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I'm renting a chair - what do I need to sort out?

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Starboltz

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I've sorted out my insurance,and regarding HMR/tax place how do I go about it?

Like do I need to call them once I start?

and how do I 'do the books'?

no idea how the tax and declaration side of it works
 

Haircutz

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https://www.gov.uk/topic/business-tax/self-employed

I've moved this to the Business Forum as you might get a few more replies from the beauty side of SG.

I'd also recommend you check out your local council website for information as they often run free short courses for people starting a new business that you might find useful.

It's up to you how to record payments and store your receipts etc. In the early days, I'd advise to keep it all very simple and write everything down in an exercise book or in a simple spreadsheet, if you prefer that.
 

Starboltz

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Thank you very much :)

I'm just a bit stumped with how to do my own taxes, what expenses I need to record
 

Beansy

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The following links might help-

http://www.wrexham.gov.uk/english/business/business_support/startup_advice.htm

http://businesswales.gov.wales/bigideas/who-can-help

There are quite a few threads on bookkeeping / income and expenditure, it might be worth having a look.

HMRC also run webinars to teach you the basics, they are well worth signing up for. More info-

https://www.gov.uk/government/collections/hmrc-webinars-email-alerts-and-videos#help-and-support

There's also lots of start up websites that give user friendly info-

http://www.bytestart.co.uk/book-keeping-basics.html

http://www.startupdonut.co.uk/startup/tax-and-national-insurance/accounting-and-bookkeeping

HTH
 

PamieD

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Call HMRC within 3 months of starting month. So that means if you start now you have until the end of April to tell them. Anything you have spent now can still be claimed as a business expense, but it's probably a good idea to do this as soon as possible, maybe the start of February when you've sorted out your bookkeeping.

Expenses (part of your outgoings) are anything you spend money on for the sake of your business. Products, insurance, rent, rubbish collection, advertising, leaflet printing, mobile phone, etc. Buy a large A4 book, and a folder. Every week have the left page for sales and the right page for outgoings. Whenever you get some money in then write it down on the sales page and date it, plus say if it's was cash, cheque, credit card. On the outgoings page whenever you spend money then write down what it was (VERY IMPORTANT, DON'T FORGET) and the date again. Then put receipts, invoices etc for that outgoing in the folder as a record. If you take money out of the business account for yourself then write it down as Drawings. When you get your bank statement just check to see all the sales have been banked and that you haven't been overcharged for any expenses.

If you are going to keep a cash float then also write down how much is in it every day in a separate little book. Keep that separate from the sales and outgoings book. Think of it as a second bank account. So say you take out £20 at the start of the month and put it into the float. At the end of the month your main bank account should show all the sales you have deposited, and the float will have any cash you haven't deposited PLUS that original £20. So you can keep as little or as much as you need in the float, you just need to record it all the time.

That will get you through the first few months until you are used to how it works. Then you can move onto a spreadsheet (or just stick to this way, and change to weekly sales instead of daily).

To do your tax return you get your A4 book, add up the sales you took for the tax year and write it down. Then for your expenses/outgoings do exactly the same. Then enter them in the self assessment declaration (they tell you where to enter the figures). Whatever is left is what will be taxed. So take care when you draw out money for yourself, you should leave enough in so that you don't go into overdraft or have to go without a wage for a while when the tax bill comes.

The tax year is the 6th of April to the 5th April the following year.

If you don't fancy doing it then record everything as above and give it to a bookkeeper or accountant to file your self assessment.
 

Starboltz

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Thank all SO much!

Honestly the info has helped so much, I've been stressing so much

I'm going to be working at Burger King part time, and the salon full time until I build up my client base.

will I need to declare the money I earn from burger king, or JUST the salon?
 

squidgernetball

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They'll know all about burger king because you'll be on their books. When you do your return, there's a section to fill in if you're employed - fairly basic info like your earnings for the year etc. They'll all be on your details from bk - then you fill in the self employed section with your incomings and outgoings x
 

Haircutz

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Try not to stress too much.
It's just something new and unknown that will become less scary once you've done it for the first time.

Can I recommend sitting down somewhere quiet to keep up with all your paperwork (receipts, orders, bookings etc.) at least once a day as a routine task, even for just five minutes, rather than leave it and tackle it on an ad hoc basis.

It will become much easier to manage that way and you won't feel anxious about it getting out of hand which can easily happen if you just stuff everything in a tin and ignore it for a few weeks. That's when the book keeping side can suddenly become overwhelming.

A bit like doing your first haircut when you don't really have a clue what you're doing. ;)

You'll be grand!
 

Grace_Hair

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As @Haircutz said. Keep on top of your books!
I haven't done my books since May/June and I keep putting them off because it's been so long which, in turn makes it worse!!
 

surf girl

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As @Haircutz said. Keep on top of your books!
I haven't done my books since May/June and I keep putting them off because it's been so long which, in turn makes it worse!!
Oooof!!! That's gonna be head work! Get on it mun! :eek:
 

BannerPenguin

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Oooof!!! That's gonna be head work! Get on it mun! :eek:
You don't even want to know how long I put mine off for! lol. I end up blitzing it over a couple of solid weekends. Wrong in every way and makes me want to shoot myself every year.
 

surf girl

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Aw god the longest I ever left mine was 4 months it took 7 hours solid to get back up to date, this time I left it 2 months and it took about 4 hours, surprisingly I felt rather relieved I mys of the next day after it was done hadn't realised it was bothering me so much!
 

Grace_Hair

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Aw god the longest I ever left mine was 4 months it took 7 hours solid to get back up to date, this time I left it 2 months and it took about 4 hours, surprisingly I felt rather relieved I mys of the next day after it was done hadn't realised it was bothering me so much!
I'm going to take a day off every 2 months to do it. I am. I really really am. And I WILL do my accounts in that day. I WILL WILL WILL! I won't procrastinate! X
 

squidgernetball

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As @Haircutz said. Keep on top of your books!
I haven't done my books since May/June and I keep putting them off because it's been so long which, in turn makes it worse!!
That's me :(
 

surf girl

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Vic! You surprise me! :eek: @Grace_Hair @squidgernetball i will personally be your accountability buddies! Expect a message ladies! o_O Lol x
 

Grace_Hair

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@surf girl I'd much rather you'd do my accounts for me?!
 

surf girl

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@surf girl I'd much rather you'd do my accounts for me?!
That could be arranged for a suitable price ;) I'm sure an accountant would be cheaper tho lol! You girl's have computer systems too! I'm paper based till last week... shocking... haha x
 

byKaty

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I have box where I stuff my receipts in. My diary I mark in each week rent and what I lifted for that week. Haven't done anything else yet. Maths makes me want to kill myself. Rather stick forks in my eyes.
 

Grace_Hair

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That could be arranged for a suitable price ;) I'm sure an accountant would be cheaper tho lol! You girl's have computer systems too! I'm paper based till last week... shocking... haha x
Actually. It's more the bookkeeping that's the problem!
 

surf girl

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Actually. It's more the bookkeeping that's the problem!
Do u have a record of everything that came in & everything u spent? I just use my appointment book for everything in then go back and on the bottom I write money out so after the recipts are in order I'll write each one on the day I spent it then go back and fill out everything that went out of the bank, then write it on a sheet of paper money in one side out the other and totals on the bottom, then a separate sheet of just totals, it is time consuming but easy to see what's what afterwards, I usually leave the adding up till last lol I hate maths too
 

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