business savings

MartinS

Hello, ive been self employed for a couple of weeks now, i just need a few simple answers to my query as im not getting anywhere calling an accountant?

I get paid every week through bacs from customer , i only have the one.

i take all my outgoings off (not including my drawings/wage)

the remaining balance is profit, which someone told me is mine after tax/ni, fair play.

So if i wanted to save part of the profit to roll over for any unforseen expenses and take a lower wage what happens and how can i sort it out?

this got me thinking that the balance of the account should be £000.000 at the end of the week?

Sorry for all the questions.

MartinS

Auntie-Dolly

Basically income-costs=profit. You pay tax & NI on the profit & what you do with it after that is up to you. You don't really get 'wages' so don't think of it like that - you can spend or save the profit as you see fit.

MartinS

Thanks Autie-Dolly

i understand income-costs=profit.... so the profit i pay tax on , so i save after the tax? is this correct.

Auntie-Dolly

yes, that's right.

McKneff

If you only have one customer its a bit iffy that you are self employed.

Has the HMRC cleared this.

Its them who decided who can be self employed, not you or the customer/employer

InsideInsurance

Are you self employed or are you using a limited company? Sounds like you are contracting

Mistral001

InsideInsurance wrote: »

Are you self employed or are you using a limited company? Sounds like you are contracting

Agree. OP need to have more information to give answers.

MartinS

mmmm i was on the understanding that been self employed i could have as many or as little customers as i want,


OP was regarding savings and profit.

Annisele

Self employed people can indeed have as few or as many customers as they want. However, if they choose to have only one customer, it might start to look as though it's really an employment situation. If you really are employed, you can't just choose to call yourself self-employed.

If you're contracting the situation is different again, and you might need to be worrying about IR35.