How much do you put aside for the tax man???

[Bubbles1984]

Hi all, I registered as self employed today with hmrc :green: very excited about starting out on my own... Just wondered though how much I should put aside from each treatment for the tax man? I have searched through posts on here for last two days and found nothing, (i'm sure i've missed something) i've been on business link and hmrc websites but again drawn a blank!! Can't understand though as I would think most people want to plan ahead and not be stung by a huge bill at the end of the financial year!
Any help would really be appreciated.
Thanks
Katie x x

 

[tonitigercharli]

Hi all, I registered as self employed today with hmrc :green: very excited about starting out on my own... Just wondered though how much I should put aside from each treatment for the tax man? I have searched through posts on here for last two days and found nothing, (i'm sure i've missed something) i've been on business link and hmrc websites but again drawn a blank!! Can't understand though as I would think most people want to plan ahead and not be stung by a huge bill at the end of the financial year!
Any help would really be appreciated.
Thanks
Katie x x

Hiya,
Maybe you should make an appt with Business Link hon, they can help you with all that & their advice is free. I know I have to put away for stock, NIC & tax so u need to work out how much u charge per set, cost to you per service (CND website can help with this-fab help) and how much profit you will make. VAT is 15% at the mo (unless anything has changed that Im unaware of!!) so that shud give u an idea. More experienced techs may be able to help u more but thats what I do. If you always put some aside you ll never get hit with a massive tax bill.
Hope this helps
Toni x

 

[Missy G]

Hi ,ask the Inland Rev about their free self employed workshops,theres two you go to, I can remember them saying something about how much to put aside, but to be honest , when your first starting out , your first year your likely to run at a loss ,and depending on how much you earn , if anything like me ,I actually got a rebate in my first year.

If your on the ball ,keep record of everything and you do your self assesment on line straight away ,and it works out that you owe, youve got untill next January to pay anyway .

 

[catsaremad]

You are more likely to make a loss in your first year but if yu want to be caustious try and put away 20-25%. Its probably a bit steep but will not only get you into saving but also could give you a little pot of money at the end of the year to do more training, pay for your accountant (if you decide no to do it yourself) or buy more products.

 

[cabinkel]

I tend to break my weekly takings in 3. One 1/3 is for stock, etc another for tax and ni and the last for me! This seems to work for me!

 

[Bubbles1984]

There's a few really good suggestions there (thanks so much):green: I'm waiting for a booklet or something from the inland revenue- perhaps this will have details of the courses? I like the idea of 20-25% cos I like to save a little.
Ok i'm nearly ready lol wish me luck and thanks again
katie x x

 

[VelvetPatch]

I went on "Becoming Self Employed" workshop 2 weeks ago and it's really helped me understand it all.....highly recommend. In the workbook you get a "Ready Reckoner" which breaks down weekly and monthly profit and esitimates what you'd need to put aside for tax & class 4 National Insurance. This along with self assessement tips and ready-made templates for capturing your records make it a really valuable 3 hrs.
Looks like revenue arrange around 3 a month in each Gov region - get on to them and ask for timetable if you don't receive with your pack.
...and/or do PM me if you want a scan of Ready Recknor.
Wishes x

 

[angelina221]

I've hardly paid the tax man anything-not good :irked:
I have an accountant and i just send everthing to them and they sort everything out.
I am a limited company and when i opened my bank account, they opened 2 for me-one to put my takings in and i have one that i can put some away each week to pay the tax man.
In your first year or so your tax bill won't be that much as you will be paying out more than you are taking in to start with.
I think to put away about 20% is a sensible idea but you won't need to for the first 6 months at least but it's always handy to have some spare for the unexpected.

 

[olabecee]

Hi VelvetPatch----------------Where did your self employed class take place----i.e what company are you talking about?

Thanks

 

[VelvetPatch]

HM Revenue & Customs: Workshops and presentations

Inland Revenue hold the workshops - click/copy on link above to see list of sessions they hold...."becoming self employed" about 2/3 down list.

If you click at top of this page "book for an event" it shows which Gov region office you need to contact to enquire/book through.

Just flying late out door now but will send over scan of "Ready Reckoner" to those that PM'd me tomorrow eve......hubby is now pacing lol! :lol:

 

[Sorella]

hi

i register with hmrc at the start of march and i never received any pack or leaflets, should i have got something?

 

[shell28]

hi

i register with hmrc at the start of march and i never received any pack or leaflets, should i have got something?

I registered at the begining of April and never heard anything i contacted them this morning and my registration has been processed and i am now self employed! I didnt get any info through the post which i thought i would tbh. Ive just signed up to go on one of there classes to help me understand it more.

I have just recieved this morning a letter saying i now need to fill out a tax return.