Hi, im starting up as self employed. Ive just been looking into registering with the tax place (HMRC or something) and I find the info' a but vague.
Firstly, do I pay tax on my income separately from tax on my business profit? I plan on opening a business account and paying myself for the hours I work . Or do I pay tax on everything in one go? Reason I ask is that I thought that labour costs were a business expense ?
Also, although its unlikely that I will reach the VAT threshold, you never know, is it best to be prepared and up my prices by 20% incase I have to start paying it later on and dont want to increase my prices ?
super confused
do I also HAVE TO pay petrol expenses to myself at 45p per mile ?
Firstly, do I pay tax on my income separately from tax on my business profit? I plan on opening a business account and paying myself for the hours I work . Or do I pay tax on everything in one go? Reason I ask is that I thought that labour costs were a business expense ?
Also, although its unlikely that I will reach the VAT threshold, you never know, is it best to be prepared and up my prices by 20% incase I have to start paying it later on and dont want to increase my prices ?
super confused
do I also HAVE TO pay petrol expenses to myself at 45p per mile ?