View Full Version : If I send out leaflets, will the tax man get me!?
looby4444
07-12-05, 01:23 PM
hi guys!
i have worked mobile for a yr or so now, but it really started to take off since i did the creative L&P course. im only doing it part time but at the moment its going mad and im earning loads of pocket change!!
my boyf is an accountant and i mentioned to him that i really need to start putting the money away as soon as i earn it so that i can but new stuff, cos at the moment i tend to buy stuff then end up spending the rest on a friday night. i really wanna build up a business and nows seems the best time.
so i decided to do some leaflets n stuff but havent taken em round yet cos im worried that if i deliver to a tax man or something they may start asking q's!
should i get all legal before i take leaflets round?? im insured for everything.
jackiee
07-12-05, 01:27 PM
better to be safe!! all you have to do is register self employed with tax office and then end of year fill in self assement.. obviously having accountant as a boyfriend should take all worry out of what you have to do. remember to keep all your receipts. you have to register self employed within 3 months of starting your business.
you dont want to get on the wrong side of the taxman matey.....get yourself registered! Especially if your advertising
AMb x
I would if I was you at the end of the day you might not even have to pay any tax once you fill your form in as they will take into account what you are paying out on products throughout the year.
Caz xxx
PenelopePitstop
07-12-05, 02:01 PM
Avoid the £100 fine..like the others say get yourself legal...it'll be a weight off your mind
xx
You said your boyfriend is an ACCOUNTANT ... why have you not asked him this question?
It is obvious that you need always to do things the correct and legal way.
looby4444
07-12-05, 02:14 PM
yeah i have asked him, he said not till the business really gets going, as i just do a set every couple of nights. but at the moments its every night so thats why im contemplating it now.
PenelopePitstop
07-12-05, 02:18 PM
yeah i have asked him, he said not till the business really gets going, as i just do a set every couple of nights. but at the moments its every night so thats why im contemplating it now.
you should do it as soon as you start taking money really. there's always someone out there that will be more than happy to snitch on you :Scared:
Good Luck
XX
looby4444
07-12-05, 02:20 PM
i didnt really think about it till recently because since i qualified last month, i was just doing family but now more and more ppl are asking me for them so i just realised that im actually running a business now and not just practicing anymore!
god i feel well silly now!!!:irked:
~shelley~
07-12-05, 02:21 PM
Hiya - can someone tel me how to go about informing the taxman etc - i havnt started buiness properly yet but will be in a few weeks, do i have to pay tax, ni, etc, even if i am not earning as such as i am spending etc, thanx, shelley xx
PenelopePitstop
07-12-05, 02:22 PM
i didnt really think about it till recently because since i qualified last month, i was just doing family but now more and more ppl are asking me for them so i just realised that im actually running a business now and not just practicing anymore!
god i feel well silly now!!!:irked:
don't feel silly...you only know what you know!!
xx
you'll get a tax return......in it you put expenditures...then earnings...mine was a big fat MINUS so i have no tax to pay...but if you have earnt anything....thats what you pay tax on and they will work it out for you if you get the form in in time........Quite normal in the first year to make a loss as its all swallowed up by training and supplies.
Ambx
~shelley~
07-12-05, 02:27 PM
you'll get a tax return......in it you put expenditures...then earnings...mine was a big fat MINUS so i have no tax to pay...but if you have earnt anything....thats what you pay tax on and they will work it out for you if you get the form in in time........Quite normal in the first year to make a loss as its all swallowed up by training and supplies.
Ambx
Thankyou, xxx
Hi Hunny,
All i did is went to see an accountant. Thats it!
He registered me with the Tax office and you dont have to do anything apart from keep records of ins and outs reciepts etc.
If you r only working part time, Its unlikely you will have to pay a lot anyway!
You do have to pay national insurance though so its worth asking about that.
As long as they are informed of what you are doing, they dont mind. That means you can advertise as much as you want and not have that worry.
Sam xx
looby4444
07-12-05, 04:32 PM
you'll get a tax return......in it you put expenditures...then earnings...mine was a big fat MINUS so i have no tax to pay...but if you have earnt anything....thats what you pay tax on and they will work it out for you if you get the form in in time........Quite normal in the first year to make a loss as its all swallowed up by training and supplies.
Ambx
thank for the advice!!!
i will get my boyf to sort it for me, my own in house accountant!! tee hee...hes gonna love me
im also gonna set up doing parties with his sister for kids, can this go through the same accounts or is that gonna get complicated??
lou x
extensionten
07-12-05, 04:56 PM
i didnt really think about it till recently because since i qualified last month, i was just doing family but now more and more ppl are asking me for them so i just realised that im actually running a business now and not just practicing anymore!
god i feel well silly now!!!:irked:
No don't feel silly.... glad I saw this, I was thinking the very same thing!!! But you get caught up in learning, practicing, slowly you start to charge a bit, then you get lots of people and hey you have a business!! and it shocks you to realise you actually take some money and not just hand it out all the time!!.... right wheres that number?:biggrin:
looby4444
07-12-05, 05:00 PM
spot on kirsten, it hits you in your face that your not just a college practicer!
thanks hun dont feel so daft and blond now!
yes wheres that no.....
I don't want to be 'goody two shoes' here but I hope all you mobile Geeks (and the majority of Geeks are) are tax 'legal'!
As soon as you recieve a payment it is income and taxable! Apart from the moral and ethical issues, how do you know that an upset client won't call that freephone number in every newspaper; you may be advertising to a Tax Inspector; a bitter technician in the same area may decide to tell on you!!!
If your business is small, the chances are that you will have no extra tax to pay as there will be many tax deductable items.
It may be a headache but you MUST be legal. Your self-assessment form must include the 'self-employed' bit. Your local Tax Office actually are very happy to help, not catch you out. You can phone or go into see themand they will help you through it if you can't afford an accountant (or have a friendly one at home)
It is illegal not to declare all your income and no one wants a fine and be the tax equivilent of 'blacklisted' where everything is questioned!
extensionten
07-12-05, 05:58 PM
I don't want to be 'goody two shoes' here but I hope all you mobile Geeks (and the majority of Geeks are) are tax 'legal'!
As soon as you recieve a payment it is income and taxable! Apart from the moral and ethical issues, how do you know that an upset client won't call that freephone number in every newspaper; you may be advertising to a Tax Inspector; a bitter technician in the same area may decide to tell on you!!!
If your business is small, the chances are that you will have no extra tax to pay as there will be many tax deductable items.
It may be a headache but you MUST be legal. Your self-assessment form must include the 'self-employed' bit. Your local Tax Office actually are very happy to help, not catch you out. You can phone or go into see themand they will help you through it if you can't afford an accountant (or have a friendly one at home)
It is illegal not to declare all your income and no one wants a fine and be the tax equivilent of 'blacklisted' where everything is questioned!
:eek: :Scared: :o all of the above!!! great i wont sleep tonightxxlol
cuticles
07-12-05, 09:03 PM
I am seconding what Mum says, just register within 3 months of starting the business, keep your receipts and record of your income, work it and and notify them at the year end. There is £100 fine that they CAN apply, I can't remember off the top of my head what % they have fined. DON'T stress about it - just get it down and concentrate on building your business
Cathyx
~shelley~
07-12-05, 09:11 PM
I actually phoned them today just after reading this thread as i want to advertise soon & i dont want any fines etc & they were brill!! really helpful & gave me info & told me about NI & what to do next etc - its worth ringing them xxxx
kateyork1
07-12-05, 09:12 PM
You'd probably be better off doing it properly anyway! If you are spending more than you are earning from your nails then you ma even end up paying less tax than you are now! They should take into account the fact that your putting more money in than are taking out! I have officially been self employed since feb this year and will not owe any tax as I have put way more money into the business than I have taken out! Hope that helps babes. xx
I Can Earn I Think £4,600 A Year Before I Pay Any Tax And With Having To Buy All My Products And Set Up My Nail Room I Know I Will Pay No Tax. Also I Do Very Little Work Hardly Any Clients Yet So It Will Take Me A Long Time To Earn £4,600.
Caz Xxx:d
~shelley~
07-12-05, 10:34 PM
I Can Earn I Think £4,600 A Year Before I Pay Any Tax And With Having To Buy All My Products And Set Up My Nail Room I Know I Will Pay No Tax. Also I Do Very Little Work Hardly Any Clients Yet So It Will Take Me A Long Time To Earn £4,600.
Caz Xxx:d
I think on the phone today they said £4950 (but i could be wrong - i remember thinking thats more than i thought) xx
Better to be safe than sorry. Its a small price to pay. You need to be insured too.
I think on the phone today they said £4950 (but i could be wrong - i remember thinking thats more than i thought) xx
YES MAYBE I AM JUST GIVING A ROUGH IDEA I WAS NOT SURE IF IT WAS £4,400 OR £4,600 MAYBE IT HAS GONE UP NOW TO WHAT YOU WERE TOLD TODAY!
CAZ XXX:biggrin:
*Glynis*
08-12-05, 12:10 AM
I think the £100 fine is just the tip of the iceberg and just the fine they give you if you send in your Tax Return late. They can catch you for back payment of tax they think you owe going back years and years.
Like everyone has said, you have a yearly personal allowance of approx. £4700 which is the amount you can earn before paying any tax, so that should mean most of us pay nothing in the first year trading if it is our sole job and we are re-investing. You should always pay National Insurance although it is a minimal amount. Don't forget, if you are doing this part time and you already have a paid job, you might already be using up your personal allowance.
An accountant should only charge you around £200 per year to sort out everything. Well worth it. I just give mine a pile of receipts and bank statements at the end of the year and she even fills in the forms for me. There are loads of things she takes into account. If you are running your business from home, there are the heating and lighting costs etc. loads of things you wouldn't think of.
extensionten
08-12-05, 12:15 AM
I have been training for about 1.5 yrs... would they count all my receipts for purchases and training for this time? When you train you dont know whether you are going to do something... it has worked out ok but wot about all the expense getting there?
*Glynis*
08-12-05, 12:22 AM
I have been training for about 1.5 yrs... would they count all my receipts for purchases and training for this time? When you train you dont know whether you are going to do something... it has worked out ok but wot about all the expense getting there?
I think all my training was included in my first year of trading as "set up costs". Its all about income. If you are receiving an income of any sort you should be telling the taxman. As long as you can prove that you have expenses which go against that income there is no problem.
cuticles
08-12-05, 07:58 AM
Rather than this turn into a thread of incorrect information, please ring Inland Revenue up. Remember the economy wants to ENCOURAGE exactly the people you are, entreprenerial and willling to start your own business.
I don't know how many know but there is a government initiative to raise the number of women business owners from the current level to 20% by 2006 (last figure was 15%) and Inland Revenue are keen to talk to people to get tax right rather than beat you with their proverbal stick.
Kate is right, training and set up are all tax deductible and you may be surprised what other costs are also deductible.
Ring them and get legal!!
With best wishes
Cathy Stewart
extensionten
08-12-05, 10:01 AM
Rather than this turn into a thread of incorrect information, please ring Inland Revenue up. Remember the economy wants to ENCOURAGE exactly the people you are, entreprenerial and willling to start your own business.
I don't know how many know but there is a government initiative to raise the number of women business owners from the current level to 20% by 2006 (last figure was 15%) and Inland Revenue are keen to talk to people to get tax right rather than beat you with their proverbal stick.
Kate is right, training and set up are all tax deductible and you may be surprised what other costs are also deductible.
Ring them and get legal!!
With best wishes
Cathy Stewart
I'm gonna ring them right now!! thanx for starting this thread, think we all needed it!
Marilyn
08-12-05, 10:14 AM
yeah i have asked him, he said not till the business really gets going, as i just do a set every couple of nights. but at the moments its every night so thats why im contemplating it now.
I hate to say this but what he has told you is wrong. You have to register with both the tax man and for National Insurance purposes within 3 months and your boyfriend should know this if he is an accountant....you will not always end up paying tax on this, unless you are already employed in another job and getting all your personal allowance against that job, then you will pay tax on all your profit after deductions on the nails business. You do have loads of things that can be taken off the nail earnings as expenses and Capitol Allowances... once again your boyfriend should be able to advise on this. If you are in any doubt then please PM me and I will let you know what you can and cant deduct....I have spent most of my adult life doing accounts a lot of it dealing with Tax and NI and have beeen self employed before too. :D :D
Hello
You should definitley sort out your boyf accountant to get you registered you wont have to pay tax or anything for a while anyway and if you are working part time and not earning that much you prob wont have to pay anything anyway bar national insurance which you can pay monthly.
Its always better to do things this way as at least you will not have to worry I couldnt be without my accountant now as I hate figures.
xx
extensionten
08-12-05, 11:34 AM
just rang business link peops, and they inform me that my training is NOT tax deductable... will be if / when I am registered but NOT all the paying out I've done over the last 1 half years! :sad:
Marilyn
08-12-05, 11:41 AM
just rang business link peops, and they inform me that my training is NOT tax deductable... will be if / when I am registered but NOT all the paying out I've done over the last 1 half years! :sad:
I'd contact the Tax Man on this one as this should come under ''setting up costs'' they will be able to tell you for definite, make sure you tell them that this has been a requirement to starting up the businesss, Sometimes these other bodies can unintentionally mislead people and they also do not always tell you some of the things that can be deducted eg if you are mobile the cost of buying your car can be written off against the business as capitol allowance and all its running costs are classed as expenses.
So better to ask the organ grinder and not the monkey!!!:biggrin:
nails2nV
08-12-05, 01:33 PM
heres a link to the self employed registration form http://www.hmrc.gov.uk/forms/cwf1.pdf
just print this out and fill it in!
extensionten
08-12-05, 02:36 PM
got a "training" course on monday morning with the Inland revenue!!! ooooo s..t, so this is it then!! I will just wait and see what they say and not panic any more!!
Looby you should go on one they sound really informative - they said they go through everything you need to know about setting up etc etc... or ask b/friend lol
cool
Zuise.e
08-12-05, 04:09 PM
Great post - thanks!
I was wondering myself what to do as I put flyers out last week and have 4 bookings. Although I'm only charging a small amount, I guess I'm still "making money" and I keep thinking the people who are coming could be anyone -
1) tax person eek
2) another nail tech in diguise just as big an eek!!
There's no way I'm going to make more than I've spent in the first year, does the amount that you pay for training come off as expenses too?
Debbies Gellies
08-12-05, 04:47 PM
Hi ya, if you are mobile keep receipt of petrol too, this counts as expenditure not just your nail supplies or uniform, you can even keep receipt of hairdresser as you must look good for clients etc.,. ask your fella for all the tips on what counts..HTHs
PenelopePitstop
08-12-05, 04:53 PM
Hi ya, if you are mobile keep receipt of petrol too, this counts as expenditure not just your nail supplies or uniform, you can even keep receipt of hairdresser as you must look good for clients etc.,. ask your fella for all the tips on what counts..HTHs
i found it really hard to tell how much of my tank i used on business and domestic travel, so i keep a spreadsheet of all the miles i do then charge it at 40p a mile and then add that once a month to my expenditure spreadsheet.
xx
Susie H
08-12-05, 06:41 PM
just rang business link peops, and they inform me that my training is NOT tax deductable... will be if / when I am registered but NOT all the paying out I've done over the last 1 half years! :sad:
Excuse me but that is a load of bull!
I Have been self employed for the last 4 years and everything that is directly related to your buissness is in your debit colom.
Its dead easy. you get a cash book and in one column you put down everything you have spent out. training, supplys etc. for the week / month
next to that you put everything you have earned. At the bottom of the page you total both column and then you take one from the other that figure is your pre tax profit. and that is the figure you will be taxed on AFTER your personal tax allowance has been reached. Normaly this figure is in minus for the first 2 or 3 years. Keep all your receipts and write on the back what they are for. The tax man is not a monster, he is normaly very helpfull and the only person who knows what you should be doing, they even have a web site.
Stop panicing and good luck.
Marilyn
08-12-05, 07:30 PM
At the bottom of the page you total both column and then you take one from the other that figure is your pre tax profit. and that is the figure you will be taxed on AFTER your personal tax allowance has been reached. .
Once you get to that profit figure you can then take the cost of your car as Capitol Allowance (this part is worked out by the tax office once you send in your tax return) and you write this off over at least 4 years taking just as much as you need to keep you under the amount that you will be taxed on, any surplus can be carried forward to the next year. The cost of a loan and the interest to buy a car can also be written off this way. EVERYTHING you buy for the car can be claimed eg insurance, road fund tax, MOT, servicing, new tyres, etc etc. If you use it for business and pleasure, you just work out approx how much in percentages it is for both, so if you use your car for say 40% business and 60% pleasure then you can claim 40% of all that you spend on that car against your tax, this part is worked out in your normal expenses column.:biggrin: :biggrin:
extensionten
09-12-05, 04:32 PM
Great post - thanks!
I was wondering myself what to do as I put flyers out last week and have 4 bookings. Although I'm only charging a small amount, I guess I'm still "making money" and I keep thinking the people who are coming could be anyone -
1) tax person eek
2) another nail tech in diguise just as big an eek!!
There's no way I'm going to make more than I've spent in the first year, does the amount that you pay for training come off as expenses too?
I was told NO!!! but I am waiting til monday to see the inland rev and get it from the horses mouth cos that seems like bull *hit if u can't use all the training and products towards expenditure of setting up your business... I have spent a FORTUNE!!!!! let you know.x
extensionten
09-12-05, 04:35 PM
Excuse me but that is a load of bull!
I Have been self employed for the last 4 years and everything that is directly related to your buissness is in your debit colom.
Its dead easy. you get a cash book and in one column you put down everything you have spent out. training, supplys etc. for the week / month
next to that you put everything you have earned. At the bottom of the page you total both column and then you take one from the other that figure is your pre tax profit. and that is the figure you will be taxed on AFTER your personal tax allowance has been reached. Normaly this figure is in minus for the first 2 or 3 years. Keep all your receipts and write on the back what they are for. The tax man is not a monster, he is normaly very helpfull and the only person who knows what you should be doing, they even have a web site.
Stop panicing and good luck.
well they said that FROM the day I register as self employed YES but anything before that date NO!!!! So the ton of money I just spent over 1.5 yrs I cannot count!! well it seems like bull to me to... so like I have said I will go to the revenue and ask on monday at the course!! x cheers anyway.
Zuise.e
10-12-05, 10:23 AM
well they said that FROM the day I register as self employed YES but anything before that date NO!!!! So the ton of money I just spent over 1.5 yrs I cannot count!! well it seems like bull to me to... so like I have said I will go to the revenue and ask on monday at the course!! x cheers anyway.
that's unreal!!! surely everbody spends on training before they become self employed!! they are not going to become self employed then train are they?
Let us know how you get on please.
Marilyn
10-12-05, 10:57 AM
well they said that FROM the day I register as self employed YES but anything before that date NO!!!! So the ton of money I just spent over 1.5 yrs I cannot count!! well it seems like bull to me to... so like I have said I will go to the revenue and ask on monday at the course!! x cheers anyway.
As Helen H said that is a load of rubish about not being able to claim for setting up costs. I have trained and spent money on equipment in the past setting myself up as self employed BEFORE contacting the Inland Revenue and I was able to claim ALL of it so as far as I am concerned you have been given the wrong information. Maybe the person you spoke to misunderstood you, maybe they are not aware that this training was so you could set up a business and for no other reason.
Any big or small company who set up and start a new busines claim agianst their tax for ALL setting up costs.:D
cantrelax
10-12-05, 11:51 AM
Ok guys, heres another question.What if your on benefits and are still only practicing nails on friends and friends of friends. You are excepting money (a small amount per client). Do you have to declare this. If you do, they cut your benefits. But as you are not taking in that much from the nails you end up being left with no money. What would be the right thing to do?
Bagpuss
10-12-05, 12:02 PM
As Helen H said that is a load of rubish about not being able to claim for setting up costs. I have trained and spent money on equipment in the past setting myself up as self employed BEFORE contacting the Inland Revenue and I was able to claim ALL of it so as far as I am concerned you have been given the wrong information. Maybe the person you spoke to misunderstood you, maybe they are not aware that this training was so you could set up a business and for no other reason.
Any big or small company who set up and start a new busines claim agianst their tax for ALL setting up costs.:D
I was told the same thing from the inland revenue..i went to there new business day course..free by them...and i asked if i could put my training in...they said no because at the time i did my training i wasn't self employed..or at least registered as..i can put any further training i have through but not the initial training...i have double checked this with them and they confirmed its correct.
Marilyn
10-12-05, 01:27 PM
I was told the same thing from the inland revenue..i went to there new business day course..free by them...and i asked if i could put my training in...they said no because at the time i did my training i wasn't self employed..or at least registered as..i can put any further training i have through but not the initial training...i have double checked this with them and they confirmed its correct.
Weird that, I wonder how I managed to claim it then, dont understand that!!:confused:
Katmoz33
10-12-05, 01:45 PM
okay just to make this more complicated! what if you have a full time job and are setting up a nail business? i cant afford to leave work untill i have set up my nail room and got enough supplies and training to get me started..what do i do here ? i dont do enough nails at the mo to make a living i am going to charge full price next year....should i got registered?
cantrelax
10-12-05, 02:27 PM
Ok guys, heres another question.What if your on benefits and are still only practicing nails on friends and friends of friends. You are excepting money (a small amount per client). Do you have to declare this. If you do, they cut your benefits. But as you are not taking in that much from the nails you end up being left with no money. What would be the right thing to do?
Anyone???
yeah i want to know the answer to this- i work 4 days a week and have just started getting people wanting full sets etc.
so we too have to register asap??
cantrelax
12-12-05, 10:02 AM
Ok guys, heres another question.What if your on benefits and are still only practicing nails on friends and friends of friends. You are excepting money (a small amount per client). Do you have to declare this. If you do, they cut your benefits. But as you are not taking in that much from the nails you end up being left with no money. What would be the right thing to do?
Please, there must be someone who knows? PM if you like. xxxxxxxx
extensionten
12-12-05, 02:33 PM
Please, there must be someone who knows? PM if you like. xxxxxxxx
ring the revenue and just ask, they are really good with advise! best to go straight to the peops who know! cos it is all getting confusing on here! lol
cantrelax
12-12-05, 04:21 PM
ring the revenue and just ask, they are really good with advise! best to go straight to the peops who know! cos it is all getting confusing on here! lol
Don't know why I just didnt do that in the first place!! :rolleyes:
Cheers xxx
hiya,
you can do both. i currently work part time in an office and have just registered as self-employed aswell. i can earn £4000 & something before i would have to pay tax or NI on my self employed work and my current employed job will not change with regards to tax. if i earn over that £4000 then its £2.10 per week NI and tax would be calculated at the end of the year.
so if your working aswell full time still get yourself registered for your nails and its unlikely it will cost you anything extra anyway untill you earn over £4000 (& something!! i cant remember wat it was) and you will be all legal.
just give them a ring, they are sooo helpfull and really do want to help you. they even told me to ring up about my tax credits as once im doing more hours i could benefit from more working tax credits, the 30+ or something its called.
JUST GO FOR IT!! i feel so much better now im all registered.