The Tax Preparation Blog

Posts Tagged ‘freelance’

Question: How do lenders calculate how much the self employed can borrow for their mortgage?

ie… P.A.Y.E can borrow around 4x their gross pay.

Ok! I’ll elaborate.!!!!!!!!!

Do lenders use a self employed persons net income (ie.. after tax) or their gross income (ie.. before tax).

And forget Self Cert! Lets assume we are talking about a person who can prove what they earn and has a good credit history.
And prefrebly from the UK so to avoid any American jargon!

Thanks

Answer: Hi there,

Self Employed Mortgages differ from lender to lender. Many companies will use your net income as the basis for your mortgage calculation, however they will take your accounts and also use irregular income and add that to it (i.e projections and forecasts for this years income will often be taken into account.)

I have a self employed mortgage and although I was turned down by C&G when I applied direct, I found a mortgage broker who got me a great deal with nationwide, and they used a 4x basis to calculate.

In my opinion (from experience) you are best approaching a ‘whole of market’ financial adviser who can let you know the best products available to suit your position.

Hope this helps

Caroline

Daw: Why tips don’t count towards a pension

Many waiters may prefer cash, but some reach middle age and wish their tips counted when calculating Canada Pension and Employment Insurance benefits

Self Employment IRS Income Tax Rate Information & Help 2010, 2011

Question: what is the range of average salary for IT professional?

Hi – what is the range of average salary for IT professional with 6 years of experience and a masters part time degree from India and what would be the taxes would it be flat 32%? references would be greatly appreciated.

Answer: I’m assuming you are looking at employment is Australia. Your best option would be to look at jobs at www.seek.com.au and see what employment is available that matches with your skills and qualifications.
Tax rates are available at www.ato.gov.au. Tax is not levied as a flat rate, as the rate of tax increases in proportion to your income.

Readers’ Letters November 18

Readers’ letters from the November 18 issue of the Observer. CORRESPONDENT Terry Russell complains about the recent repairs to the bridge over the A27 at the Bognor Road roundabout, and wonders if anyone actually uses it?

I hate income tax man…..

Question: Liqour store job?

I used to cry at our answer forum last yr abt my paycheck. i was making 300 per week after taxes.. all ican save is 50$ per week. now my pay is around 450$ per week in the liqour store….i save around 200$ per week..and then i have my part time job as a professional sports bettor online..i make somewhere around 200 -300$ per week from that. so althogether i save around 500-600$ per week..is it good or no good..i think i’m kickin ass !!;)

Answer: Thats pretty good. Keep saving! If you dont make a ton of money you can still make a least a million in savings if you dont spend a lot.

In backing tax, Chafee banks on honesty

Lila Sapinsley, a longtime family friend and former legislative leader, pressed the telephone to her ear – flabbergasted. “Oh Linc,” she groaned to the former U.S. senator on the other end, “you’re not going to do that.”

Tax Tips: Tax Forums (ASL, Captions & Voice Over)

Question: Would this be an excellent version of “Hell” to send politicians to?

Day in, day out, for eternity, they need to file taxes for me:

Married filing jointly, 2 kids
One of us owns a small business
Income in 2 states (one being New York)
Home office deductions
Meals and travel expenses related to small business
Capital gains realized from stock sales
401k distribution from an old employer who corrected some math

They need to do all of this without the benefit of a tax professional or software to help. Just the IRS and it’s lovely forms and publications.

After spending a weekend doing our taxes – WITH help – I am certain this would be a special version of Hell which would make politicians wonder why they have created this crazy complicated monster.
It was both created and has evolved.

Every little stupid step and extra hoop is someone’s election promise brought to life.

Answer: Love it!
You forgot to depreciate your vehicles and other equipment.

It’s Tax Time Again for Some Business Owners

Crunch time, again: Business owners who got tax extensions now face Oct. 15 filing deadline Business – United States – Tax – Accounting – Taxation

Freebie Channel: How To Get Free $1000 Cash And Free Tax Software

Question: TDS on Professional Fee?

Hi
I am recruitment consultant. when i raise the bill to my client, they send in the cheques after deducting the TDS. I hv few questions abt this :
1. How can i take care of this at the end of the years,
2.Are there any tax deduction slabs in professional fee as well like income.
3. Also, do i need to show the proof of expensies done on business while filling the return?

It wud be helpful if smone cud address to these queries.
Thanks in Advance.
—

Answer: if your yearly bill to a client is more 20000 in a financial year than client is responsible to deduct tax on the payment .the rate of tax is 10 % basic rate plus surcharge10%on basic rate(if applicable) and cess 3% on (basic +surcharge).

1.tds is adjustable against your tax liability to which income relates on which tax has been deducted.if you have nil tax liability than tds will be refunded to you.
2. there is no tax slabs for tds on professional fee .
3. yes you should have resonable evidence for expenses you have done ,moreover if your gross receipts are more than 120000 than you are liable to maintain proper books of accounts and if your gross receipts are more than 10 lacs than your books should also be audited u/s 44ab

you can download free tds calculator from the link given below

http://simpletaxindia.blogspot.com/2007/10/free-tds-calculator-fy2007-08-excel.html

JK Harris & Company Warns Taxpayers about the Consequences of a Federal Tax Lien

According to the National Taxpayer Advocate’s semiannual report released in July, federal tax liens are up 475% since 1999.

Tax Consultant