Tax Advice - New Small business start up

soulheavensu

Due to the threat of loosing my job (not eligible for redundancy) i've decided to follow my dream and start my own business dog walking and pet sitting. I've only been going for 3 weeks but already have clients booked in and will take £145 in my first month.

I'm hoping that this really takes off and I can depend on this full time. I want to do everything by the book so that I don't get stung further down the line. How/When do i have to declare tax on these earnings? Do i need a separate business account for my finances and do i need to sign up anywhere as a small business?

I've been doing a lot of research online but there are so many different variations and articles to read. Any advice would be greatly received.

Thanks :rudolf:

absolutereturn

soulheavensu wrote: »

Due to the threat of loosing my job (not eligible for redundancy) i've decided to follow my dream and start my own business dog walking and pet sitting. I've only been going for 3 weeks but already have clients booked in and will take £145 in my first month.

Well done! :T

soulheavensu wrote: »

I'm hoping that this really takes off and I can depend on this full time. I want to do everything by the book so that I don't get stung further down the line. How/When do i have to declare tax on these earnings?

You'll have to register as self-employed with HMRC. Once you do, you'll get a notice to file a tax return. The tax year runs from April to March and tax returns are due by the end of January the following year.

With a business you pay tax on your profits rather than your earnings, that means you can deduct expenses related to your business, for example if you look after dogs and feed them, you can deduct the cost of dog food as well as the cost of driving to their homes to pick them up, etc. If you do some work from home you can also deduct part of your household expenses, utilities, phone bill, etc. Business expenses include things like advertising, marketing and promotion, i.e. using you printer to print out flyers or the phone to receive business calls.

soulheavensu wrote: »

Do i need a separate business account for my finances

You don't need a separate account to start with unless you want to run a limited company, in which case you'd need an account in the company's name.

soulheavensu wrote: »

and do i need to sign up anywhere as a small business?

Register with HMRC as self-employed for tax purposes to start with. Certain businesses require specific authorisation but it's not required for dog walking or pet sitting. May be different if you decided to open a cattery or kennels in your home.

soulheavensu

Thanks for your advice