Going Self Employed

fengirl_2

HMRC will accept anything which is reasonable. If you are using a corner of your bedroom, I don't think they would accept that you are incurring any additional costs by using your room for your business. We are talking about a tiny tiny tax saving here and its not worth the hassle of arguing the toss if you are challenged, in my view.

chrisb1357

Well all i use is a small desk from ikea, desktop pc and printer and thats about it. SO are you saying by trying to add things like electric costs etc etc might be more time wasting for myself

fengirl wrote: »

HMRC will accept anything which is reasonable. If you are using a corner of your bedroom, I don't think they would accept that you are incurring any additional costs by using your room for your business. We are talking about a tiny tiny tax saving here and its not worth the hassle of arguing the toss if you are challenged, in my view.

Horace

Claim for your electricity usage too. If you have had to buy furniture and equipment you need to claim for that.

You don't need to register for VAT when you are self employed - you can do voluntarily or you can wait until you hit the threshold where you have to start charging VAT.

If you join the federation of small businesses - you can get access to cheaper car insurance etc etc. I have recently insured my private car (I dont have another one for the business) and have just paid £371 for business and personal use whereas last year I only paid £343 fully comp - no business usage.

With the FSB you can bank with the co-operative bank who will give you free banking for life, I am considering joining them.

fengirl_2

Yes, chris, you can only include in your accounts the additional costs of trading from home. If you can genuinely show that your parents' electricity bill goes up as the result of the venture and that you pay them the difference, then please do it, but I think it will be more hassle than its worth. Concentrate on the genuine expenses which you can show receipts for.

Kirsten06

Hi,

Working from home can give you a sense of total freedom as you can work independently on your own terms and dress however you like as you are in your own comfort zone. It is believed that stress levels are reduced significantly as daily stresses such as traffic jams and driving in general is non existent. This way, you have much more time and energy to put into your work resulting in higher productivity.

chrisb1357

Well today i took a step further in going alone as a Sole Trader by informing HRMC

Chris

PlutoinCapricorn

So you have taken the plunge. You will probably get a pack from HMRC, and a tax form next April.

I do hope that all goes well for you.

Do remember to keep records of all income and expenses.

moneymabel

Well done Chris- good luck with your new business!

malcolmcoles

fengirl wrote: »

Can I just emphasise what I said in my first post - you need to register with HMRC asap - there is no longer 3 months' grace.

Does it say that somewhere official? It's just that here, say, on the direct.gov site, it says you do still have three months. The same here on business link.

Horace

malcolmcoles wrote: »

Does it say that somewhere official? It's just that here, say, on the direct.gov site, it says you do still have three months. The same here on business link.

I was told the same thing by my local chamber of commerce and I have heard it from the HMRC too - unfortunately, government departments take an age to update their websites.