help,setting up my own buisness.

dazbo88

hello,im a plumber and currently paye.i have been for the last 15 years.
from april ive decided to finally go self employed.i will still be doing some work for my current firm,and i know they pay 20% tax from your invoice to them.i will also be taking on my own work,so i have a list of questions for you.
1 do i need an accountant and are their fees tax deductable,100 % or less.
2 i want to buy a van,i have £5000 to do this.ive been told it will not be 100% tax deductable,so what % will be.i do not want to lease a van yet.
3 is the van insurance,road tax 100% tax deductable.
4 is my public liability 100 % tax deductable.
5 i am registering with corgi,this costs in the region of £450 for the year and runs april to april.is this 100% tax deductable.
6 i have to buy out my gas registration from my employer.this is £1350 and i have signed a form to do this if i leave.it is common practice among plumbing firms in york,is it legal and is this 100% tax deductable.the £1350 is the cost of the exams and the wages paid to me while i was on them.
7 is the petrol 100 % tax deductable.
8 i want to work for firms and do private work as this will keep me below the vat threashold.should i register with vat any way.
9 i have always paid into a pension with the j.i.b. its a plumbing pension where i pay 3.5% of my wage and my employer has to pay 7%.can i keep paying this,is it tax deductable.
10 i assume tools,clothes etc are 100% tax deductable.
11 what national insurance do i pay.i think i will pay the 2% but do i have to pay 8% at the end of the tax year or is this optional.
and finally,can i buy the van,and other things before april and put it onto next years tax,as of course i will need these things before i start.
anyone with any info,thankyou in advance.cheers.

dunstonh

i will still be doing some work for my current firm,and i know they pay 20% tax from your invoice to them.

I dont know if there are specific rules for your trade but why would the firm that passes you the client pay 20% tax from your invoice? Is the 20% a referral fee rather than the tax?

1 do i need an accountant and are their fees tax deductable,100 % or less.

You dont need one. Like any role, if you know what you are doing you can do it yourself. For example, you dont need a plumber if you can do your own plumbing. However, what do you know about reliefs, depreciation allowances etc? Fees for accountants are a business expense.

2 i want to buy a van,i have £5000 to do this.ive been told it will not be 100% tax deductable,so what % will be.i do not want to lease a van yet.

One for the accountant.

3 is the van insurance,road tax 100% tax deductable.

One for the accountant.

4 is my public liability 100 % tax deductable.

It is a business expense.

5 i am registering with corgi,this costs in the region of £450 for the year and runs april to april.is this 100% tax deductable.

I would think Corgi is acceptable as a business expense.

6 i have to buy out my gas registration from my employer.this is £1350 and i have signed a form to do this if i leave.it is common practice among plumbing firms in york,is it legal and is this 100% tax deductable.the £1350 is the cost of the exams and the wages paid to me while i was on them.

I would guess not as that is all linked to your employment and not self employment.

7 is the petrol 100 % tax deductable.

One of the accountant.

8 i want to work for firms and do private work as this will keep me below the vat threashold.should i register with vat any way.

Probably not but an accountant can advise you on the pros and cons.

9 i have always paid into a pension with the j.i.b. its a plumbing pension where i pay 3.5% of my wage and my employer has to pay 7%.can i keep paying this,is it tax deductable.

assuming sole trader, no. Pension contributions are paid net of basic rate tax and the tax relief is put back on top of pension contribution to reclaim the tax paid. If you are a limited company then its different.

10 i assume tools,clothes etc are 100% tax deductable.

wrong assumption. Tools dedicated to your profession may be but clothes are not unless they are in relation with safety. Certain items may be acceptable.

11 what national insurance do i pay.i think i will pay the 2% but do i have to pay 8% at the end of the tax year or is this optional.

class 2 is paid four weekly and class 4 depending on what you earn. You may or may not pay at the end of they year depending on what you earn. You may find you have to pay in advance.

can i buy the van,and other things before april and put it onto next years tax,as of course i will need these things before i start.

Depends on your business year. Your first year doesnt have to be a calendar year though so that shouldnt be a problem.

Some of the questions you have asked may have two answers depending on how you or your accountant record things. I'm sure you have come across bodge it jobs in your profession where someone that hasnt got a clue gives it a go and makes a right mess of it. Well, if you dont use an accountant you are at risk of doing the same. The questions you ask, assumptions you make and the wording you use suggests that an accountant would be money will spent.

Brian_the_gas_man

For some reason this thread's been posted twice.

I work in the same trade - and gave some details in this thread
http://forums.moneysavingexpert.com/showthread.html?t=657215