Please help: Tax Advice for Self-Starter

ONIONS65

Hello everyone.

I have just come back from two years staying with my family in Kent. I'm now in a position in which I want to start working for myself as an entertainer. I am a singer and will start to do paid gigs BUT I KNOW NOTHING ABOUT SELF ASSESSMENT and really need some help on how do I get started?

So what is the best thing for me to do to start learning how to manage my own taxes as a self-employed person etc?

All good advice is welcomed.

Thankyou.

Daniel

4nick8

Suggest you start by phoning the HMRC on 0845 9154515. This number is for the newly s/e. Ask to make an appointment with a member of the business support team.

Savvy_Sue

Nothing specific to add to that, but it's also worth looking on the Small Biz board if you have any other questions, eg what are 'allowable expenses' to set against your tax liability.

Inaat

Hi. First, you must inform the revenue within 3 months of commencing self employment, otherwise, you will be liable for a £100 fine.So, make sure you get the form from the revenue, check website https://www.hmrc.gov.uk.Secondly, keep all documents necessary to support your tax return in future, all expenses, all receipts.You then need further advice to minimise your tax bill in future. If your business will be substantial, get a cheap, but good accountant! There may be more to save than loose in fees! E.g, you may have qualifying expenditire to reduce or tax bill. By the way, your first tax return is not due until 31 January 2007!Good luck.

Ems!

Inaat wrote:

By the way, your first tax return is not due until 31 January 2008!Good luck.

Your first tax return will be due 31/1/07, if you start your self employment now, this is because you will have been self employed during the tax year ended 5 April 2006. Even if you choose a year end of, say 31/1; you will still need to put your earnings up to 5/4/06 on a tax return due by 31/1/07.
(sorry for all the dates in the post - hope i've not confused you!!)

Don't worry though, once you have registered with HM Revenue & Customs they won't let you forget when things are due ! You'll get sent a tax return and several reminders/payslips etc throughout the year!!!

Em.x

howchum

Savvy_Sue wrote:

...but it's also worth looking on the Small Biz board if you have any other questions, eg what are 'allowable expenses' to set against your tax liability.

Where is the "Small Biz Board" please?

sophistica

I've been self employed for decades and I would say .... save EVERY receipt, put down all your phone, petrol, public transport etc and use a system like Quicken each month to track your expenditure against all key categories. At the end of the tax year your accountant will use this information to calculate your tax liability. He/she will also put down a % of your receipts for telephone and car etc as personal use. If you ever get a tax inspection (as I did last year) you are "dead in the water" without receipts. I reckon that I am the only person in the UK who got a tax inspection and my books were in such good order I ended up with nothing extra to pay!

Patr100

howchum wrote:

Where is the "Small Biz Board" please?

It's easy to miss it: Just after "silver savers" in "money saving for who or where you are" section.

http://forums.moneysavingexpert.com/forumdisplay.html?f=27

HOLsale

i'm curious

i do some merchandising and auditing for several companies and for 99% of them i'm classed as self employed

if i do work further afield (i'm in edinburgh) like say in glasgow and will be there all day, can i count the cost of my lunch as an expense?

my logic being that as i'm a representative of the company with NO CAR (i travel by bus or train) i can't exactly carry around a bag full of food everywhere, lugging my coat and handbag around for 2 hours at one job (many won't watch your stuff for you) at each job is bad enough but stuffing my handbag full of things to eat and drink is just out of the question

ONIONS65

I am a singer...and travel around doing gigs.

Sometimes I drive, sometimes I take the train.

So I'd like to find out, what am I able to claim in the job thaty I do:

Petrol?
Food purchased whilst working?
Clothes and outfits for performing? etc.

Where do I begin!!!

HOLsale

ONIONS65 wrote:

I am a singer...and travel around doing gigs.

Sometimes I drive, sometimes I take the train.

So I'd like to find out, what am I able to claim in the job thaty I do:

well i take the bus or train most of the time

i always claim a day pass for the bus which is currently £2.30 though i can only claim that total for the entire day unless i also took a train. (or whatever other bus price if i take another bus company etc)


if i have to take a train i keep my tickets as receipts and claim the entire fare

if you have a car you can claim at 40p per mile

i have the added complication that some companies i work for pay for travel and some just part of my travel so if they pay more than my costs i only claim my actual costs as anything i'm paid over my actual costs counts as income and is taxable.

if they don't cover my costs then i claim the additional costs as expenses. if that makes sense