If I send out leaflets, will the tax man get me!?

[~shelley~]

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]

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

 

[caz3]

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~]

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

 

[ADiva1]

Better to be safe than sorry. Its a small price to pay. You need to be insured too.

 

[caz3]

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*]

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]

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*]

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]

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]

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]

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.

 

[loo]

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]

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]

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]

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]

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]

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]

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]

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