How do i create an invoice to be payed?

faringdon

If i get payed, then i think i'm going to just have to write a paper letter to HMRC and tell them "i earned  some money which i need to pay tax on, please advise how do i do this ?"...because there's page loads of text out there which doesnt seem to mean very much to me. There seems to be a form called "SA100". It seems very confusing when you have to report an earning of money on which tax was not payed.

General_Grant

faringdon said:

If i get payed, then i think i'm going to just have to write a paper letter to HMRC and tell them "i earned  some money which i need to pay tax on, please advise how do i do this ?"...because there's page loads of text out there which doesnt seem to mean very much to me. There seems to be a form called "SA100". It seems very confusing when you have to report an earning of money on which tax was not payed.

You would probably be referred to those pages.  So best to take your time and get your head round it.  If you can earn at the rate of £60K pa you should be able to cope with it.

Grumpy_chap

General_Grant said:

faringdon said:

If i get payed, then i think i'm going to just have to write a paper letter to HMRC and tell them "i earned  some money which i need to pay tax on, please advise how do i do this ?"...because there's page loads of text out there which doesnt seem to mean very much to me. There seems to be a form called "SA100". It seems very confusing when you have to report an earning of money on which tax was not payed.

You would probably be referred to those pages.  So best to take your time and get your head round it.  If you can earn at the rate of £60K pa you should be able to cope with it.

And if the need to keep records and manage the tax affairs is still outside the OP's know-how then engaging the services if an Accountant will be necessary.  This is a cost of operating as sole-trader business.

For now, as a minimum, the OP needs to keep a simple spreadsheet of every expense and every income relating to the sole-trader business.

To ensure that money is available for the tax bill when it needs to be paid, open a new account just for the sole-trader income and pay 40% of everything received into a savings account kept just for tax.  At the end of the year, this savings account should then be in surplus over and above the tax to be paid.

sheramber

The op is only doing a one month contract so not worth using an accountant. 

SiliconChip

sheramber said:

The op is only doing a one month contract so not worth using an accountant. 

Even if there is only ever one payment it might still make sense to allocate some of that money to paying an accountant as the OP really doesn't seem to understand how to proceed. But if there's a possibility of doing more of the same sort of work on a similar basis then I'd say an accountant is absolutely essential, even if it's to get the first year's accounts worked up so that the OP can do it themselves subsequently.