mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
|
Ive no idea when / how I need to do one of these, Ive only been trading since the start of september and have every recipt of everything I have bought
is it best for me to get an accountant and if so how much am I looking, or is it easy enough to do a self assesment
|
Cosmo
Member
Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
|
You're probably best getting advice from one to begin with and to give you an idea of if you can do it. They'll also have a few ideas to help save you some tax too so worth a meeting tbh.
|
mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
|
when do I have to start worrying about this? its the end of jan it has to be in isnt it?
|
Rob_Quads
Member
Registered: 29th Mar 01
Location: southampton
User status: Offline
|
First off have you informed the inland revenue. If not then do it NOW. You only get 3 months after your first invoice otherwise you are liable to a nice £100 a fine.
As for is it easy. If you are Ok then with numbers then yes it is fairly easy. Specially if you are not talking big numbers. Remember to keep receipts for any IT equiptment etc as you can use these to claim against your tax due.
You have PLENTY of time before you have to worrk about it as..
THIS tax year - April 10 -> April 11 will not be due until Oct 11 (if you do it on paper) or Jan 2012!
As you only just started this tax year you will have plenty of time.
|
mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
|
Thank very much Fellas, I wont be talking big numbers this year,
I have informed the inland revenue, and have applied for my UTC number, did that the day after I did my first job
|
MarkM
Member
Registered: 11th Apr 01
Location: Liverpool
User status: Offline
|
Nice big folder split into months. Store every receipt in it. Will help when you come to filing the return.
|
Gary
Premium Member
Registered: 22nd Nov 06
Location: West Yorkshire
User status: Offline
|
quote:
Originally posted by MarkM
Nice big folder split into months. Store every receipt in it. Will help when you come to filing the return.
I have massivly failed at this.
I just have a nice big pile 
|
Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
User status: Offline
|
Do you make enough from it to need to pay NI? I cant remember the exact amount but its around 5k profit per year?
If not you can get an exemption certificate for it.
Adult GiftsClick here to vist us
|
Sam
Moderator
Premium Member
Registered: 24th Dec 99
Location: West Midlands
User status: Offline
|
I still paid NI when I first became self employed even though I made fuck all back then, as I'd like to have some sort of state pension when I retire! 
|
BigSte
Member
Registered: 27th Aug 02
Location: Sheffield
User status: Offline
|
If you're self employed you should be paying Class 2 NI at £2.40 a week regardless of what you earn....if you want a state pension when you come to retire you won't get one unless your NI has been paid.....
In addition if you earn more than £5715 per year you will be liable for Class 4 NI at 8% on every pound earned over the £5715.
With regards to Income Tax, you will have a basic rate allowance of £6475 so basically anything you earn up to this amount doesn't get taxed but every pound you earn over this you will pay 20% on.
On your part you need to keep records of all income and expenditure. If you do any subcontractor work the contractor will more than likely be instructed to deduct 20% from any payments made to you, they will then pay that over to the IR on your behalf. They should send you a certificate every month to tell you how much they have deducted from you - it is quite vital you keep these for your tax return as evidence as to what you have already paid.
I'm an accountant for a huge public construction firm so don't deal with Income Tax on a daily basis. Got loads of mates who are self employed though and I do all there self-assessment returns. To be honest there's not much to them but some people are put off by them and the thought of doing them wrong so my mates prefer to bung me a few quid and have it done right.
As someone said before the tax year runs from 6 April - 5 April, so sometime shortly after 5 April 2011 they will send you a self-assessment return that is due in by 31 Oct 2011, or 31 Jan 2012 if you file online.
As soon as you've got the form I'd recommend sending it in as early as poss....get it over with (think I sent my missus's in around the 1st May this year )
If you do decide you'd rather give someone a few quid then give me a nudge and I'll do it ya.... service will include full preperation and filing of your return, and I also produce a little pack which basically itemises everything, draws up a profit and loss account, and includes any recommendations I might have for future tax periods.
The profit and loss accounts will be very useful if you ever apply for credit (mortgage, loans, etc) as any lender will want to see these.
Any more questions gimme a shout 
|
MarkM
Member
Registered: 11th Apr 01
Location: Liverpool
User status: Offline
|
quote:
Originally posted by BigSte
If you're self employed you should be paying Class 2 NI at £2.40 a week regardless of what you earn....if you want a state pension when you come to retire you won't get one unless your NI has been paid.....
In addition if you earn more than £5715 per year you will be liable for Class 4 NI at 8% on every pound earned over the £5715.
With regards to Income Tax, you will have a basic rate allowance of £6475 so basically anything you earn up to this amount doesn't get taxed but every pound you earn over this you will pay 20% on.
On your part you need to keep records of all income and expenditure. If you do any subcontractor work the contractor will more than likely be instructed to deduct 20% from any payments made to you, they will then pay that over to the IR on your behalf. They should send you a certificate every month to tell you how much they have deducted from you - it is quite vital you keep these for your tax return as evidence as to what you have already paid.
I'm an accountant for a huge public construction firm so don't deal with Income Tax on a daily basis. Got loads of mates who are self employed though and I do all there self-assessment returns. To be honest there's not much to them but some people are put off by them and the thought of doing them wrong so my mates prefer to bung me a few quid and have it done right.
As someone said before the tax year runs from 6 April - 5 April, so sometime shortly after 5 April 2011 they will send you a self-assessment return that is due in by 31 Oct 2011, or 31 Jan 2012 if you file online.
As soon as you've got the form I'd recommend sending it in as early as poss....get it over with (think I sent my missus's in around the 1st May this year )
If you do decide you'd rather give someone a few quid then give me a nudge and I'll do it ya.... service will include full preperation and filing of your return, and I also produce a little pack which basically itemises everything, draws up a profit and loss account, and includes any recommendations I might have for future tax periods.
The profit and loss accounts will be very useful if you ever apply for credit (mortgage, loans, etc) as any lender will want to see these.
Any more questions gimme a shout
One of the most informative posts I've seen on here.
|
Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
User status: Offline
|
Yea. I just realised, the reason i got an exemption certificate for NI class 2, is because i already pay NI via my PAYE job
Adult GiftsClick here to vist us
|
Dan
Premium Member
Registered: 22nd Apr 02
Location: Gorleston on Sea, Norfolk
User status: Offline
|
Whats your "few quid" ste 
Might be handy to know when i come to filling my return next year.
I done one and made a loss this year haha, but it was within first 3 months of trading i got a request through
Adult GiftsClick here to vist us
|
mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
|
I pay my class 2 NI by DD at the mo
~Im sub contracting at the mo, they pay me weekly and pay my income tax, I have been informed that I will get a notice of tax paid at the end of every calender month
thanks for your advice
|
BigSte
Member
Registered: 27th Aug 02
Location: Sheffield
User status: Offline
|
yes you will Matt.....they will be deducting 20% tax. 20% is the correct rate of tax you will probably end up paying but it totally ignores your personal tax free allowance of £6475, hence why you will probably be due a rebate each year.
As soon as you complete your self-assessment (if you do it online) it will tell you exactly how much rebate you will be entitled to and will pay it into your bank within a few weeks, hence the earlier you file your return the quicker you will get any rebate.
Dan - £30 for your return calculating, completing, filing, and preperation of a mini-accounts set for future use. Also includes my small admin fees for postage for sending the stuff back to you, printing, paper, etc.
Any high street accountant will want at least £100 for a similar service.
|
