Tax

[dollface_xx]

Hi guys!

I'm starting my mobile business soon and i was wondering about my tax.

Obviously my income will be from a manicure for example at £20.

Will i then need to break this down, as to how much product i used in the treatment? Or can i leave it at £20 for the manicure?

 

[hazeleyes]

Yes it. All needs breaking down. There are lots of threads in the business section here which tell you how to work it out. Most companies will give you a cost per service if you ask them.

 

[dollface_xx]

Thanks. Are you able to link me to any? I'm new to this forum!

 

[hazeleyes]

Hmmmm
I'm not sure how to link bit if you use the search box which is too right if your in a computer just type in keywords like tax, cost per service, hmrc etc that should bring it up

 

[dollface_xx]

Fab! Thanks.

 

[Salon Tax]

I run a firm specialising in providing tax services to the beauty industry so if you have any questions, please let me know as I'm happy to help

Helen x

 

[kankan]

Oh no really!!!! I thought it was just a case of income and outgoings! No idea I had to break it all down 😥

 

[squidgernetball]

You don't have to break it all down. It makes sense to work out for yourself the cost per treatment, but in it's simplest form, the tax office want two figures from you - incomings and outgoings - assuming you are a sole trader!

Vicki x

 

[lisa.sharrock]

I don't break anything down either. However, I did have to do all that when doing my business plan before I started my company but after it's just in/out/mileage.

I'm a sole trader and just have spreadsheets from my accountant with mileage, income and expenditure. The information I put into this spreadsheet then works out my profit and loss and also assesses how much each client spends, logs all my treatments given and products so I can do a bit of a analysis at the end of the year to see what treatments are winners and how good my clients are to me (£££!!)

 

[Tantastic86]

I don't either. The tax year 13/14 was the start of simplified expenses for self employed people.
There's lots on it on hnc, makes it easier to understand what you need to write etc and keep. But basically it's a basic expenses and income books x

 

[hazeleyes]

Oh even better!! But to know how much profit you make (for personal use) you would still need to break it down...

 

[kankan]

Wouldn't you just take receipts and insurance etc off of income and that's profit??

 

[lisa.sharrock]

It's just income minus expenditure = profit? Surely?

Unless I'm doing it all wrong??

 

[BannerPenguin]

It's just income minus expenditure = profit? Surely?

Unless I'm doing it all wrong??

If you wanted to get technical:

Gross profit is the price of service minus cost of product used.
Net profit is then minus all other expenses. Petrol. Wages. Insurance. Rent etc etc.

 

[Steph86]

It is income - outgoings= profit or loss. This is what HMRC want to know, with clear evidence for out goings.
Breaking it all down is so you know you will make x amount on a set of nails or x amount on a tan. To make sure your price list/hours/products etc you are charging accordingly.

For example a mobile tan at £8 using a premium brand of tan, is not worth using £5 worth of fuel, products, disposables, & your time. There is clearly no point as you'd be working at a loss. Or what ever service you are offering. Which by the looks of facebook / gumtree ads not everyone takes the time to work out.

Xx

 

[lisa.sharrock]

If you wanted to get technical:

Gross profit is the price of service minus cost of product used.
Net profit is then minus all other expenses. Petrol. Wages. Insurance. Rent etc etc.

Yep, got all of that, thankfully the software my accountant provided works it all out, all I have to do is enter the ins/outs.

 

[lisa.sharrock]

It is income - outgoings= profit or loss. This is what HMRC want to know, with clear evidence for out goings.
Breaking it all down is so you know you will make x amount on a set of nails or x amount on a tan. To make sure your price list/hours/products etc you are charging accordingly.


For example a mobile tan at £8 using a premium brand of tan, is not worth using £5 worth of fuel, products, disposables, & your time. There is clearly no point as you'd be working at a loss. Or what ever service you are offering. Which by the looks of facebook / gumtree ads not everyone takes the time to work out.

Xx

Steph, don't even start me on this. It's a well documented pet peeve of mine... Some people just pluck out a figure from the air without doing a cost per service.