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

[Susie H]

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]

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]

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]

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]

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]

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.

 

[cantrelax]

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]

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.

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]

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!!

 

[Katmoz33]

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]

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???

 

[alana]

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]

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]

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]

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!!

Cheers xxx

 

[laylah]

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.