Reviewing how I am doing

[J.C.E]

		Invoiced total	Expenses total	Hours total	Profit total

[TD="bgcolor: #e8eef1, colspan: 2"] Total
[/TD]
[TD="bgcolor: #e8eef1"]

£9,586.32​

[/TD]
[TD="bgcolor: #e8eef1"]

£5,299.73​

[/TD]
[TD="bgcolor: #e8eef1"]

133​

[/TD]
[TD="bgcolor: #e8eef1"]

£4,286.59​

[/TD]
[TD="bgcolor: #e8eef1, colspan: 2"][/TD]

[TD="colspan: 2"] Profit margin [/TD]
[TD="colspan: 6"]

44.72%
​

[/TD]

[TD="bgcolor: #e8eef1, colspan: 6"]
[/TD]

Evening guys

I keep a log on my laptop of all my lil jobs on the side (mostly weekend jobs)
I have now gone full time SE but my mon-fri is taken up by being a subbie (the figures above are just weekend bits for my own business since around Sept 2015- and not the subbying)

I think I am doing ok- but obviously not busy enough quite yet to jack the subbying in yet

your thoughts would be interesting to hear....

 

[plugsandsparks]

Are you sure you are under the NI threshold for second job?

 

[Leesparkykent]

Are you sure you are under the NI threshold for second job?

Its not a second job as he is self employed subbing during the week and doing his own jobs on the weekend.

 

[plugsandsparks]

Its not a second job as he is self employed subbing during the week and doing his own jobs on the weekend.

Oh dear, then.

 

[J.C.E]

I paid through CIS for my subbying and will have to do NI
and will be doing a return for my own bits
tax wasn't the aim of this thread.....just reviewing how I am going really

 

[Leesparkykent]

Oh dear, then.

Why? Even though its off topic.

 

[HandySparks]

Since you're making £32/h clear profit on your weekend jobs, I'd give up the subbying and concentrate on more of the same.

 

[Leesparkykent]

I paid through CIS for my subbying and will have to do NI
and will be doing a return for my own bits
tax wasn't the aim of this thread.....just reviewing how I am going really

So if you work it out based on an average 8 hour day you are earning about £250 a day. Does your expenses include van insurance,pl,pi,fuel,wear and tear, road tax,etc etc?

 

[HandySparks]

Since you're making £32/h clear profit on your weekend jobs, I'd give up the subbying and concentrate on more of the same.

So if you work it out based on an average 8 hour day you are earning about £250 a day. Does your expenses include van insurance,pl,pi,fuel,wear and tear, road tax,etc etc?

Good question. If the OP's not included a reasonable proportion of his business expenses against his weekend work, then the 'profit' could work out quite differently.

If it's just the cost of materials included then I guess the figure shown is 'gross profit', from which you have to deduct the other expenses of running the business to get a true picture.

 

[plugsandsparks]

Why? Even though its off topic.

Not really off topic, he asked for thoughts . Mt immediate thought was that it was not a true picture of profit

 

[Octopus]

Not sure what point you are trying to make? the profit margin is irrelevant IMHO

Your nett profit per hour of just over £32 is OK - if that is what you are asking?

So less 20% tax and 9% NI gives you about £23 per hour so about £850 per week or about £37K per year based on 44 weeks work which is about right for being SE

where are you deducting your "business" expenses?

 

[plugsandsparks]

Also depends on his subby rate, when I built up the business I had to subby to pay the bills but was getting £25/hr plus expenses, also I had guaranteed hours so it was nearly 18 months before I could wean myself off and get my own clients without losing out.

So a lot depends on what additional expenses he will have going alone, how much idle time he needs to factor in and of course the additional risk.

So I agree impossible to give an opinion except point out that there is an additional NI issue at least, which he has recognised, all good.

I avoided CIS by going Ltd from day 1 and invoicing direct to each sub I was working for, only had push back from one subby but HMRC sorted them out.

That way there was only one set of accounts, for both my direct work and my subby work, hence PAYE was a doddle and I could easily see when I needed to up my rate so the subby work dried up...

 

[7029 dave]

Yeah looking at the breakdown very nice, but you and only you know if that is good for you.?