Working Self Employed & Tax etc

[emanresu007]

Hello,

I am interested to know the details about starting a business regarding tax etc.

Say its the start of the tax year and my business, I havent registered it yet, but have recieved £6000 in orders, paid into my own bank account, at what point do i need to be register my business in order to claim expenses?

can i claim expenses if im not VAT registered? are expenses just the VAT back.. is that right?

i have been on the tax site but it doesnt really summerise the process in real language.

 

[quality]

Inland revenue is your next phone call

 

[emanresu007]

you must be able to see the number because i cant find it

 

[SimonG]

Tax help and advice for small business from HMRC | Business Link

 

[SafeGasInstall]

HMRC monitor all forums and phone calls , you know tax man never sleeps pal he is always looking over your shoulder !

go and speak to your accountant , he'll help you 🙂

 

[SafeGasInstall]

Tax help and advice for small business from HMRC | Business Link

never seen this before whin you go to get in touch the hall screen start shaking .......lol they must be desperate got cash😉😉😉😉😉😉😉😉

 

[emanresu007]

i dont have an accountant, because i havent set up the business yet, besides they cost about £50. im gonig to watch this link, and if its any good i will understand everything to do with the subject and ill have no further questions, looks quite good so far...🙂

 

[SimonG]

Wouldn't mind the details of an accountant for £50 🙂

 

[royston]

Wouldn't mind the details of an accountant for £50 🙂

Thats what i thought ! maybe we could get a bit more off that with a group booking !

 

[SimonG]

Thats what i thought ! maybe we could get a bit more off that with a group booking !

£5 a head for ten of us, cheap at half the price.

 

[mickie]

you have 3 months to register your business from the date you started up.. you wont be asked to pay any tax untill you have a full working tax yr in..

expenses come off what you've earned, the ammount left needs to be told to hmrc, over 8k and you need to be paying tax which they'll tell you about..caliming vat back only happenes if you're vat registered, if you have a big turnover, if not you cant obviously claim vat back

 

[mickie]

you also say you havent got an accountant because you havent registered your business..

yet you are trading ? unless you havent been going more that 3 month, if i were you i'd watch my back..

 

[WaterTight]

is it 8k from this year?

 

[mickie]

yeah, 1 good thing this government has done

 

[CES]

I would be thinking hard about setting up a business if you think spending £50 on an accountant is too much. There are a lot of pitfalls to be prepared for and a lot of additional expense if you go Ltd. Annual Company accounts, Self certification, Annual return, VAT returns if you're VAT registered, a PAYE system to pay yourself/ employees, Public liability, employer liability , Professional indemnity (optional), and that's just on the paperwork side.. You've then got to buy a van, tools, stock etc.. You get the drift?
Seriously mate, if you really want to go for it, don't just jump in. Talk to accountants, HMRC, business link (or whatever they're called now) and other guys in the trade.
Get yourself sorted out with good back office systems from day one. Theres nothing more disheartening than finding out you did something wrong and you get hit with penalties from the tax man.