insurance & registering

[laurab71]

Can someone help out on this matter please as it is causing a bit of a disagreement in the family. I will try to explain it as clearly as i can.
I have been a mobile nail tech for a few months now and have been insured with babtac from the beginning, but my business has not been registered with the tax office, so really, my business does not exist. So i am now thinking of registering my business as i am doing pretty well & becoming legal.
The disagreement among us is, my family say i should not let the tax know i am trading, but stay insured. So then, why be insured if i am not registered. I dont think i need insurance if my business does not exist. So if someone tries to make a claim, how can they claim against my business if it is not in the system. Will the make a claim against my business or against me personnaly. I want to do things legally, but the family are trying to put me off from letting the tax office know i am trading, so i said there is no point in being insured if my business is not legal, but they say i should still be insured.
What is the point. Can someone help please on this confusing topic.
Laura.x.

 

[Terese]

would you want to pay for insurance through BABTAC if you are not doing any treatments?

You need to be insured to work on your clients and if you are earning and not declaring it, it can cause complications with your national insurance etc. You have 3 months from when you start trading to notify the tax man. Also if you are advertising what would you do if someone rings up....and they are from the tax office!

Not worth the risk in my book. If your working...have your insurance, notify who you need to then you are not looking over your shoulder. If you dont want to work cancel your insurance and dont do any treatments

Its good to read your buisness is growing....keep up the good work and become legal

 

[Vetty]

Basically if you don't register with the tax office you can be prosecuted for tax evasion.... Bit of a no-brainer from where I sit! By insuring your business, and if you advertise, the tax office can find you and they will catch up with you- they always do!

You're right - ring the tax office and get registered.... It's not worth not doing IMO.

 

[skymark]

To answer one of your questions, if you aren't insured and you work on a client and you cause a problem, yes they can personally claim against you.

Equally, if you are a sole trader (just you working for yourself), then you are responsible for your business liabilities anyway. As a sole trader you are liable for your business legally and financially. You can't say that lots of things are the responsibility of 'the business'. As a sole proprietor, you and your business are one and the same.

The other ladies have answered the tax questions for you really well so I would take their advice.

:hug:

 

[Lynne Baker]

by being in the grey economy you affect everyone, including yourself; we all "benefit" from the public purse, which is funded (in part) by income tax revenues.
I can't imagine why your family would condone your becoming a criminal!

 

[rebelrebel]

What would the benefits of not registering be?
Are you working elsewhere, or claiming benefits elsewhere ie dole or whatever? if so then this not good practice and I'm sure you will get caught out somewhere along the line, it's not worth it.

Register your business and do it all above board.

 

[Lucy-Jayne]

As Vetty said earlier, a bit of a no brainer.

You must have insurance and you must register with the tax office. It's not worth getting caught out in either of the circumstances.

At the end of the day though, it all depends how much you declare as to how much tax you pay..........!

HTHs

 

[laurab71]

Thanks ladies. I am going to register, sod my family. They are just thinking of making a few quid so no one can get hold of it. It is me that will suffer in the end & go to jail, not them. So, i am definately gonna do it. I knew i was right about this and not them. I might need a bit of advice about tax and that, as i have no idea at all, so i will be back. Thanks again,
Laura.x.

 

[Hands_Only]

This is a great question thanks for asking it.

I would like to know also if anyone can answer this, I am insured but only to work on uk citizens who are with the army. How would this work with the tax man as I am in Germany with the army and not in the uk but Im insured with a uk company??

Thanks

 

[emily22]

Hiya laura,

Like people have already said - if you are working for yourself you must register with the inland revenue. It doesnt take long and if you are not earning huge amounts you may not even have to pay any tax anyway. You only get a tax bill if you earn over a certain amount (everyone has a tax free allowance). Same with national insurance - you only have to pay it if your earnings go over a certain amount - although id definately recommend paying N.I if you are not paying it elsewhere (eg, another job), this is because its only £2.20 p/w voluntary and it covers you if you end up sick, maternity leave etc..

Like others have said; if you get caught working for yourself without registering for the inland revenue you face huge fines and sometimes worse!
- its just not worth the risk!

You might 'get away with it' for a little while but these things always catch up with you in the end. - Start as you mean to go on - do things thr right way from the begining and it saves you alot of problems in the long run..

 

[Vetty]

This is a great question thanks for asking it.

I would like to know also if anyone can answer this, I am insured but only to work on uk citizens who are with the army. How would this work with the tax man as I am in Germany with the army and not in the uk but Im insured with a uk company??

Thanks

Haven't a clue, sorry!! I'd ring the tax office and ask - they're really friendly these days....!!!!

 

[Terese]

I think you may have to register locally, possibly. Also is your main/buisness bank account british as if it is Im sure you carry on as normal + notify the tax office

 

[loubylou]

Thanks ladies. I am going to register, sod my family. They are just thinking of making a few quid so no one can get hold of it. It is me that will suffer in the end & go to jail, not them. So, i am definately gonna do it. I knew i was right about this and not them. I might need a bit of advice about tax and that, as i have no idea at all, so i will be back. Thanks again,
Laura.x.

Does your family like the idea of a family day out to visit you in jail
all you need to do is find the phone number of your local tax office and give them a ring, just explain that you are self employed and would like to register with them,
they will send out a form for you to fill in and send back,
it is that simply and as has already been said unless you are earning lots you probably wont have to pay any tax for a number of years (until you are rushed off your feet with clients all day every day)
they will also send you information on courses they run for free on how to do book keeping, end of year tax return etc...
good on you for wanting to do things the right way :hug:

 

[laurab71]

Marvelous advice guys. I am now a bit clearer on this situation now you have all enlightened me a bit on all the complicated stuff. Doesn`t sound as daunting either. I will be back if i need anything else.
Thanks, Laura.x.