W
WebBoard
Guest
From: Mike .
Self employed vs paid employee and IPs
From: Janice
Date: 7/20/00
Time: 7:14:18 AM
Hi all, I've been away on holidays and have just returned. I am trying to wade through all the posts on this forum. For anyone one who has contacted me privately by email, it will take me time to answer you. However, I have a question which I hope some people out there can answer.
When a person is a paid employee, tax is removed as you work each week(PAYE). When tax time rolls around people try to claim any tax deductions (which usually is not a lot) to try to reduce the amount of tax you pay. Therefore, taxable incomes may be high or lower depending on the income and allowable deductions made. On the other hand, self employed people can earn money and claim far more in taxable deductions and reduce their taxable income to a lower level.
When one starts out on the self employed road how can one convince lending institutions to lend money for IPs when the taxable income is low? Has anyone started investing in IPs as a self employed person and not an employee?
I would be pleased to hear from people who have started this way.It may also help other people who are in this position too. Thanks Janice
Self employed vs paid employee and IPs
From: Janice
Date: 7/20/00
Time: 7:14:18 AM
Hi all, I've been away on holidays and have just returned. I am trying to wade through all the posts on this forum. For anyone one who has contacted me privately by email, it will take me time to answer you. However, I have a question which I hope some people out there can answer.
When a person is a paid employee, tax is removed as you work each week(PAYE). When tax time rolls around people try to claim any tax deductions (which usually is not a lot) to try to reduce the amount of tax you pay. Therefore, taxable incomes may be high or lower depending on the income and allowable deductions made. On the other hand, self employed people can earn money and claim far more in taxable deductions and reduce their taxable income to a lower level.
When one starts out on the self employed road how can one convince lending institutions to lend money for IPs when the taxable income is low? Has anyone started investing in IPs as a self employed person and not an employee?
I would be pleased to hear from people who have started this way.It may also help other people who are in this position too. Thanks Janice
Last edited by a moderator: