A question about being self employed

fozzeh

I have been self employed since May this year. I have informed the NI people but what next? Is all that happens is at the end of the tax year they send me a form to fill in? Or do I need to do anything else?

Also what does this form involve? I have been keeping all of my invoices on file so that I know what has been invoiced and have evidence of it. Is there anything else I need to do? or should do?

Thanks!

POPPYOSCAR

Have you got an accountant? I would advise you to get one if you havnt and dont wait until you get to the end of your financial year.Your accountant will advise you exactly what you should do.I am self employed and I still after 20 years get confused about the tax forms!!
your accountant will be able to advise you exactly what records you should be keeping and what you must do to comply.They will also be able to advise you what expenses you can claim.

Deepmistrust

fozzeh wrote: »

I have been self employed since May this year. I have informed the NI people but what next? Is all that happens is at the end of the tax year they send me a form to fill in? Or do I need to do anything else?

Also what does this form involve? I have been keeping all of my invoices on file so that I know what has been invoiced and have evidence of it. Is there anything else I need to do? or should do?

Thanks!

You'll get your self assesment forms shortly after the end of the tax year (April 2011). You will have until Jan 31 2012 to submit them online, or October 2010 by paper.

You are expected to keep receipts for your business expenses, and a record of all your incoming.

There are lot of additional things you can claim for, such as (if you work from home), proportion of your bills etc.

I do a straightforward weekly/monthly/annual spreadsheet. Basically, keeping full records of all invoices, all all receipts and details of your expenses.

Depending on what your business is, it can be quite straightforward to do your own income and expenditure and then Self-Assessment at the end of the tax year.

You can simply ring HMRC if you have particular queries with what you can put through as expenses.

Can you be more specific on what your business is, it might be that you get more tailored advice that way.

POPPYOSCAR

Deepmistrust wrote: »

You'll get your self assesment forms shortly after the end of the tax year (April 2011). You will have until Jan 31 2012 to submit them online, or October 2010 by paper.

You are expected to keep receipts for your business expenses, and a record of all your incoming.

There are lot of additional things you can claim for, such as (if you work from home), proportion of your bills etc.

I do a straightforward weekly/monthly/annual spreadsheet. Basically, keeping full records of all invoices, all all receipts and details of your expenses.

Depending on what your business is, it can be quite straightforward to do your own income and expenditure and then Self-Assessment at the end of the tax year.

You can simply ring HMRC if you have particular queries with what you can put through as expenses.

Can you be more specific on what your business is, it might be that you get more tailored advice that way.

Have fun with that one!!

POPPYOSCAR

I personally think it best to have the services of an accountant.They know the tax rules inside out.Yes you can do your own but you will not be 100% sure you have done it correctly and you may not find out until a tax investigation is raised against you and then ignorance is no excuse.

A good accountant can save you their fees.

The HMRC cannot possibly be as helpful as everything they tell you will be from their point of view and to gain the maximum amount of tax out of you.

Deepmistrust

POPPYOSCAR wrote: »

Have fun with that one!!

lol. She should be able to actually see someone in her local HMRC office. Never done it myself, (never needed to), but I know of those that have, got all their questions answered.

Deepmistrust

POPPYOSCAR wrote: »

I personally think it best to have the services of an accountant.They know the tax rules inside out.Yes you can do your own but you will not be 100% sure you have done it correctly and you may not find out until a tax investigation is raised against you and then ignorance is no excuse.

A good accountant can save you their fees.

The HMRC cannot possibly be as helpful as everything they tell you will be from their point of view and to gain the maximum amount of tax out of you.

True, but that is why I asked her what the nature of her business was.

Some professional organisations will deal with self employed members, and often have more tailored information about what can or can't be expensed.

It might even be that her income (profit) is still low enough to keep her out of tax - paying anyway, so employing an accountant would be futile.

I agree fully for more complicated cases, or for people who really have no idea/inclination how to do their own books.

POPPYOSCAR

Deepmistrust wrote: »

lol. She should be able to actually see someone in her local HMRC office. Never done it myself, (never needed to), but I know of those that have, got all their questions answered.

I have and they can be quite vague at the best of times!

POPPYOSCAR

Deepmistrust wrote: »

True, but that is why I asked her what the nature of her business was.

Some professional organisations will deal with self employed members, and often have more tailored information about what can or can't be expensed.

It might even be that her income (profit) is still low enough to keep her out of tax - paying anyway, so employing an accountant would be futile.

I agree fully for more complicated cases, or for people who really have no idea/inclination how to do their own books.

yes true

I do all my own books etc. but the accountant knows all the relevant figures that have to go in the returns.