Tax

[Sparklez Senior Member Find all posts View Profile Close Sparklez]

Yesterday I phoned the tax people and registered myself as a self employed sole trader as a pert time activity (not my words). Just wondered if anyone else has registered for tax and if it leads to more paperwork than it's worth?

Not sure it was the best move in the world, but didn't want to get caught out, and end up owing the tax man money (I'm already in that boat due to an HR screw up at my full time job).

Thanks
Carol

[Seahorse Super Moderator Find all posts View Profile Close Seahorse]

I need to do the same(tho Im going to be a chicken and fill the forms in and send them off, Im too shy to talk to poeple, hence I like forums).

Was it easy, what did they ask?

My friend is selling cards, i told her about being registered but I dont think she is gona do it, I warned her she could get in trouble!!

I think there is one horrid form to fill in at least once a year with net/gross etc and other confusing words to deal with.
Other than that I dont know.

Good move.Very wise to register, Id hate to get caught out too.So, they are taking some of my hard earned profits!!!!Suppose its better than owing them a huge fortune in the future.

I also have to think of a company name before I do any registering, still cant think of one!

[0103media Administrator Find all posts View Profile Close 0103media]

Yesterday I phoned the tax people and registered myself as a self employed sole trader as a pert time activity (not my words). Just wondered if anyone else has registered for tax and if it leads to more paperwork than it's worth?

I'm self employed and have been for a long time.. I'm actually far better off compared with when I was employed due to being able to put your cost against tax.. The only extra cost is my account fees but these are pretty small..

A few Things you can put again tax..
Petrol..
The depreciation of your car and like..
Loan/creadit cards..
Bank charges
Clothes..

Etc..

Hope that helps

[Sparklez Senior Member Find all posts View Profile Close Sparklez]

I need to do the same(tho Im going to be a chicken and fill the forms in and send them off, Im too shy to talk to poeple, hence I like forums).

Was it easy, what did they ask?

Was very easy Seahorse, all he asked was name, address, NI number, date of birth etc, then trading name and what address I was using for business. Also asked my PAYE ref number, which i didn't have to hand.

He was actually really nice, didn't have much of a sense of humour, but was okay. And he volunteered the info about the NI exemption certificate.

I actually didn't set out yesterday to register. Only phoned to ask for some info and he said I could to it there and then so I just went for it.

If your friend has been trading for more than 3 months, she will have to be careful. You only get 3 months to register and there are penalties if you don't

HTH

Carol

[Sparklez Senior Member Find all posts View Profile Close Sparklez]

I'm self employed and have been for a long time.. I'm actually far better off compared with when I was employed due to being able to put your cost against tax.. The only extra cost is my account fees but these are pretty small..

A few Things you can put again tax..
Petrol..
The depreciation of your car and like..
Loan/creadit cards..
Bank charges
Clothes..

Etc..

Hope that helps

I knew you could put in things like petrol, but I didn't know about bank charges, I'm assuming that wouod only be charges on your business account? I wonder if I could put a whole new wardrobe against tax .

Is an accountant expensive? I was thinking about doing my own, if I keep it fairly simple. Wonder if my granny would come out of retirement for me?

Thanks
Carol

[0103media Administrator Find all posts View Profile Close 0103media]

Regarding clothes ..

If you need those clothes for the bussiness then its an expense simple as that..

A computer, digital camera etc..

My accounant is really cheap but he has been my parents accountant for about 28 years..

I pay less then £300 and have about 12 accounts for him to sort out.. (I think this year he might charge a bit more)

[Fran Senior Member Find all posts View Profile Close Fran]

I'm registered to Inland Revenue as a sole trader and no it's not much in the way of paperwork. You will receive a P35 each year and that's to log your earnings if any and as mentioned you can offset a lot of out goings.

If your working from home you can also have some household bills paid in part by your "business/hobby", i.e. Elec, Phone, Rent money for the room you use, insurance etc. this is usually based on a %.

We've dealt with Inland Revenue for 20+ years with our other business and have had 2 visits during that time, at which time they pointed out other things that we could have been claiming for. IR have always been decent with us but then again we've not tried to pull the wool over their eyes. I've heard from others they are not to be messed with! or they will come down hard on you.

You've nothing to lose by registering but everything to lose if you don't.

If things don't work out for you, you can always cancel registration.

Fran

[Sparklez Senior Member Find all posts View Profile Close Sparklez]

Thanks for the replies guys! Feeling more like I've done the right thing now.

Cheers
Carol

[nattynetty Super Moderator Find all posts View Profile Close nattynetty]

I agree with the others it's well worth registering as you can actually end up with the tax man giving you money - especially if you are only just starting and also work full-time. Also, more seriously they are known to search the web, read small ads in local papers etc to catch unregistered businesses.

When I first registered as self-employed I was making wedding invitations on a very part-time basis and after all the costs (yep inc % of gas, electric and phone bills) I made a loss - didn't bother me as just a hobby really but I ended up getting £120 tax refund!

As for accountants, ask friends & family for recommendations I'm kinda lucky cos my dad's an accountant who spe******es in small businesses - and he's kinda unlucky cos he's got a daughter who always leaves the paperwork til the very last minute!

[Sommerwood Senior Member Find all posts View Profile Close Sommerwood]

Lol at Natty, I trained as an accountant and have registered my part-time hobby as a business, but although was always very meticulous when it came to doing others accounts, my paperwork too is left until the last minute!!!

I work too so as its my ffrst year of trading I am sure once I have offset use of home, vehicle costs, etc etc against it all I will show as a loss, which will be good as will bring my tax down for once rather than keep on increasing as it does!

MNot looking forward to fuilling out my tax return though, used to have a programme at the accounts practice which worked it all out for you, now will have to put my brain back in gear!!!

I still do accounts now for the company I work for, but only to profit and loss stage then their accountant takes over, so have got to refresh myself on what percentages to claim for etc.

[handmadeheaven.biz Senior Member Find all posts View Profile Close handmadeheaven.biz]

I don't think it's worth the risk of not registering, so I just did! If you earn over £4345 a year you pay £2.10 a week national insurance, below and you don't. I've never done anything like this before so it's all new to me. Just got make sure I keep on top of all receipts of incomings and outgoings and I should be ok. I'd rather do this all properly than be caught out. The taxman will catch up with you!! If you have a business you owe it to yourself to do things properly or how else will you grow? I actually find it exciting as it makes me feel like the business is official now rather than just a bit of a dabble.

[ejralph Senior Member Find all posts View Profile Close ejralph]

I found that psychologically speaking, registering was an important step for me also. Aside from just the legal and moral side of it.

It was like I was able to un-ashamedly build my business and didn't feel I had to sculk around in the shadows.

As Steph says, it isn't worth the risk not declaring your sales and registering. Even if you work a full-time job elsewhere, technically you still need to inform the tax office if you are selling online etc. And I know they check ebay, because I knew a guy who worked for tax office and he said finding tax dodgers on ebay was "like shooting fish in a barrel"

I think also though it does get on my nerves when people don't do things by the book because it makes it so much harder for those of us who do.

If you have to make your living from your sales, and you pay tax and NI, you pay insurance to make sure no-one gets hurt by what you do and what you sell - then it is really infuriating to be sat next to someone in a craft fair who is just doing this for "pin money" - because they so often undercut your prices, because they can afford to.

I know that is being highly idealistic, but I do wish sometimes that people would have some solidarity to their chosen craft. Its hard enough to compete with factory-made imports, and bought in goods already.

I don't sell at craft fairs these days as I only run my business online now - but I did enough on the "front line" to remember just how many frustrations there are, without being sat next to someone selling their work for peanuts because they can!

I never used to mind when it was someone selling tat, but when it was someone making beautiful work and underpricing themselves I just wanted to weep! lol

[handmadeheaven.biz Senior Member Find all posts View Profile Close handmadeheaven.biz]

emma, i totally agree with your standpoint on this if only everyone felt the same.

i feel so much better now i've registered. like you said, i won't feel worried anymore about promoting handmade heaven

[ejralph Senior Member Find all posts View Profile Close ejralph]

And so you should promote it Steph - your work is gorgeous and I think as many folks as possible should know about it!

Just loved those coasters you made for Laura's commission by the way. (can't remember if I posted on your thread over at GH or just thought about doing it! ) They are so pretty - gorgeous colours.

Emma

[handmadeheaven.biz Senior Member Find all posts View Profile Close handmadeheaven.biz]

thanks emma. i'm always worried when i do commissions whether the client's going to like what i've created specifically for them. luckily laura said they were 'PERFECT' so that was a relief! i did like them so much i wanted to keep them tho! hahaha!