Registering as self employed beauty therapist

[KimT]

Hello,
well a little about me, i am a fully qualified beauty therapist with 5 years in the industry. I have been in my current beauty job for almost 3 years, and as much as i enjoy it and gained incredible experience from it, i cant help but crave for my own business.

I have done a small amount of mobile work on family friends etc..but its getting to the stage where i could possibly increase my takings and actually register myself as self employed.

I am looking for someone to guide me in the correct direction on what i need to do step by step. I have read the information online on the HMRC website, but must admit, it all looks so complicated to me and it is really putting me off.

I want to do more with my mobile beauty, and cannot unless i register myself as self employed. However, i will not be planning to leave my actual employment, my mobile is something i want to do alongside my work in order to save for a house this year.

Any help would be much appreciated, i feel stupid as several of my friends have gone ahead and become self employed, i dont know why im finding it all so complicated ?

:/

 

[virtues2011]

You can still register as self employed even if you have a job that you are employed in. There is nothing new here. Just follow the instructions on the HMRC website.

 

[Successful24]

Call them If in doubt

 

[Zoelouisefarmer]

Called them a while back and they was useles!! Still have no idea what to do, just got a letter through about paying national insurance.. I have no way earnt tbst much to pay it!!! It's all confusing!

 

[jusluce]

Regardless of what you earn you should make NI (national insurance) contributions as they goes towards your pension pot etc. You can earn £9440 before paying tax. Even if your earning 4k per year put it through. Still an earning. You never know when you might need it. In 5 years time for example when you want to buy your first property. Most companies need 3 years plus worth of books for a mortgage or loan. Local job centres/careers advisors are a good place to go for self employed advice. X

 

[Zoelouisefarmer]

I don't mind paying some but the amount they are asking for is silly!! Gonna call them tomorrow hopefully sort something out!

 

[Redduck]

If you're not earning enough to pay National Insurance you can still make voluntary contributions (roughly £10 a month). This will count towards your entitlements if you ever need to claim statutory sick pay etc.

 

[Missy106]

Ye its only about 2.50 a week ive just started paying mine direct debit even though i only earn about 100 a week because you never know when u might need sick pay x

 

[Zoelouisefarmer]

How do I do this?

 

[ProjectPretty]

Interested in the feedback of this thread as in hoping big to register too.


xProjectPrettyx

 

[ButterflyRoom]

If your paying NI through being employed and not earning much self employed you don't need to pay more NI you can get an exemption certificate, until you go full time self employed this doesn't mean your not paying NI because you are through your full time job, HMRC can organise this for you, you do also need to register self employed and keep a record of all of your income and expenses then at the end of the tax yr when you do your tax return you'd need to fill it in to give all your figures for employment (these will be on your p60) and self employment. It's not that simple but HMRC will help you I've always found them really helpful and if they start saying stuff you don't understand or speaking jargon tell them I have a few times and they will get clearer! Hope this helps! I'm no expert but this has been my experience going from being employed and self employed together to now fully self employed and having just completed my first tax return. Just remember make a note of everything and keep all receipts!



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[Zoelouisefarmer]

I'm classed as self employed but I work for a company and I get paid by them at a hourly rate but only if clients are booked in.. I'm so confusd how this is still self employed as it's not my company or clients!! Dunno how I would find out how much iv earnt unless I looked at my bank statements.. Is thst ok?

 

[KimT]

Thanks to everyone for your advice, im glad im not the only one finding this extremely confusing and difficult!
Ive been told that i would need to pay an accountant? is this correct?
From everything im reading up and being told, im getting the idea that self employment doesnt seem to be all what people say it is, as it seems you have to pay out for a lot of things, N.I, Tax, Registering a business name.. an and accountant if thats correct?

I was hoping to register as a self empolyed therapist to earn money, but after reading up on all of this, its actually scaring me! :/

 

[ButterflyRoom]

You don't have to have an accountant I don't but it does help if you know someone with an accounting background that could possibly help around tax return time as it does help, it's quite overwhelming trust me I know, you really shouldn't have to pay NI, unfortunately any profit you make you will have to pay tax on I think it's 20% there's no getting round that but it is only profit hence why it's important to keep all receipts for expenses as these will be deducted first!


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[lisa pink]

I rent a space for nails in a hair salon I work in as a stylist , is there a book to keep these records in or do you all just use a pad ? Really hope I don't get too confused hated maths at school many moons ago x

 

[jusluce]

I don't think alot of therapists can warrant having an accountant.. My partners cost £750 per year!
Register yourself as self employed. If the company you work for are deducting tax from your income and it's below the threshold of £9440, you would be entitle to a refund. As anyone who earns less than this shouldn't pay tax. Set up NI contributions. Everyone should be paying this. Like a few people have said it will goes towards your pot for pension and sick should you need to claim it. Keep a diary of all your expenditure. Courses, products, travel (if your mobile) how much you charge for your treatments, dates and times etc.
Bring self employed does have it's benefits. Flexible working hours, being able to work from home etc. it's a bit of a headache but if you do it properly from the beginning you won't need to worry about the tax man coming knocking at the door. So many people advertise on facebook and other social networks and aren't even registered as a company. I think this is why alot of people don't take our industry seriously. 'Oh she's only painting someone's nails, anyone can do that,' nooooooo! We work hard for our qualifications!
Remember it is illegal to work without declaring it.
HTH x

 

[sanilulu]

I'm classed as self employed but I work for a company and I get paid by them at a hourly rate but only if clients are booked in.. I'm so confusd how this is still self employed as it's not my company or clients!! Dunno how I would find out how much iv earnt unless I looked at my bank statements.. Is thst ok?

Sorry but no one answered this one ...

That's so wrong, you & your employers could get into serious trouble with the Tax office.
So many employers are trying this.
You can only be truly self employed if you are booking your own clients in and you receive the money for the whole treatment, and picking your own hours of work, uniform etc etc ... if it's time you get paid for you should be employed by the company or at the very least if its only occasional days you are covering you should be invoicing the company to get paid - as the tax office could ask you for your records of this as its your tax bill.

Do if you go into work and if there's only 3 clients booked in but they are spread across the day / you are at work 7 hrs but get paid 3 ???? Is that correct ... ??
If this is correct I'd speak to your employer about either being an employee or try to find another salon which will employ you correctly, is it just you or are there others 'self employed' who work there.
Some small business don't want to pay there accountants for doing their payroll as it increases their costs.

(If your unsure - speak to citizens advice, an accountant or even the tax office or look at the net for more info / this is just one site iv quickly found for you.


http://www.nidirect.gov.uk/sm/are-you-a-worker-employee-or-self-employed


Xxxx



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[squidgernetball]

There are a lot of small business accountants and book keepers who will look over your accounts for you and let you know if you're on the right track.
To begin with you are simply producing 2 figures - what's coming in and what's going out. This is what you need to give the HMRC. What you also need to do is to keep all the receipts/takings totals/mileage/expenditure etc to show how you arrived at those figures, if you ever get asked!

For peace of mind, ask around for an accountant or book keeper who will give you some advice.

Vicki x

 

[hazelb]

There is quite a bit of confusion but it is quite simple ( some of it )

Tell the tax office you are becoming self employed.

You don't need to set up as a company, register a trade name or anything like that.... just trade as a sole trader. Business manes are good for a high street salon type place.


pay the min NI ( national insurance ) by direct debit. ( I think it's about £10 a month )

keep records of your in goings and out goings and get on with your new work.

After the end of the tax year ( april 5th ) you will need to submit a tax return. On this you will state how much money you took over the year and what your business costs were. ( money in minus costs is your profit ) You will then be asked to pay tax on the amount of profit above your personal allowance. ( 9K?)

You don't need an accountant or a book keeper, you may be able to find a basic accounting course at your local FE college / business start up organisations etc.
If you are rubbish at that sort of thing it may be worth hiring a book keeper/ accountant. their costs are an allowable business cost.

 

[rippersroo]

What happens if like me you an "as and when" job?? I've got a part time job if you can call it that even, for example last week I done 21 hrs, this week 8, it varies! I'm still paying NI when I get my payslip.
I'm trying to start lashing for extra income but if I don't get loads of income then what? As I've paid out money (for supplies) it then looks like I've spent money I haven't got.
I know I have to register etc, but will I get into trouble for not working enough with my current employer? I don't want to look for something else I want to pursue the lashing, I also love my other job but the hours are a problem.
Thanks x