Advice required for setting up as a Virtual Administrator

Tabby026

Hi I would like to set up as a Virtual Administrator, on a part time basis, but I need to find out the following:

I am 37 years of age and currently get an ill health retirement pension from my local council and pay a little tax am I legally allowed to earn any additional money whilst getting an ill health pension? I would just like to do something on a part time basis for a little additional money if allowed and for my own self esteem, as I have 15 years admin experience that is currently going to waste.

Other questions I have:

Can i claim back any expenses such as heating, lighting equipment etc?

Would I have to complete a self assessment tax form, if so how and when would this need to be done?

Would I need to pay NI?

Would I need to take out insurance.

The other thing I was thinking was working for another Virtual Assistant as a Virtual Assistant Associate.

If anyone could provide any advice on the above it would be most helpful. Would business link provide any help or advice?

Many thanks in advance.

MacsReturns

A few quick notes, as it's near my bedtime:

• you'll need to register as self-employed
• yes, self assessment - form arrives every April, deadline October on paper or January online
• you can claim a tax allowance for your costs like internet, electricity etc, but be realistic
• Yes to NI, you can claim a low-earnings exemption, but you would not build up any contribution record, so best to pay the Class II contribs, about £2 per week
• re your pension, I don't know - it will depend on its specific terms and conditions
• look here for more: http://www.hmrc.gov.uk/selfemployed/index.shtml

Good luck, whatever you decide :beer:

InsideInsurance

There are many options out there.... in some of them you are an employee of another person/ company and just on a 0 hour contract. In others you are self employed.

If you are self employed then you can deduct from your takings legitimate business expenses to give you a profit figure. On this profit you must then pay income tax and national insurance contributions. Some may claim a proportion of the household expenses as a business expense if they are self employed and work from home but how much and how legitimate it is depends on a number of factors - if you have a room dedicated purely to business use then your argument is much stronger than if you just use the dining table in the kitchen.

The SA forms are done annually and must be submitted by the january following the end of the tax year (tax year runs apr-apr) so by Jan 2013 people must submit the form covering Apr 2011 to Apr 2012.

NI is payable, self employed must pay Class II which is flat rate but you can claim low earning exception and Class IV which is calculated with your tax return.

Insurance may be advisable given you are self employed and so anything you own (inc your home) could be at risk if you were sued but it is not a legal requirement.