Ads

Collapse

Announcement

Collapse
No announcement yet.

self employed - ARRRGHH! (and bank acc!)

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • self employed - ARRRGHH! (and bank acc!)

    hello!
    crikey, i'm asking a lot of questions on here, sorry! heres another!

    i'm going self employed (i also work 'employed') and like many it seems, new questions keep coming into my head! i'm not going to get a business account (dont want to be robbed anymore then i am!!) but if i have a sperate account just for my 'business' ( i say this loosely!) and i put in what i receive in sales, and take out what i need to purchase materials, how do i account for anything left over to use for myself (kids more like! and thats if theres anything left in there of course!)

    one minute i'm 'up' about the whole thing, next minute i'm scared witless (single parent blah blah). anyone who understands any of this, is doing the same, or even any advice in general about being a self employed crafter - please help!!

    Crafty Moo!
    http://www.folksy.com/shops/urbanfairy

    http://www.facebook.com/?sk=apps&ap=...70164056332933

    http://www.urbanfairy-jewellerydesigns.blogspot.com

    http://twitter.com/#!/urbanfairyannie

  • #2
    You don't necessarily need a separate account if you are self-employed, but just keep very accurate records of sales and purchases, plus stock used by yourself etc etc to do your accounts. I am self-employed so obviously all the money that is spent buying stock is mine and the takings go into the same pot - you do however need to be sure you record everything for your accounts, including stock held. A spreadsheet on the computer should be sufficient to start with, better to note too much down than not enough, it is easier to do your tax return then. The tax man basically wants to know what you have spent and what you have taken (putting it in very simplistic terms) in order to work out if any tax if due. You do have to record all items of stock that are used by yourself as that is counted as a sale.I find the better records I keep the easier other things are - for instance marketing - because I keep an accurate record of what sorts of cards (and numbers) I sell I have a much better idea than coming home and marking sold 5 cards and the price. Once you have your spreadsheets set up it should not take long to keep them up to date.
    Cynthia
    http://iforjonesdesigns.website.orange.co.uk

    Comment


    • #3
      Can I just say I know where your scaredy feelings coming from, I have it too! Have always worked for someone else and I'm about to take the plunge and have a bash at being self employed too...

      ...but what a BUZZ it will be to have your reins in your own hands and be brave enough to go for it, takes a lot of bottle and I have every respect for anyone who does it, so do congratulate yourself on how courageous you are whenever any doubts creep in

      Have you spoken with your local Business Link yet? You can usually get a certain amount of free advice from them and, if you go in armed with all your questions pre-written down, you can make the most of your time with them

      All the very best of luck wth your new adventures!
      Shaz x
      Keepsake Kollections
      & Rossendale Ramblings!
      http://focusonlife-shaz.blogspot.com

      Where else can you get Mental and Retail Therapy?!

      Comment


      • #4
        I have been self-employed (in a previoous life!) and although it is scary to start with it is also extremely liberating. I took as much free advice as possible in the beginning and later on when it really took off I employed a good accountant who saved me moey in the long run. If you work from home you can claim a certain amount against your household outgoings as you are using some of the space for your business. Keep on top of your bookkeeping and hang on to all your receipts however small. Lots of luck.
        www.littlebead.blogspot.com
        www.twitter.com/littlebead

        Comment


        • #5
          YOU LOVELY, LOVELY PEOPLE! cant really put it any other way. havent been on here long (about a week?) and feel a bit bad that i've not answered any questions for other people, only asked them! (yeah, like i'd have the answers!! haha)

          and as for shaz (focus on life) you little star you talk about making me feel good about myself!! i literally grew another 10inches reading that post!!! thank you so much. and let me know how it goes with your own self employment adventure eh? and dont forget to listen to your own advice............................ its one thing to give out good advice, but another entirely to apply it to yourself!

          just one thing. i dont really like swearing, and someone here is guitly of that - 'spread sheet' OMG! there, ive said it. doesnt make it any easier though......................... hahaha

          ok, one more question (for now, OBVIOUSLY!) how accurate do you have to be in describing your sales when logging it? obviously i want to know for reference etc, but does that lovely young man (now that would be a turn up!) from the tax office have to know the full description if/when he looks at my books? oh yes, just a little one...................... how much (very roughly) would it cost to have an accountant check your books at the end of the financial year?

          and dont worry my little lovelies, this time next year you'll be able to ask me anything.................................... i'll be like the wisest of wise old owls............................
          Crafty Moo!
          http://www.folksy.com/shops/urbanfairy

          http://www.facebook.com/?sk=apps&ap=...70164056332933

          http://www.urbanfairy-jewellerydesigns.blogspot.com

          http://twitter.com/#!/urbanfairyannie

          Comment


          • #6
            Originally posted by urbanfairy View Post
            and dont forget to listen to your own advice............................ its one thing to give out good advice, but another entirely to apply it to yourself!
            Aw bless you babe. And tell me about it, I'm kacking it a bit cos my safety net redundancy money is almost used up now and the pesky mortgage bill & all his little brothers & sisters are all down to me alone! So you might see me playing it safe for a little while & take on some home-working type jobs so I can still get my crafty biz off the ground around it

            We'll keep each other posted eh chuck! Good luck!

            Shaz x
            Keepsake Kollections
            & Rossendale Ramblings!
            http://focusonlife-shaz.blogspot.com

            Where else can you get Mental and Retail Therapy?!

            Comment


            • #7
              Sorry about swearing, but spreadsheet is not really that bad!!!! Every computer has one, even if you haven't got Excel or one of the main ones, most computers have a spreadsheet under Works or similar. Sorry, if you haven't used them before they do sound horrid, but really is a very easy way to keep records, you don't even need to be able to use all the functions at first, just keep a list of things. If you don't want to use a spreadsheet (sorry swearing again!!) just keep your lists on the computer in some other format (and don't forget to back them up).

              Good luck anyway. I think the tax man is more concerned as to what you have sold something for rather than a full description of the goods.
              Cynthia
              http://iforjonesdesigns.website.orange.co.uk

              Comment


              • #8
                Things to consider..

                If you open another personal account with say a different bank its free like a normal current account.. If you use the account for buying and for all the profit it make life easy.. You don't need a business account unless you want to be paid by a company name.

                Also consider a credit card that again is only used for purchase stock .. The more you seperate things the faster you can see your records..

                Don't forget paypal is a bank account its no different to your current account..

                Hope that helps
                .


                Promote your craft site today : Add Your CRAFTS
                (£5.50 a month or £50 per year)

                Fun new blog: Snowboard Stuff

                Comment


                • #9
                  I agree with Mr M - I am employed however am registered with the IR for my self employed candle status. I found it much easier to have two personal accounts the first is the old one where the wages and all the household things go - the 2nd one I set up is solely for the Candles - nothing else, I find this very very easy to keep track and it is obvious if the card has been cloned or something because an unusual payment for a meal for two would stick out like a sore thumb.

                  I did think about getting a separate business account but looked into the charges and realised how much I would need to make each month before I broke even put me off. It does look more professional I think to be able to take cheques payable to the company name but I can honestly say that I haven't had anyone comment or complain if I ask for cheques to be made to me as opposed to Candles by Lisa (and this includes wholesale customers).

                  HTH.

                  Lisa

                  Bowed Over
                  Handmade Dog Collar Accessories
                  www.bowedover.co.uk

                  Comment


                  • #10
                    That sounds a great tip, to set up a separate personal account

                    I was chatting to a business account adviser in passing at a recent event and she said the only benefit to a business account rather than personal is you can build up a relationship with your adviser so maybe its useful if you need to take out a biz loan to generate some cash?

                    I dont have one though so I'm only quoting her, and she's biased of course

                    Shaz x
                    Keepsake Kollections
                    & Rossendale Ramblings!
                    http://focusonlife-shaz.blogspot.com

                    Where else can you get Mental and Retail Therapy?!

                    Comment


                    • #11
                      I have a business plan that i add to and cross off things that are no longer any use , my business adviser said to do this .... i cannot give the business link peeps enough praise they are wonderful !!
                      I have a basic savings account for saving for big business items and for putting in my small profits .
                      I save all my receipts for everything .. just in case !!
                      I do my own tax returns i did have an accountant once and he lost all my records and i got a fine ... so now i do my own its very easy you just fill in the right bits and add up and take away and the peeps at the tax office are very helpful too !!

                      Sorry did i waffle a bit !!

                      Sara x
                      allabouteden blog

                      fromthehandsofkittyeden

                      my folksy shop

                      Comment


                      • #12
                        Self Employed

                        I have been self-employed for about 30 years, the best advice I can give you is to keep a record of everything you spend and everything you earn. If you can afford an accountant it is a good idea. It shouldn't cost too much if you can find a retired one or a working mum. Don't worry too much about getting it wrong, so long as you keep some kind of record. I have found the Taxman to be very understanding and helpful. Be as flexible as possible in your thinking and watch you don't overspend initially, try to get lots of feedback and grow organically. It is very tricky to get pricing right.
                        Chris W.
                        x
                        Gemstone Jewellery and Gifts

                        Comment


                        • #13
                          fantastic advice everyone, thanks a million!

                          the seperate account bit i'd planned to do anyway. mainly cos i need to keep things clear and seperate for my head to understand it!

                          i'm hoping that the tax man is understanding, as for the unforseeable future i'll be doing my own, but i'm keeping everything remotely relevent just in case!

                          i also have employed work (part time) so i have a regular amount coming in (boy would i like to stop!) does this mean i should pay national insurance on my self employed status, even though i pay with my employed status? for now i'm guessing its easier to just to pay, but is this going to confuse them??
                          Crafty Moo!
                          http://www.folksy.com/shops/urbanfairy

                          http://www.facebook.com/?sk=apps&ap=...70164056332933

                          http://www.urbanfairy-jewellerydesigns.blogspot.com

                          http://twitter.com/#!/urbanfairyannie

                          Comment


                          • #14
                            No - you only have to pay National Insurance once and if you're paying it through your part-time work, won't have to pay it from your "self-employed" status (well, that's what the guy from Business Link told me anyway !)
                            Sarah
                            For 100% wool felt supplies, felt balls, buttons, ribbon, needle felting supplies and lots of other lovely stuff, visit BLOOMING FELT

                            Blooming Felt's Blog

                            Comment


                            • #15
                              Originally posted by Blooming Felt View Post
                              No - you only have to pay National Insurance once and if you're paying it through your part-time work, won't have to pay it from your "self-employed" status (well, that's what the guy from Business Link told me anyway !)
                              I have a feeling thats right too, I only recall it from when I was about to appoint an accountant a couple of years ago when I first thought of starting up a small business and I was still working full time then - the accountant brought me a form I just needed to complete to state I was already paying my NI through my full time employer

                              Shaz x
                              Keepsake Kollections
                              & Rossendale Ramblings!
                              http://focusonlife-shaz.blogspot.com

                              Where else can you get Mental and Retail Therapy?!

                              Comment

                              Working...
                              X