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Being self employed with no outgoings, will this cause problems?
Comments
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I will be self employed, there will be 2 self employed workers working together (sharing the work).
For all work that we get paid for the money goes into the main business account and then we will pay ourselves (by invoicing the 'business'). For all jobs we will keep 10% in the business account which we will then use for all business expenses.
Would it make more sense for me to pay for my own expenses (although these will consist of a few pens and note pads as most of our design is web based so we dont need to buy anything).
The office is available from 7-11 7 days a week throughout the year. As its such a major uni its open all year
you would be advised to read the HMRC website on partnership tax rules... they are a little more complicated than those for the simply self employed
so e.g. although you can choose to put 10% (or indeed anything you like )into a 'expenses' a/c, the HMRC will want to see all income and all expenses full accounted for and tax paid accordingly.0 -
You might have accountancy fees.The quickest way to double your money is to fold it in half and put it back in your pocket.0
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kr15snw
You are bound to have expenses for the business, they may just be things you haven't yet thought about. You say the office is rent free but what about rates, electricity, heating, telephone, broadband/adsl, etc. I would find it hard to believe that the university will pay for all of these things. If so, what is to stop you running up huge electricity/phone bills etc..? You will also have insurance to buy, indemnity insurance as a minimum, but you will also need liability insurance if you are setting up a business. You will probably also have to pay fees to an accountant to prepare accounts and give tax advice to ensure you minimise the tax you pay.
Other costs you may have could be:
travel costs - to go and see clients
subsistence costs - when you go an see clients
publications you may need to buy to keep you up to date with what's happening in your industry
website - will you have one, if so, you will need to pay to set one up
marketing - how will you advertise your business, and get new clients?
trade bodies - would it help your business to be in one, or maybe join the local chamber of commerce, to improve your networking?
I'm sure once you start you'll find lots of costs that you are actually incurring, that you can set off against your income.
HTH
Dharm9990 -
It's scary, but that's what the office space is there for. It's for ex students (past 5 years) to set up their business's and get themselves started up. There is no time limit and they don't kick you out.
And yes they pay for all the bills. It's unlimited phone / internet / postage / printing etc. We do sign a fair usage policy though to stop us taking the mick.
I have realised there are more things I can claim for, like a section of my internet at home, as well as petrol and some bus fayresGreen and White Barmy Army!0 -
Perhaps you should make a charitable contribution to the university and really muddy the waters.0
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