Going Self Employed in less than 2 wks - confused!?

[Freckles14]

Hi,

I'm going to be working in a salon part-time in 2 weeks, and start 26th. Everything is supplied, products, stationary etc... and will be doing the treatments that are on the price list etc...

All i have have to is turn up. It won't be rent a chair, just a % taken off, which is fine which me.

But.... How do i inform HMRC? I know you can sign up, and fill in forms online... but there is soo many parts, and everything is jumping out on me, and i dont want to fill in the wrong parts, or miss everything out, cause i'll get in trouble with the tax man

Book keeping - what would i put in that? As the salon is providing products...

Do i purchase a business name, even though i'm working under there name, if that makes sense... (see i'm confused)

Oh, and how to you guys save your Tax and NI for end of tax year? Do you's put it in a different bank account or a saving account?

Sorry for all these questions :o

Thank you for any help or advice.
Samantha x

 

[MissConfused]

if you are unsure about anything you can always phonethe government help line for tax - if you do a google search the number will come up. there's also places like business link (again a google search will bring up the number) you could phone up for some advice . i know both the above offer workshops to help you understand the business side of things better.

x

 

[elliebee]

Hi Samantha,
I used to work for the Inland Revenue. It was a wee while ago but the basics haven't changed. I'll try to answer as many of your questions as I can.
Firstly, you have to notify the inland revenue that you will be setting up as a sole trader. This basically means you are working on your own and will not be a company or have any employees.
Your book-keeping will be very simple. Just keep a note of your income (the amount you get from the salon) and a seperate note of your expenses (any money you have to spend as part of the business). Your profit is the amount you take in minus the amount you have spent and you will pay tax and national insurance on your profit at the end of the year.

It sounds like you may not have any expenses if the salon is providing everything so you will only have an income but no expenses. If you do have to buy anything, keep a receipt. I do wonder why the salon doesn't just pay you a wage then you wouldn't even have to register as self employed? You are basically working for them.....

As a general rule you should set aside about 25% of your earnings each week/month to cover your tax bill at the end of the year.

Obviously there is a lot more to this but I didn't want to take up a huge post explaining the full tax system! ! Hpefully I have covered the basics and it doesn't seem so scary now.

The inland revenue have a genuinely good help line (they are not there to catch out the honest workers who just need a bit of advice)
Hope this has helped
Elaine x

 

[Freckles14]

Yes, thank you so much. You've made it sound soo much easier. The whole 'self employed' part sound scary... I just want to do anything correctly, and not get in trouble if i miss anything out :o
I will give them a call, just to clear everything up...
I'll get myself a book keeping book too, so i'll be hopefully ready to rock and roll - fingers crossed

Thank you again :hug:

 

[jes]

Hiya, As mentioned above, you tax return will be simple. Make sure you write down your total takings on the tax return and your % rent as an expense. Every time you pay your % rent make sure you get a reciept and keep it safe. If possible pay this % with a business cheque as the HMRC loves a paper trail