self employment is it hard to set up ?

InsideInsurance

Giving a box of receipts to an accountant to do your returns you will probably pay £750? The OP is looking at a turnover of ~£8000, paying almost 10% of revenue to your accountant seems very high to me! My 0.7% in accountancy feels high to me and I very low cost base.

charlie-chan

I would keep all receipts, write down any income and keep a month to month cost/bank balance check.

saintjammyswine

Level 1 AAT is intro to accountancy - very useful for people moving into self employment. Look for local College providers,, it is relatively cheap & short course.

barrywhittakerbmw

I would not bother going for an accountant unless I am earning that much! If your earnings are below 5k per year (in the beginning) then you can do you taxes yourself. Once, your earnings cross 5k, enlist an accountant and get your tax done. And, you do not need to pay VAT if your earning are less than 70k.

cainkapow

Self Employment is relatively easy to get into.

The first three months is regarded as a set up stage and you dont get taxed on, so thats some relief money and something not to worry about for the first three months.

Car Insurance would need to be changed, from social and domestic to business, this is hugely important. If your wife crashed while having decals etc on the car then the insurance would be completely void if it remained as social and domestic.

Hairdressers is something that there is lots of, and with penny pinching still very much the rage, not many people have the spare cash to spend on their hair and usually have a friend that will do it for cheaper.

For a business, you will be best to have something that no one else has, a unique selling point. For example, a hairdressers with a cafe too, so people can have a coffee while they wait. It will be an extra cost but it will increase customers, sales and revenue.

Hope this helps

no-oneknowsme

baronsdale wrote: »

She would need her car as a mobile hair dresser does her insurance bills and petrol cost include in expenses

She would need to work out what percentage of use of the car is business and then the other percentage would be personal use.

She would then be able to claim the business use percentage as an expense.

However she would need to ensure that she remembers to inform her car insurer that she is using her car for business purposes and her premium would be adjusted to reflect this.