Here we go again. LBM number a million

millionaire_in_training

Life is mad busy milann but it's all good things.

Been to strictly fitsteps tonight. I love that class. So much fun but still end up a sweaty mess.

My work was horrendous today. The place drives me mad. I am so glad I am off for 4 days as my stress levels with that hellhole are way too high. I am working hard to get out of there though. I overpaid £145 last month but also paid £300 cash for my tumble dryer for my self employment. Gutting that I haven't paid the £300 from debt but am speculating to accumulate and all that and profit will be a couple of months away yet. I need to get a spreadsheet done though so I can keep track of costs and spends and call HMRC to get some advice. I'm not sure if I can just do a self assessment at year end or if I will be different as I am also PAYE. I need advice.

I'm watching 'my 600lb life' on television and this young girl's story is so heartbreaking. She has lymphodoemia on both legs and she is just so so badly disabled with her weight. Just makes me all the more determined to keep on my journey. Still can't fasten my dress for DD's party though :mad:. I've only got 2 weeks left. I'm going to do SP again this week and see if that helps. I have 2 full on cleaning shifts as well and I am going to double up my exercise classes next week and also get on my bike as much as can. I only have 1 inch I need to get rid of.

So a cleaning shift tomorrow and my friend who usually does the laundry for this house has asked me to take it this weekend as she wants to get away. I will also have my other laundry but not too much this week. I reckon I will pull in about £150-£200 per month just now and this will rise by approx £300-£400 come August to September. Not going to get too excited about it but imagine how quickly my debt will go if I can overpay by all that :j. I'll just keep on plodding and I'll get there but I want it to be sooner rather than later.

Am shattered tonight and heading to bed now. At least I can lie in until 9am tomorrow as cleaning job at 10. I'm then heading for a cut and highlights in my hair as it is an absolute disaster just now and I'm needing a pickmeup. Have a fab Easter folks xx

Eager_Elephant

millionaire_in_training wrote: »

I overpaid £145 last month but also paid £300 cash for my tumble dryer for my self employment. Gutting that I haven't paid the £300 from debt but am speculating to accumulate and all that and profit will be a couple of months away yet. I need to get a spreadsheet done though so I can keep track of costs and spends and call HMRC to get some advice. I'm not sure if I can just do a self assessment at year end or if I will be different as I am also PAYE. I need advice.

I am not an accountant so please do your own research but thought I would comment as my DH and I are both in PAYE jobs and are also registered as self-employed.


I used to sell books on Amazon and do mystery shopping hence why I registered, I hardly do anything at the moment but have kept registered just in case we change the way we run our smallholding (DH has it in his name).


You can register online with HMRC as self-employed and you must do it within so many months otherwise you get a fine.


You know the tax years already but if you registered from mid-March for instance then your first Tax Return would be mid-March to 5th April (if you decide to run with financial years rather than a different accounting period).


Paper tax returns are due in by October of the same year as the financial year ends and online returns are due by 31st January of the following year.


Some people wait until 31st January to file as they then don't pay the tax until then.
I prefer to file my tax return as soon as I can otherwise I might forget something important!!


Any losses you make can either carry forward to the next financial year when hopefully you will make a profit but you would pay less tax or you can offset it against tax paid in your PAYE job.


Not sure how much you earn in your PAYE job but will assume over £10,600 so any income you get from self-employment will be taxed at 20% so ideally you need to start putting money aside ready to pay the tax bill.


If you are in the higher tax bracket (40%) or near it then any self-employment profit could be taxed at the higher amount.


There are lots of ways of legitimately paying less tax so you could speak to an accountant and see what they suggest.


Of course you could also consider setting up a limited company but that has other rules and regulations to follow.


Good Luck with your business venture!!!

Chocforever

Eager Elephant is correct; just register with HMRC as self employed. If you type into Google "HMRC register for self employment", a link comes up for a short online form to complete. This puts you on the list of people who need to complete a tax return.


The self employment does not affect your PAYE code and your employer won't know you are also self employed.


Good luck with the new venture.

Chocforever

I was just thinking that often people who work from home deduct some of their household utility costs against their taxable income (proportionate to the space their office takes up, say 10%). However, your business sounds like it will be energy intensive. Is there a way you can measure the amount of electricity you will use for the business - e.g. one of those smart meters that some of the power companies give away, or check the meters before and after you use the washing machine/tumble dryer a lot on a particular day.

millionaire_in_training

Thanks for the advice guys. I'll get registered. I'm starting officially this weekend but I won't actually get any money until end of month. So from what I can see I will be liable for next tax year but not this one. My earnings will fluctuate lots, especially during winter. I'm going to start keeping books as I will be able to claim mileage and petrol costs as well as offset some housing costs as I will be doing some stuff from home. I've been cleaning today and now I'm doing laundry . In between times I have been to hairdressers and got my hair cut and coloured. Busy busy busy but all good stuff. If I work really hard today and tomorrow then I will have Sunday and Monday to chill

No shopping or anything done as I want to empty my freezers and cupboards before I buy anything. I'll need to pick up milk and potatoes but not much else. I'll do a menu plan and a list of what food I have in freezers. My kitchen and my bedroom are stuffed full of baking stuff, sweets and crisps for DD's party so I will be very glad when that is over and I get my space back.

Poor washing machine will be going all night but it's all to make my dfd come sooner

millionaire_in_training

:eek: I have done the deed and registered for self assessment. No going back now

in_need_of_direction

Hiya, been lurking and reading. Was wondering if there's a council or local enterprise agency that operates free training for those starting self employment. If so, it wouldn't hurt to go and would also give them a stat to claim.

millionaire_in_training

Good idea INOD I'll look into that.

Worked this morning doing cleaning. Woman I am working for pays weekly for cleaning but am now doing laundry as well so will invoice that monthly.Paid £24 from ASDA today and put £6 away for tax. I'm starting as I mean to go on and will put the tax away each time I get any money. The £24 payment has saved me £72.94 in interest

Washing machine has been on all day and I am delighted to report that most of it has been free due to solar panels :j. Unfortunately as soon as tumble dryer goes on the dial starts to spin. Never mind. Free electricity for some things is better than nothing. Spent £57 in aldi. So much for not needing that much Spent loads on fruit and veg though so I have lots of yummy things to eat as last night half of an Easter egg and various other goodies found their way down my throat. No idea how it happened.

Best go and make dinner now as I am starving

Eager_Elephant

When I first became self-employed, I went on a free course provided by HMRC - it was excellent.


Unfortunately the majority of HMRC local buildings have closed now so not sure if they do the courses but saw this - https://www.gov.uk/government/collections/hmrc-webinars-email-alerts-and-videos


and thought that it might be handy because you can watch the webinars and videos in the evenings.


Good luck with everything!!

millionaire_in_training

EE thanks so much for that. It has cleared up a few things for me. 'm going to stick away 20% of what I earn and hopefully it will not be as much as that once I claim expenses etc. All savings in the bank as far as I can see. It's just having the willpower to leave it in a separate account. I've started this already and will force myself to do it for everything that is earned.

I had hoped to finish all the S/E work for this week yesterday but unfortunately I didn't manage it. I could have kept going late into the night but I waited until today so I could get the use of free electricity. Sun is shining just now so that should be good. Am going to get a wriggle on and finish off the work and also clean up my house. It' not actually too bad but I need to keep on top of it. I've also sorted out the paper plates and napkins in advance for DD's party.