Help! Really stressed out

[hannahgreetham]

HI EVERYBODY,

I am getting really stressed about everything, I am 16 and in October once I have qualified I am starting up my own mobile nail service to do China Glaze Manicures and Gelish Gel. But the thing is I keep getting confused about tax, vat and NI. I know I will have to fill out a self employed form to show I am that. I am also going to get insurance with babtac which is £49........ But the thing thats really confusing is I dont know how much I would get taxed and how much NI is ??? Say I was earning £7000 a year how much would I keep ??? also what age do you have to be to get working tax credits does anybody know???

many thanks if anybody can help

 

[nikkib]

If you have no children or disabilities then you will need to be 25 before you claim tax credits.

You will have your personal allowances which is around £8000 i believe. You wont pay tax on that, NI I'm not to sure on.

I used to just keep 20% of my money then I knew that I would have enough to cover it.

 

[effie]

HI EVERYBODY,

I am getting really stressed about everything, I am 16 and in October once I have qualified I am starting up my own mobile nail service to do China Glaze Manicures and Gelish Gel. But the thing is I keep getting confused about tax, vat and NI. I know I will have to fill out a self employed form to show I am that. I am also going to get insurance with babtac which is £49........ But the thing thats really confusing is I dont know how much I would get taxed and how much NI is ??? Say I was earning £7000 a year how much would I keep ??? also what age do you have to be to get working tax credits does anybody know???

many thanks if anybody can help

If you go to the tax credit online you can check to see if your able to claim and there is also an online calculator. Hope this helps

 

[umvemve]

You would probably get to keep most of that. Don't worry about VAT - it doesn't apply until you are earning WAY more. NI payments are only a few pounds a week. Quite a good habit to get into is to put aside a quarter of everything you earn for tax purposes. That way, if you earn more than you think then you will have enough money to pay your tax. I would suggest that you get yourself an accountant - they will sort everything out and it only costs around £100 (which is tax deductable anyway). I found Tax Assist accountants very good and reasonably priced?

 

[hannahgreetham]

You would probably get to keep most of that. Don't worry about VAT - it doesn't apply until you are earning WAY more. NI payments are only a few pounds a week. Quite a good habit to get into is to put aside a quarter of everything you earn for tax purposes. That way, if you earn more than you think then you will have enough money to pay your tax. I would suggest that you get yourself an accountant - they will sort everything out and it only costs around £100 (which is tax deductable anyway). I found Tax Assist accountants very good and reasonably priced?

thank you thats really good advice, I will keep having a think aswell x

 

[Beansy]

You will pay tax on anything that you earn over the personal threshold which is £8,105 (this tax year). NI differs depending on what type you pay but it's usually £2.65pw plus a percentage of your profit (depending how much you earn).

I can see that Vetty answered one of your earlier posts and she's written very clearly how you calculate your profit. Have a look back at that

All of your other questions are answered on the business link website and the direct.gov website

Have a read below, this tells you about what you need to do when becoming self employed.

http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858805&r.s=tl&topicId=1074454203

As you're 16 you should get in touch with Connexions or The Princes Trust as you'll get support from them

 

[deanosnana]

I've merged the two duplicate threads...

 

[umvemve]

thank you thats really good advice, I will keep having a think aswell x

No probs, they do a free consultation where it is all explained

 

[Zooks]

I have to say, even at 28 Im very new to self employment and its hard to know where to turn.

Ive only been in business a few months and had thought I would only be paying tax on what I paid myself, as I was paying myself a pittance whilst paying off the business loan I had only put minimal amounts near by.

I have now learnt you pay tax on the profit of your business despite what you are physically paying yourself. Is this correct?

I have been on the HRMC website as they are meant to do courses but all of the ones listed near me in Devon are now not being provided. So frustrating.

I am looking into taking a business course next year, I take it I would learn a lot through this?

Currently I have been putting away 20% of the "wage" I was paying myself which I obviously need to change. Do you geeks do this monthly and calculate it each month or do an average?

Hope that makes sense and I am sorry for jumping in on your thread.

 

[sarahpoppy24]

Hi! I would suggest a trip to your local job centre! They should be able to give you advice on company's that could help you out! As said above princes trust or connexions but I would go down there they may even have a young people's business advisor or someone like that. Hope this helps x