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bhj1

NEW TO SELF EMPLOYED - TAX AND MONEY

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bhj1

hello ,

 

i am about to start as self employed.

 

i realize i need to register online as a sole trader.

 

1 - what do i do about money? trying to sort tax credits etc out. are my predicted earnings what i estimate to earn each month one expenses are deducted??

 

2 - if i estimate i will make 15000 a year and can show receipts etc for 2000 then i only will pay tax on 2000??

 

im unsure of how the financial side of it all works.

 

what else do i need to do?literally i have handed in my notice at my current job.

 

help!!!!1

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adamangler

Shouldn't you have had a little think about this before the notice went in?

 

A few hours on the .gov site and tax credit sites etc should reveal all you need to know

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Spartan
Shouldn't you have had a little think about this before the notice went in?

 

ROFL.

Yes that does seem the wise course of action b-u-t, what's done is done.

 

My advice is get banging on doors ASAP, telling all new clients that you'll be along next week to clean.

 

Why have you chosen window cleaning? Do you have experience already?

Do you have a friend who can take you along to show you the ropes if you haven't?

 

With regards to registering as a sole trader I think you have up to 3 months to register so don't panic about that yet.

 

 

Sent from my CUBOT DINOSAUR using Tapatalk

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Guest Solarpanelcleanington

Don't panic. Register with hmrc and get a gateway id. This'll allow you access online to self assessments etc. Regarding tax credits, estimate your earnings and the difference will be settled the following year.

You should be earning to much to qualify fairly quickly though.

 

Keep all receipts.

 

I find Aworka very useful and well worth a tenner a month.

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bhj1

thanks everyone.

 

please keep the advice coming.

 

i have been working on days off with a local window cleaner friend for a few months, enoy it and am 100%this is what i want do.

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bhj1
Don't panic. Register with hmrc and get a gateway id. This'll allow you access online to self assessments etc. Regarding tax credits, estimate your earnings and the difference will be settled the following year.

You should be earning to much to qualify fairly quickly though.

 

Keep all receipts.

 

I find Aworka very useful and well worth a tenner a month.

 

 

thanks

 

what is Aworka??

 

im sure i will however ust want to be sure im doing things properly.

 

if they ask for my predicted earning, is that what is make per month or whats left after expenses such as fuel and resin etc are taken out pe month?

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Spartan
thanks

 

what is Aworka??

 

 

if they ask for my predicted earning, is that what is make per month or whats left after expenses such as fuel and resin etc are taken out pe month?

 

It's profit, not your turnover.

 

aworka - Run your Service Business the Easy-Peasy way.

 

 

 

Sent from my CUBOT DINOSAUR using Tapatalk

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Clisty1989

You have 3 months to register. Tax credits are a minefield your better off just canvassing for lots of work non stop

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bhj1
You have 3 months to register. Tax credits are a minefield your better off just canvassing for lots of work non stop

 

Thanks clisty.

 

what are the benefits of waiting 3 months?

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Spartan

No benefits.

 

Hrmc just realise that new businesses are often run off their feet and hence they give you 13 weeks breathing space

 

Sent from my CUBOT DINOSAUR using Tapatalk

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Clisty1989
Thanks clisty.

 

what are the benefits of waiting 3 months?

None. Also put 20% of EVERYTHING you earn, that way you have what the taxman will take, plus a little extra (treat it as a bonus once your tax bill is paid).

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Clisty1989
Thanks clisty.

 

what are the benefits of waiting 3 months?

None. Also put 20% of EVERYTHING you earn, that way you have what the taxman will take, plus a little extra (treat it as a bonus once your tax bill is paid).

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Hawke

Actually I'd reccomend waiting until the new tax year before registering - HMRC often starts your SA record as soon as you are issued a UTR which means you need to submit a tax return although you weren't self-employed. This confuses many people and they often just ignore it...until their fines reach the £1600 pound mark a few month later....

 

Also are you claiming Working Tax Credits or Child Tax Credits??

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bhj1
Actually I'd reccomend waiting until the new tax year before registering - HMRC often starts your SA record as soon as you are issued a UTR which means you need to submit a tax return although you weren't self-employed. This confuses many people and they often just ignore it...until their fines reach the £1600 pound mark a few month later....

 

Also are you claiming Working Tax Credits or Child Tax Credits??

 

What is SA??

 

Well at the moment we get both.

 

So you think I should register as sole trader when??

 

 

Sent using the Window Cleaning Forums mobile app

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Hawke
What is SA??

 

Well at the moment we get both.

 

So you think I should register as sole trader when??

 

 

Sent using the Window Cleaning Forums mobile app

 

SA is Self Assesment - ie you file your own tax return to declare your income revenues to HRM.

 

When did you start self employment? If between April 2016 and April 2017 then wait until after 6th April 2017.

 

Check the Tax Credit Calculator to see if will be entitles to WTC - most windies earn too much within working time to qualify unless they're subbing or employed.

 

Tax credits calculator - GOV.UK

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A Pane In The Glass

get an accountant and get them to do it all for u

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adamangler

In your first year you might not earn enough to pay tax when you take into account all your startup expense. I think I offset about 10 grand and came under the threshold with my profit.

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Cristian
On 27 January 2017 at 08:43, adamangler said:

In your first year you might not earn enough to pay tax when you take into account all your startup expense. I think I offset about 10 grand and came under the threshold with my profit.

Did you claim your full expense on your van purchase? 

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J and S

Set up a direct debit with HMRC and pay something into your tax account each month....if your like me I can guarantee you won't put 20% away each month.....best thing I ever did and am now always in credit even when they deduct the years tax due.

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adamangler
11 hours ago, Cristian said:

Did you claim your full expense on your van purchase? 

 

 

Nope I do mine mileage based. Works out easier and more tax efficient

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