honestly, it sounds like you two have got your poo poo together and are close to realising your goals.
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Mar 20, 2024 12:39
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Naar posted:Not an accountant, but I do have a limited company. If you need to purchase something which will be used for business purposes, the company can purchase it (i.e. pay for it using your business bank account debit card) or you can purchase it yourself and reclaim the amount from company funds as an expense. If you want to reclaim VAT, you have to be VAT registered and submit VAT returns. You can voluntarily register for VAT if you want. I'm not sure if it's possible to reclaim anything for things you already own personally before starting your company, if that's what you were thinking. I would probably submit a self-assessment just to be on the safe side, it's not likely to be complicated if you don't have any salary or dividends coming from the company. Okay, so what do I do if my company has no funds at present? I was going to set up a Monzo account for it (I've seen recommendations, but last time I was contracting I used NatWest) which I imagine I just need so HMRC can pay VAT back to me, then I just send them my business expenses and they refund VAT to the company? Then I guess pay myself a dividend with them? (or just leave it for later business uses)
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Mar 21, 2024 03:14
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BizarroAzrael posted:Okay, so what do I do if my company has no funds at present? I was going to set up a Monzo account for it (I've seen recommendations, but last time I was contracting I used NatWest) which I imagine I just need so HMRC can pay VAT back to me, then I just send them my business expenses and they refund VAT to the company? Then I guess pay myself a dividend with them? (or just leave it for later business uses) I have a limited company so I can share what I do from my own experience. If your company has no funds (as pretty much all do when starting) then you need to get some. That can come in different ways but one of the most common would be an owner/director loaning the company money. Effectively if its just you then you would create a business bank account and then transfer some funds to there from your personal account that you can then use to purchase goods, stock, equipment etc to get started with whatever you are doing. Your company does not pay any tax on the money you lend it and you have as much time as you like for the company to repay you. You can set up terms with interest and whatnot but that gets a lot more complicated and is more likely to happen once your company is established. In addition a company can lend a director money but it needs to be paid back with 9 months and can have some big penalties if not done correctly. You do need to record these loans on the company's accounts but that's pretty simple with any basic accounting software. Once you have that money in there you would use those funds to purchase the items and then every quarter you would submit a VAT return where HMRC then pays you back the VAT. It has to be for business expenses only as many people do try to take the piss out of this so don't be dumb with it (e.g. buying yourself a jet ski and then claiming the VAT back). I use Xero for my accounting as it's fairly cheap, simple and ubiquitous. It also allows you to just reconcile things and then connect it to HMRC to do the VAT return for you. Registering for VAT is pretty simple and definitely a good thing as far as legitimising your business but not really needed if it's going to be a simple side hustle or low turnover (I think the cutoff is £85,000 turnover before they force you to register).
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Mar 21, 2024 17:56
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BizarroAzrael posted:Okay, so what do I do if my company has no funds at present? I was going to set up a Monzo account for it (I've seen recommendations, but last time I was contracting I used NatWest) which I imagine I just need so HMRC can pay VAT back to me, then I just send them my business expenses and they refund VAT to the company? Then I guess pay myself a dividend with them? (or just leave it for later business uses) i’ve recently set up a new company and getting the a monzo account was extremely easy just using my phone and the company documents i remember trying to sort out a lloyds account for my old business and i think it took ages and a few trips to the bank to sort some forms, interesting how it was a completely different era only a few year ago
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Mar 21, 2024 20:10
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Is it just a feature of index funds that brokers take a long time to deal in their shares? Or is this just a feature of my crappy broker (iWeb)? Seems strange that I ordered a sale of some shares early yesterday morning and nothing seems to have happened about it.
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Mar 21, 2024 20:25
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bloke on the telephone didn’t have his morning coffee or the fund packs a bunch of orders together to save on brokers fees
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Mar 21, 2024 20:38
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El Grillo posted:Is it just a feature of index funds that brokers take a long time to deal in their shares? Or is this just a feature of my crappy broker (iWeb)? Seems strange that I ordered a sale of some shares early yesterday morning and nothing seems to have happened about it. It it’s a fund, they usually trade once a day at a certain time which is when the fund is valued. If it’s an ETF it should be near instant
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Mar 21, 2024 20:58
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Jel Shaker posted:i’ve recently set up a new company and getting the a monzo account was extremely easy just using my phone and the company documents I actually set up the company 2 days ago, yesterday I got two pieces of junk mail offering business accounts, and today got the confirmation letters from HMRC. Looks like I'll go with Monzo
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Mar 22, 2024 03:12
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Pantsmaster Bill posted:It it’s a fund, they usually trade once a day at a certain time which is when the fund is valued.
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Mar 22, 2024 09:01
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It may be too late if you’re already incorporated but I highly recommend using your accountant’s address (or paying for a specialised service) to keep your home and company address separate. Otherwise various web scraping services will make googling your name return your home address with no real recourse.
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Mar 22, 2024 09:09
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El Grillo posted:It's an index, I think - the tracker shows day to day variations in the price. L&G Global tech index. You don't invest directly in an index, an index is just a defined list of securities with the value being a weighted average of the underlying prices. An index fund synthesises the value of the index by buying the underlying stock that make up the index, or opening derivative contracts based on them. L&G funds are unit trusts which are open ended funds, so will value once a day based on a snap of the underlying prices. And that price will be used for any customer investments or withdrawals on that day.
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Mar 22, 2024 09:19
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Ah ok thanks. Still seems strange that the deal order is taking three+ days to actually be actioned, I guess this is just a side effect of using a broker that has no fee except a flat £5 transaction fee lol. edit: actually I forgot the request I made was for sale of some vanguard Lifestrategy shares, not the L&G - so definitely was for an index fund sell El Grillo fucked around with this message at 09:59 on Mar 22, 2024 |
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Mar 22, 2024 09:21
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El Grillo posted:Ah ok thanks. So you’re mixing up some concepts here. An index fund is an investment fund which tracks a certain index (you may have heard of active vs passive funds). Lifestrategy funds are technically actively managed non-index funds because they do not track an index directly, although the underlying funds within do. If you look in the portfolio data for the LS funds you’ll see it invests in, for example, the Vanguard US equity index fund. That fund is a passive index fund that aims to track the S&P index. Index funds can be implemented in different ways, the two common ways are OEIC and ETFs. OEICs are priced and traded once per day, ETFs work more like shares in that they’re traded on an exchange and can be bought/sold effectively instantly. Your Vanguard fund is an OEIC which means it’ll only trade once per day. I suspect that you’re also running into “settlement time” which is the time between your sale being recorded and the funds being transferred to the broker and on into your account. See the iweb page where it says this is usually two days: https://www.iweb-sharedealing.co.uk/help-and-guidance/existing-customer/trading-support.html Some brokers allow you to withdraw instantly but that is basically them making a loan to you assuming the trade will settle fine. Iweb don’t do that
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Mar 22, 2024 13:51
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Josef and Discowitch: it sounds like you have your poo poo together and are on track. However in your situation I would add some extra into your emergency fund, if and when you can. I say this because it appears from the description that you’re both working for the same company and so you’re running more of a risk that a redundancy could affect both of you at the same time. Other than that good luck with the house purchase!
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Mar 22, 2024 13:54
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Dakha posted:It may be too late if you’re already incorporated but I highly recommend using your accountant’s address (or paying for a specialised service) to keep your home and company address separate. to add monzo will send the card to the business address, so your accountant will get it in case you’re like me and pondering for a few days worried the card was stolen until it gets sent onto you by the secretary
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Mar 22, 2024 13:55
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Pantsmaster Bill posted:So you’re mixing up some concepts here. I honestly only look at this stuff in any detail once every one or two years so I guess I have half-forgotten everything.
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Mar 22, 2024 16:52
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I'm currently unemployed, with no income (and thus no tax) this financial year. I'm about to start working again. Normally, I'd consider an employer pension or SIPP however both provide either pre-tax payment or tax relief. I have sufficient savings to put the £4k into a LISA. I have previously owned property overseas, so a cash LISA doesn't make sense. It seems to me like this might be one of the cases where a S&S LISA makes sense with the understanding that it's locked away til I'm 60, so long as I can find one with fees only proportional to the size of the portfolio (and thus it won't be eaten up slowly by management fees due to lack of economy of scale). Does such a fund even exist? Put differently, would the free £1k worth the faff of setting one up, even if I end up rarely contributing to it (e.g. because another pension scheme is more financially beneficial)? The major risk in my mind would be whether I stay long-term in the UK - if I'm no longer a citizen, I'm illegible to contribute to it and lose the benefit. I don't mind having some money just tied up here until I'm 60 in that instance, but again wouldn't want it to just slowly atrophy from fixed fees. Nam Taf fucked around with this message at 19:01 on Apr 1, 2024 |
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Apr 1, 2024 18:59
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Anyone who is self-employed use a laptop for both business and personal use: how do you decide what percent is business & claimable? Or is it just finger-waving? (Bought a new laptop in the 23/24 tax year).
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Apr 4, 2024 01:43
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Finger-wave but don't take the piss is my approach
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Apr 4, 2024 07:45
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I have a limited company rather than self employed, not sure if that makes a big difference, and at this point I claim for as much as I reasonably can. Laptop is 100% business (and to be fair I do very little outside of business hours on it). Phones are an allowable expense so iPhone + plan on the business. I even tried to put my 1gig home internet through the business, which the accountant said probably wasn’t ok so I also pay for the cheapest possible home plan privately, making it only slightly worth it. YMMV but I’d say it’s all defensible.
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Apr 4, 2024 07:59
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I'm using my laptop for work nearly all the day through Monday to Friday so I can pretty safely say it's 100%. Sure it might be used to check personal emails or come on here on ocassion but I think it's just being responsible and not buying a gaming laptop that doesn't even go into the office.
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Apr 4, 2024 08:41
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Fists Up posted:I have a limited company so I can share what I do from my own experience. If your company has no funds (as pretty much all do when starting) then you need to get some. That can come in different ways but one of the most common would be an owner/director loaning the company money. Effectively if its just you then you would create a business bank account and then transfer some funds to there from your personal account that you can then use to purchase goods, stock, equipment etc to get started with whatever you are doing. Your company does not pay any tax on the money you lend it and you have as much time as you like for the company to repay you. You can set up terms with interest and whatnot but that gets a lot more complicated and is more likely to happen once your company is established. In addition a company can lend a director money but it needs to be paid back with 9 months and can have some big penalties if not done correctly. Okay, so I think I need to transfer funds into the business account, then back out to "purchase" stuff from myself? I have a spreadsheet of expenses I need to do this for, mainly this computer and a course I got, do I need to track loans in either direction, or only from the company to myself (which I don't presently mean to do)? Possibly I just need to say how much went in as a loan as opposed to income?
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Apr 4, 2024 11:20
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If you’re simply reimbursing for something you bought personally, it’s a case of transferring the money from your business account to your personal one and filing the personal receipt somewhere. That’s an expense repayment. If you need some additional capital in your business to buy stuff before your business is earning money, that’s pretty straightforward, just make a note of it - so long as you’re not charging interest then there’s no real paperwork. If you charge interest then it needs to be market rate, otherwise there are tax implications. Borrowing money from your business is considered a directors loan with lots of rules and potential tax implications. Avoid if you can through there are a few times it can make sense to use one.
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Apr 4, 2024 17:54
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BizarroAzrael posted:Okay, so I think I need to transfer funds into the business account, then back out to "purchase" stuff from myself? I have a spreadsheet of expenses I need to do this for, mainly this computer and a course I got, do I need to track loans in either direction, or only from the company to myself (which I don't presently mean to do)? Possibly I just need to say how much went in as a loan as opposed to income? You should be able to get some kind of visa/mastercard with your account that allows you to make purchases. If not it's easy to find a business bank account that offers that. If you're paying with a personal card and expensing it back to yourself then do as the poster above says. This is very easy to track if you're using any kind of basic accounting software. I use Xero and it just connects to my business bank account automatically and then I reconcile each purchase into the different bucket it belongs to. For example the Laptop would be Office or IT equipment (and then appear as an asset) and the course might fall under something like Training. If you are only going to have a handful of purchases in the next few months then you probably wouldn't even need accounting software as it's literally just a few lines in a spreadsheet. However I think you'd then have to do a VAT return manually and HMRC are pushing to get everything digital.
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Apr 4, 2024 18:14
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New tax year means playing with ISA time. I've currently got the last few years ISA allowance in a Vanguard account which has a 0.15% fee. Trading212 and InvestEngine both seem to have a 0 fee ISA so tempting to transfer in. InvestEngine have an offer where they give you a 'boost' for transfering in - https://investengine.com/isa/isa-transfer/#boost-your-isa whereas Trading212 has a 1% bonus for topping up with them so if you use your whole £20,000 allowance they'll give you £200 on top.
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Apr 7, 2024 22:22
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