Made redundant, so now gone self employed help please.

w0rkaholic

Was mad redundant a month ago, so looked into going self employed, lucky enough to get a small contract, so went self employed Monday just gone.

And really havent got a clue what to do next, well I do, sort of, but just need a few things made clear if anyone could help, that would be brill, really dont want to get in a pickle.

Now i get wtc, ctc and hb.
So ive got to give all of the above a estimate of my earnings, hb i have got to give in monthly balance sheet and reciets, which is what im trying to get right.

Now for tax I know you take out fuel for travel to customers, but not your work place?
Is that correct?
I use my car for business and own personal use.

I take out anything I have to buy for buisness?
What about mobile phone, even tho its for business and private.
Rent I pay for premises?

Do I take out my wages, I guess I will be paying myself minimum wage at least to start.

So is my net profit after ive taken out my fuel, my wages, my rent, phone, things i buy, anything else?

I cant see me doing any more than 10,000 this year if that makes a difference?

And where can I get free ermmm expenses in, out, wages, balance sheet thingy lol

I hope someone understands me lol
Thankyou

paulwf

Hi w0rkaholic would it be possible to give some details about the type of business and how it is structured? It is a lot easier to give advice if we know the context.

inmypocketnottheirs

The best advice in these circumstances is paid advice. Find your self a reputable accountant, preferably by recommendation. It is worth meeting with at least three, to be certain of finding someone who you feel is right for you and your business.

Getting everything right, especially at the outset, is crucial. A decent accountant will save you far more than he/she will cost you.

w0rkaholic

Hi basically im doing sewing repairs and alterations.
ive got a contract with a dry cleaners to do there work.

I hire a small work shop, my expenses are mainly zips, cottons, other sewing things,fuel.
Not sure what else to say really

w0rkaholic

i dont think i need a accountant, its not very much money going on lol
im ok with maths and have a good head, just need to cross the t and dot the i s

inmypocketnottheirs

You'd better cross your fingers then!:eek:

w0rkaholic

lots of people do there own books

LouiseSA

HMRC run some great free courses for starting up your own business and completing your tax returns, Google them and have a look, they really helped me.

PlutoinCapricorn

You need to register with HMRC as a Sole Trader. It is also a good idea to register for online tax returns.

It is a good idea to invest some time in looking at https://www.businesslink.gov.uk: they
have a lot of free advice, information and workshops. Many self employed people do prepare their own tax returns.

w0rkaholic

thanks for the info, i will look into it :T

Hammyman

w0rkaholic wrote: »

Now for tax I know you take out fuel for travel to customers, but not your work place?
Is that correct?
I use my car for business and own personal use.

I take out anything I have to buy for buisness?
What about mobile phone, even tho its for business and private.
Rent I pay for premises?

Do I take out my wages, I guess I will be paying myself minimum wage at least to start.

OK..claim mileage at HMRC rates when travelling to customers - 40p per mile for the first 10,000 miles then 25p per mile after. Don't forget you'll need to add business use to your insurance. You're correct in that you can't claim mileage from home to place of work.

Yes you take out things you buy for the business. Equipment comes under capital allowances and doesn't need itemising for the first £10,000. Remember that any equipment bought for the business and later sold is added to the income.

Mobile phone - you can claim the percentage of the use for business or per call if its PAYG.

If you are a sole trader, you cannot claim the amount you pay yourself in wages as an expense.

So is my net profit after ive taken out my fuel, my wages, my rent, phone, things i buy, anything else?

No. Its MILEAGE, rent, percentage of phone use, equipment and materials you buy, business rates, advertising, stationary, postage etc etc etc. Wages are NOT included as an expense.

IF YOU ARE A SOLE TRADER AND NOT A LTD COMPANY: Your wages are the profit after tax deductable expenses and it is that figure you need to tell HMRC, not the amount you pay yourself every week. For example, if you pay yourself £10,000 in wages but the profit is £15,000 then your income is actually £15000 and thats what you're taxed on and thats what you tell WTC. Alternatively, if you pay yourself £10,000 and your profit is £1000, then £1000 is what you're taxed on and what you tell WTC.