Newly Self Employed... some possibly dumb questions!! Please help!!

Keltic_2

Hi My husband was recently made redundant, he was offered a new position with a company but on a self employed basis. He works in construction.

We need an accountant so we are looking in to that, in the mean time im doing his books.

Im getting receipts for everything and listing them down but do I need to show the VAT element of every receipt?

How do I find out what we can claim for? How do we get money back? is it just at the end of the year?

He has applied for a UTR number and we have been told its a 6-8 week waiting time for it, he is currently paying 30% tax well the company he works for are and has applied to pay Nat ins etc

He has been given a company van but has to provide all fuel and has been told he can claim it back? How does that work?

Is there anything else I should be doing?

I need an Idiots guide!!! Any help greatly apreciated

Thank you

Elaine_Wilson

OK, you asked for an idiot's guide. Hope this isn't too patronising.

Many people bandy words about claiming expenses back but it is better to think of it in a different way.

The tax due is calculated on the net profit of the business. So the first stage is to work out the profit. This is the difference between the total work done and the allowable expenses. The expenses allowed are different for each business but HMRC do give a general summary in the notes to the full self employment pages of the tax return. A pdf file of these notes can be downloaded at this link.

The tax and NIC due is then worked out and compared with the amount deducted at source. Then you get your repayment.

You can ignore VAT unless he is registered for this. He would not have to do this unless his turnover exceeds £70,000.

billybraggtastic

In Scotland, Scottish Enterprise run Business Gateway (don't know what or if there is an English equivilant). They run free workshops which help you understand the do's and don'ts and will also have a business advisor on hand if there are more complex aspects to your business start up.

I'd give them a try if I was new to everything.

John_Pierpoint

Elaine_Wilson wrote: »

You can ignore VAT unless he is registered for this. He would not have to do this unless his turnover exceeds £70,000.

As a small trader, selling his services to companies registered for VAT, he could register voluntarily, especially if he can get an advantageous rate on the flat rate scheme, - you will have to read up on this.
You will also need to be aware of the rules that "badge" your husband as self employed and not an employee.
Finally as he is in the construction industry he presumably knows all about this:

http://www.hmrc.gov.uk/cis/

You will find lots of threads on here for men in the same situation as your husband. If you find something particularly relevant to your personal circumstances, send them a PM (Private Message) and see if you can find out how they got on and any tips they would suggest.

Good luck.

halphy

billybraggtastic wrote: »

In Scotland, Scottish Enterprise run Business Gateway (don't know what or if there is an English equivilant). They run free workshops which help you understand the do's and don'ts and will also have a business advisor on hand if there are more complex aspects to your business start up.

.

We have them in England, call the newly self employed line, they give details of when and where.

Keltic_2

Thank you for your replies, they have given me alot more information for which im grateful.