Self-employed swim teacher

xnatalie81x

Hi all

I hope someone more knowledgable can help me.

I am going to be teaching swimming for a club - i am already registered as self-employed as i have worked for them for a while (since april) - but now i have increased my hours from 2 to 7.5 week i am going to take a bit more time to keep records.

First off i am very very new to this so i don't even know how to fill in a tax return - is there like a mock one i can have a look at somewhere with guidance notes so i can get a feel for what it looks like.

What receipts should i collate and can i claim are expenses as part of my job. I know the main things would be like petrol to and from work but do i put receipts or a basic rate per mile...... i will also have to include swimming costumes and laundry for those and towels but how would i work this out. Also will it all just be added together and go on the form as an amount or are there seperate sections for each thing........

Is there anything else you claim as expenses as part of your job and how does it work. Say my costume is £25 - will that whole 25 be subtracted from my income or is it just that no tax is applied to that £25.

I am a complete beginner to this. Any help much much much appreciated.............

PlutoinCapricorn

Assuming that the registration applies to a date later than 5th April 2009, then HMRC will send you a tax form to complete in April 2010, and you have until January 2011 to complete it, assuming that you complete it online, which gives you ample time to investigate the requirements. The form comes accompanied with some guidelines and useful notes about completion.

It is best to complete your return online, you can see immediately how much tax you will be liable for. There are sections for several sources of income, including self employment. If you sumbit online, you can use the paper form for practice.

You should get receipts for all business expenses, and work out percentages where relevant. You need to think about items and costs that you would not have if you were not teaching swimming. You really should invoice your clients. Total income minus total allowable expenses equals profit, and this is what you will be taxed on. You need to keep records and details in case of investigation, but if your profit is under £15k you just need to put totals on the return.

xnatalie81x

I have invoiced them termly for April - July (only work term-time) as it was only 2hr week but from now on i will invoice mthly. They send a letter with all co. details on and the total amount i have been paid for that period. Not mega detailed but i think the tax ppl need to take it up with the club. I know for 100% sure i am the only person out of about 25 teachers who actually declares the income (cos i asked the otehr teachers!)

xnatalie81x

Also, sorry, do you still get your taxable allowance so mine is 6,2summit - so if i earn 2500 with my taxed by co. job will i still be able to ear 3,500 odd with self-employed job before being taxed on it.............

AND how much should i be claiming for petrol per mile. Would find this easier as the pool is only about 5min drive away so cannot fill car up just for that (go there 3 times a week though so adds up to 30mins a week)

blue_monkey_2

Claim for petrol is 40p a mile for all mileage that you do - make a note of how many miles and just claim it as travelling expenses, no need to keep receipts.

Yes, you do keep your full entitlement and you just enter all of the figures onto the form of your self employment and your current job and the online form will work it out for you.

It really is very easy to do. Keep a spreadsheet and do it weekly or monthly to keep on top of things and you will not have a problem.

You need 4 columns on an excel spreadsheet. Date, Description, money in, money out. At the end of the year total the columns, one is your income and will go into the income box and the other is your expenses and that goes into the expenses box. Should you earn more than 15k per year you will need more details expenses but these will not be too difficult as you are only working for yourself and not buying/selling so please do not worry too much.

Also, HMRC are really helpful and you should not be scared of ringing them for advice if you get stuck. Have you considered paying your Class 1 NIC's although you are not earning 'enough'? I pay mine because you are then keeping your NI contributions up to date for sick pay, JSA, Maternity Benefit and your Pension. It is only around £2.10 a week so have a look into this - but this cannot be an expense so do not enter it onto your books.

It might be easier if you buy towels and suits just for your job, likewise toiletries for after you have been swimming and things you might buy for the kids to use that the pool does not supply. Anything that is business related you can add as expenses.

When you get the first form you'll be wondering why you was ever worried, I promise, it really is easy and HMRC at at the end of the phone if you ever need them. The form looks very daunting and is about 40 pages long but you'll only have to fill out your name, address, tick a box that says you earned under 15k and 2 boxes on one page near the back!! Even if you earn over 15k you'll probably have to fill in just 4 or 5 boxes on that massive book that comes through.

Oh, and don't forget to claim for telephone calls if you have to make them to clients.

Good luck.

blue_monkey_2

Also, you do not need mega detailing, all you need is to keep the receipt with the money you have been paid and put it on your spreadsheet. All the form will want to know is how much you have been paid (cash in).

File EVERYTHING in a lever arch file and give EVERYTHING a number starting 1, 2, etc... for the next year I do 101, 102, the year after 201, 202, etc... This way you can go back to anything for easy reference should you ever need to. I even do one for petrol so I'lll have a piece of paper filed that says I have claimed 30 miles @ 40p = £12.00 and this will give an explaination of the £12 I have claimed in expenses should they ever ask to look at your receipts. You do not need to keep petrol receipts but I do put: Home - post office - home = 4 miles and things like that.

xnatalie81x

Thanks for that - i feel much happier now! I see you are in herts too - i am cheshunt lol - will def be under 15k and more than likely under the tax allowance!

I hadn't thought about national insurance as i have always paid it on my better paid job - willcheck my 'normal' teaching job and see if i pay it on that but i doubt it as only £116 mth

blue_monkey_2

Ah, we are in Stevenage now but hubby is from the X!! Are you teaching up at Grundy?

You start paying NI at around £82 a week so I do not think you'll be paying it. It is really easy to start paying yourself and is always good to have as your pension contributions are always paid. Just give the IR a call. Do you get Child Benefit for any children because your pension will be covered then, if not then do pay it else you'll be short and you'll get a letter asking you if your want to 'top up'. But it covers you for SSP and Maternity as well.

How old are you and do you have children? You may be able to get Tax Credits/HB/CTB as well if on a low income.

xnatalie81x

yeah main job is grundy then the self employed bit is for cheshunt sc. I do have 3 children and get tax credits and housing benefit etc etc. Although this will drop as my partner/kids dad is due home 14th sept which makes all this working worthwhile as he is childcare. He would find it v difficult to get a job so makes sense for me to work. I will not do ft though cos i know him - i will still be expected to do everything else as well as work! Or he will declare that he wants to go back leaving us stuffed for childcare and me giving up my job. (i have experience i left ft trainee prob officer job in april)

I dunno what to do about ni as i have always earnt enough to pay it. Now my earnings will total about £110-120 week for 38 wks and £176 for 6wks(3 wk summer, 2 half terms) the rest of the 8 weeks(3 wks summer 2wk xmas 2wk easter and 2 wks i have lost somewhere lol) will be just £26 week so £10 mth is quite a lot off my wages for me and may have to wait a yr or 2 till im in a better position

blue_monkey_2

It will be worth enquiring about the TC though, you get more as a couple than as a single parent, plus more HB/CT allowance too - never assume you'll be worse off as you might get something.

You say the kids dad is 'due back' and then he might 'go back' I was not sure what this meant, do not know what to suggest about being too nosy, but it is always worth checking to make sure you are getting what you should.

xnatalie81x

I have already mentioned it on another thread so a search would make it all clear., but he is in Her Majesty's Prison - makes more sense lol