Immoral Angel's Debt Diary - Part 16,342...

pinkpr1nc3ss

Well done for the party! £60 for one nights work is not bad at all :T Sorry I kow nothing about tax and national insurance. Can someone from the CAB not advise you on what to do?

System

Great news that your party went well Sar well done. Did you get my order? :rotfl:

immoral_angeluk

lennymfo wrote: »

Great news that your party went well Sar well done. Did you get my order? :rotfl:

Was it through a third party? :P

System

immoral_angeluk wrote: »

Was it through a third party? :P

Yeah, Im up for some of that:D

poodlehorse

Sar, being SE really isn't a major hassle. It really isn't bad to fill in and you would only need to pay tax on anything over your allowance and the first X amount of that is at 10% (I can't remember now, and I am hoping that hasn't changed). But I can't see you falling into that bracket, I certainly didn't the last two years. Because of all the genuine business expenses I have had my profits have not been over the tax threshold and won't be this year either. I am hoping next year things may improve but there has been a lot to do to get things up to scratch. Considering you are having to spend a lot on flyers and stationery and clothes rails I can't see it affecting you. And as someone said, the first year it has to be done by paper but after that you can do it online. I got a letter after my first year saying as I didn't make enough to pay tax I didn't need to put one in the next year but I just phoned them up and told them I wanted to and it was fine. Everyone has a fear of the taxman but both DH and I have found them to be very good and human LOL. We are not talking the same bunch of muppets that do Tax Credits.

poodlehorse

Oooh funny taxman story, my (rather well off) great aunt phoned up the taxman as she was aware that her income from investments now took her over the threshold so she should now be paying tax, lucky her I know. The guy on the other end couldn't believe his ears. Basically told her to forget about it until she got a letter. I bet that story went round the office - someone trying to give them money.

LouiseJ

immoral_angeluk wrote: »

Morning everyone Well A WEEK today I start at the CAB and the girls start nursery.. I'm actually really looking forward to it and I get really excited every time I think about it
Am considering registering as SE today but worried about the logistics of it... will I have to do a tax return as my first party was sat.. will I get a massive bill that I haven't got the money to pay.... _pale_

eeeeeeeeeeeeeeeeek!

OK Sar, this self employment thing is worrying you I can see.

I would register soon (you have 3 months from your start date). How much have you earned in 07/08 from your job? if its below £5220 then you will have some tax allowance to use up still for 07/08 so any AS earnings in this year would be beneficial being included in 07/08 anyway as you wont have any tax to pay on them.

This also goes for next year too, any earnings up to the personal allowance of £5435 are not taxable, this includes employment and self employment so if you earn say £3000 from your job then you will have £2435 of AS PROFIT that you wont pay tax on. Remember it is only PROFIT from self employment that you pay tax on so claim for anything you can think of P.M. me if you are unsure what you can claim.

National insurance is another issue but if your earnings (profit) for the year from self employment is expected to be less than £4635 then you can apply for a Certificate of small earnings exception which means you dont pay any NI.

Hope this helps Sar xx

immoral_angeluk

RIGHT it's all done. I'm registered, and tax credits know about that and the girls starting nursery next week. Now we play the waiting game to see how much tax credits screw us over by. :rolleyes:

Edit to add bits..

The guy from HMRC was really nice actually. He's going to send out an information pack and the certificate to not pay NI along with the one to pay it voluntarily if I want to. Tax credits didn't ask what my estimated income was going to be but will wait and see what the award notice says..

I've estimated my income to be around £3500.. that includes Argos at £1435.20 a year and one AS party a week at £40 a night profit. To be honest I've probably overestimated but at least it gives me a figure to work from.

Relieved that it's all done now... just need to wait and see what joys the tax credit award notice will bring..

LouiseJ

Oh by the way tax rate is now 20% from April 2008 as they have abolished the 10% banding.

immoral_angeluk

I have no idea what a 10% banding is... :rotfl: