Going self employed

Kirstymc89

Hi everyone looking for some much needed advice I have just left being an employed hairdresser to self employed renting a chair! I had worked for 15 years in the same salon and just did not enjoy it anymore hence the change! This sounds very silly but I have no idea how self employment all works, could anyone please advise me with what I do now for example do I need an accountant right now or financial advisor? 

Do I pay tax or vat for this first 12months ( I have heard different things)
do I need to tell anyone that I have now went self employed? 

Thanks in advance 

J_B

Avoid vat till your turnover gets to £85K (current rules) otherwise 20% of your income goes straight to HMRC.

You don't *need* an accountant per se, but as you "have no idea how it all works" that may well be a good idea.

You will only have to pay tax after you have submitted your first tax return, so make sure you have the money to do so.

Keep receipts for everything.

Don't forget insurance - you don't want to get sued when the colour comes out wrong!!!

MalMonroe

You could register with HMRC as self-employed. I did that in October 2019 but as yet have not earned enough to pay any tax as my income so far has been under the personal allowance - although I have submitted the required returns. In respect of tax, once you register, HMRC will tell you what to do. Registering online is easy to do - if you don't have an HMRC account as yet you can open one - everyone can, whether self-employed or not - and then advise HMRC that you're now self-employed.  

As J_B says, keep receipts. And also keep meticulous records of incomings and outgoings. If you can use a spreadsheet, that's the easiest way. If not, you can just use a table. 

Here's some info from the government - https://www.gov.uk/working-for-yourself

and some more info here :  

https://www.simplybusiness.co.uk/knowledge/articles/2021/06/going-self-employed-in-the-uk-a-self-employment-guide/

Good luck! 

[Deleted User]

Also, be aware of how your new status will affect your financial affairs regarding mortgages and other credit applications because it will have an impact.