megaone
Well-Known Member
can i ask with out been too nosie how many of you would really tell the tax man what you earn, this is for all the mobile tech or self employed people???
Paying tax
- Thread starter megaone
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stoney
Well-Known Member
ME, are you mad!!!!
Seriously I don't think you are going to get many honest answers on an open forum for everyone to see
Not declaring your earnings is an offence, a serious one. I don't think you would get many people admitting it.
Seriously I don't think you are going to get many honest answers on an open forum for everyone to see
Not declaring your earnings is an offence, a serious one. I don't think you would get many people admitting it.
bombini
Well-Known Member
I put everything through my books even when I do my friends discounted treatments it all goes through !
I know of a lot of people that do things a bit dodgy and it has backfired on them when they have applied for a morgage, credit card etc as you can't say your earnings are £20,000 but officially only £15,000 as the £5000 you've not declared.
I know of a lot of people that do things a bit dodgy and it has backfired on them when they have applied for a morgage, credit card etc as you can't say your earnings are £20,000 but officially only £15,000 as the £5000 you've not declared.
megaone
Well-Known Member
ME, are you mad!!!!
Seriously I don't think you are going to get many honest answers on an open forum for everyone to see
Not declaring your earnings is an offence, a serious one. I don't think you would get many people admitting it.
lol... ok piont taken, sorry about the question but some people who do not do any other work only this maybe part-time and who dont get any payments from the gov... what can you earn before you have to pay tax...( looking back i think i may have worded this wrong:irked
I am self employed, this is my only source of income and I will be declaring EVERYTHING!! It simply isn't worth the risk for a few quid. And anyway, I want my accounts to tell the full story so that I can see from one year to the next how well my business is doing.
Paying tax may be a pain, but the more you pay the more sucessful is shows you to be.
Paying tax may be a pain, but the more you pay the more sucessful is shows you to be.
megaone
Well-Known Member
you see you have a really good business and well i'm small fry to all you... so do i really need an accountant forsuch a small business...
I'm only part time and I work on my own and most times I don't take a wage at all so don't consider yourself 'small fry' because I'm sure you're not! :hug:
As for an accountant I guess that depends on your book keeping abilities. Mine are pants therefore I pay an accountant to do all the hard work for me but there are plenty of others on here who fill all the paper work out themselves.
In the end though its irrelevent whether you do the books yourself or you pay someone else to do them, either way you have to tell the truth!
I am only a one man band working from home...I do my own books and self assesment...I don't have an accountant.
I was told by the inland revenue to keep things simple....A4 pad with 2 colums...1 for my IN's and another for my OUT's....at the end of every week i write all my in's and all my out's and then take one away from the other to give my profit/loss
IN's would read like this....
Date............£...........Service...........Client...........
12.02.08.......£25........Infill................Miss Smith.......
OUT's would read like this.....
Date............£............Supplier/Products...........
12.02.08........£29.50........Nails plus Beauty/Gels
Your IN's would tally with your diary and your OUT's would tally with your receipts
I was told by the inland revenue to keep things simple....A4 pad with 2 colums...1 for my IN's and another for my OUT's....at the end of every week i write all my in's and all my out's and then take one away from the other to give my profit/loss
IN's would read like this....
Date............£...........Service...........Client...........
12.02.08.......£25........Infill................Miss Smith.......
OUT's would read like this.....
Date............£............Supplier/Products...........
12.02.08........£29.50........Nails plus Beauty/Gels
Your IN's would tally with your diary and your OUT's would tally with your receipts
megaone
Well-Known Member
yep your right, i know i would love to good business and at the min i am still studying and i do work at doing the nails and waxing from home but do plan to do a holistic massage course in sept this year, so i should have everything i need. thanks for listening i think i just needed to rant a bit cos business is really slow....
megaone
Well-Known Member
i didnt think it would be that simple, but that is for the english revenue
i'll have to get in touch with the irish revenue and see what they say...
megaone
Well-Known Member
sorry one more question if you show a loss for the year (i know that its not possible) but you wouldn't have to pay much tax,? right... and is that the only thing that would come out of your earnings
single sparkle
Well-Known Member
Hi Megaone
can i make a suggestion. i am brutal at accounts and as i now have my own salon find it kinda essential to have an accountant. i'm not sure how much work you are doing whether it is just the odd treatment on family and friends or a part time mobile therapist. i'd recommend to call a few accountants and ask if they give a free consultation as you don't know what services will be required. it might be that you can do your own books and then hand them to an accountant to go through at the year end etc. i'm sure some will give you advice over the phone but make sure to get a few quotes as when i started i got completely different quotes.
hope this helps
can i make a suggestion. i am brutal at accounts and as i now have my own salon find it kinda essential to have an accountant. i'm not sure how much work you are doing whether it is just the odd treatment on family and friends or a part time mobile therapist. i'd recommend to call a few accountants and ask if they give a free consultation as you don't know what services will be required. it might be that you can do your own books and then hand them to an accountant to go through at the year end etc. i'm sure some will give you advice over the phone but make sure to get a few quotes as when i started i got completely different quotes.
hope this helps
You can expect to make a loss for your first year...maybe even your second...after that you should really be making something.
If you make a loss then no you don't pay tax....I ain't too sure of the amounts but i think its anything over about 6k when you start to pay tax...(i could be wrong thought, best to check with inland revenue)
If you make a loss then no you don't pay tax....I ain't too sure of the amounts but i think its anything over about 6k when you start to pay tax...(i could be wrong thought, best to check with inland revenue)
megaone
Well-Known Member
thanks guys, i will defo look in to the account, and i see that there a few irish geeks here so they might be able to help
Susie H
Well-Known Member
The thing to remember is that if you don't keep clear, simple, honest accounts and someone makes a call to the tax man, then they will come in and investigate, when they do that they can go back 6 years and average what they think you have taken and send you the bill.
You are expected to make a loss in your first year, you have start up costs and training costs, year 2 you should break even or have a small loss, year 3 you are expected to break even or make a small profit.
Bagpuss has put it very clearly, I would also, keep all your recipts for the month in an envelope, write on the back of each recipt what you bought because recipts fade and some don't do more than give you the total and if you have problems understanding how to fill in your self assesment form, take it down to your local tax office and ask for help, they are happy to help, it makes their job easier if you get it right.
And if you are working more then 16 hours a week you can claim working tax credits and they are happy to accept your own accounts and self assesment tax return as proof of income.
January is always slow but use this time to get you promotions for valantines sorted and start your ideas for mothers day:green:
Good luck hun:hug:
You are expected to make a loss in your first year, you have start up costs and training costs, year 2 you should break even or have a small loss, year 3 you are expected to break even or make a small profit.
Bagpuss has put it very clearly, I would also, keep all your recipts for the month in an envelope, write on the back of each recipt what you bought because recipts fade and some don't do more than give you the total and if you have problems understanding how to fill in your self assesment form, take it down to your local tax office and ask for help, they are happy to help, it makes their job easier if you get it right.
And if you are working more then 16 hours a week you can claim working tax credits and they are happy to accept your own accounts and self assesment tax return as proof of income.
January is always slow but use this time to get you promotions for valantines sorted and start your ideas for mothers day:green:
Good luck hun:hug:
megaone
Well-Known Member
i never thought of that two good dates to piut in your diary. i thi k thats why i wanted to know about the whole tax thing. start of a new year and i really want to make this work. i asked my self where do i see my self in 5 years time and i would love to have a room somewhere in a salon or owned my own place, but i think the fear of the unknown and the next step that has stopped me before now. but i'll say one thing everyone has been so helpfull its nice to know you have friends here:hug: thanks everyone x x
its nice to know you have friends here:hug: thanks everyone x x
If your only working part time,do what I done,give the inland rev a call and book yourselve on one of their workshops, its free , and they show you how to do your tax on line.
I was quite worried about doing ,but it all seemed pretty straight forward in the end and you get a reply straight away if you owe or not.
I started out last year ,filed my tax return form online Sept and was given a rebate within weeks...chuffed!!!
I think in the future if I ever became fulltime, Id probly then consider a accountant,but whilst workin part time and being a part time mum Im sticking to doing it online.
I was quite worried about doing ,but it all seemed pretty straight forward in the end and you get a reply straight away if you owe or not.
I started out last year ,filed my tax return form online Sept and was given a rebate within weeks...chuffed!!!
I think in the future if I ever became fulltime, Id probly then consider a accountant,but whilst workin part time and being a part time mum Im sticking to doing it online.
Hi All
Hope this is not too off the topic but if you arrange to give a percentage to the salon owner and you take a percentage then is this classified as working for yourself so therefore you have to fill in a tex return and keep records?
Or does the salon look after this as per the PAYE system that they may have for their other employees (if they aren't self employed/renting a room/table)
Thanks!
Gail
Hope this is not too off the topic but if you arrange to give a percentage to the salon owner and you take a percentage then is this classified as working for yourself so therefore you have to fill in a tex return and keep records?
Or does the salon look after this as per the PAYE system that they may have for their other employees (if they aren't self employed/renting a room/table)
Thanks!
Gail
Hi All
Hope this is not too off the topic but if you arrange to give a percentage to the salon owner and you take a percentage then is this classified as working for yourself so therefore you have to fill in a tex return and keep records?
Or does the salon look after this as per the PAYE system that they may have for their other employees (if they aren't self employed/renting a room/table)
Thanks!
Gail
Unless you are employed by the salon owner then you are self emloyed and resposible for all your own tax and national insurance contributions. If you call your local tax office you'll find them very friendly and helpful and I'm sure they'll be able to explain to you what you need to do.
