self employed

[iamelectric]

quick question cant find the answer on google , if i go self employed at the start of january will i have to do a tax return for the 31st of jan? or am i better waiting till feb , cheers

 

[Octopus]

No. If you go SE on the 1st Jan 2014, you will have to submit your first return by the 31st Jan 2015 if done electronically, covering the period 1st Jan 2014 to the 31st Mar 2014

 

[telectrix]

if you go s/e in jan, your tax year will end april 5th of the same year. you then have till the end of september to submit your self-assessment. ( or january31st of the following year if on-line).

 

[iamelectric]

thanks and is going self employed the same as sole trader?

 

[telectrix]

yes...unless you form a limited company.

 

[iamelectric]

cheers thats all a need to know , until its tax return time

 

[Octopus]

don't go limited until you have the turnover (and more importantly profit) to justify it!

 

[Octopus]

cheers thats all a need to know , until its tax return time

Just make sure you keep ALL of your receipts, for everything related to your business and its best to have a separate bank account.

 

[HandySparks]

cheers thats all a need to know , until its tax return time

You need to notify HMRC that you're self employed within a few weeks of doing so. Loads of info on the HMRC website.

 

[Octopus]

oh and don't forget to pay your class 2 NI's

 

[iamelectric]

yeah a read up about that , is it easy enough to sort all the paper work yourself or just get an accountant?

 

[Octopus]

Your choice, I get mine done by an accountant as I find it all a bit tedious!

 

[iamelectric]

also i have spent over a grand on tools and other things i will need over the last few months will i be able to claim for these or only thinks after i am registered

 

[telectrix]

you can claim it all. try downloading QuickFile. you can do all your invoices, estimates, purchases and keep it all on track. and it's free. as for motor expenses, rather than keep all receipts, you can work on mileage. record the odometer at the start and end of each year. claim 45p/mile for the 1st 10,000 miles, then 25p/ mile if over 10,000.

 

[Earthstore]

Just read through this and my advise to you would be to see an accountant, one that you get along with.
A good one will help you out and save you money too, then in a year or two once you understand the system you can then choose to do more of it yourself if you enjoy paperwork that is...

 

[VoltzElectrical]

Try to do your tax return as soon as you can after the 5th of April as everyone leaves it really late and then you wait longer for your rebate.

Definitely go with mileage rather than receipts.

The on-line tax return is very easy. Basically you register, enter the sums, gross, net etc.. your expenses and so on, then submit, and within a few weeks the money is in your account.

This is if you are CIS. I can only speak for CIS as this is all I have known.

IF HOWEVER, you are sole trader, and your tax is not being stopped by your 'employer' (contractor) under the CIS scheme, then you may have a tax BILL to PAY.

I was CIS, so was stopped 20% on everything I was paid. However, I had paid tax on my fuel, tools, and also my non-taxable income (yearly allowance changes every year), so I always received a rebate because I had paid too much tax.

I'm not sure if I have explained this very well!