Shellac-working from home, advice please!

[kitkat84]

Ok so I have been doing nails from home for a few months now and wanted to make sure it would go well before I got in touch with tax office etc.

So I am going to see my dads accountant this week for more advice.

Was hoping some lovely ladies on here could also help.

What else can I ask the accountant?? This is what I have so far:
How much tax will I pay?
Will a tax man come visit me to see how I am working from home?
Will I have to pay anything else other than tax? Fees etc

At the moment I don't have insurance as I am only doing Shellac & Rockstar, do I really need it as i will never be providing acrylics etc?

Thank you.

 

[beautychic]

Hi sorry didnt want to read and run.

Off the top of my head the only thing I can think of to ask is what you can claim for with regards to allowance towards electric, washing etc. If I think of anything else I'll have to come back lol.

However, you should have informed the taxman the minute you started charging for services - you will have to discuss with the accountant how to take this forward.

Also you have to have insurance - you are using chemicals on people. If a client was to have a severe reaction to somthing you had used during a treatment they would be suing you personally and this is what your insurance is for.

Hope this helps xx

 

[kitkat84]

Hi sorry didnt want to read and run.

Off the top of my head the only thing I can think of to ask is what you can claim for with regards to allowance towards electric, washing etc. If I think of anything else I'll have to come back lol.

However, you should have informed the taxman the minute you started charging for services - you will have to discuss with the accountant how to take this forward.

Also you have to have insurance - you are using chemicals on people. If a client was to have a severe reaction to somthing you had used during a treatment they would be suing you personally and this is what your insurance is for.

Hope this helps xx

Ok thank you for your help. The only reason I didn't is because I wanted to make sure it would all go ok an not b a waste of time. Now I know that.

 

[mrsfrancis]

Hello and Congratulations.

First have you registered self employed? Your accountant will show you how.

You will also have to pay your own National Insurance contributions. This can be set up through HM Revenue and Customs and can be taken reach month via direct debit.

There is no way to tell how much tax you will pay per year to be honest, however when I first started Self Employed I put a tenner aside per week and at the end of my first year I didn't even earn enough to pay tax. So that was nice

As said above you do NEED public liability insurance this is not only for your client but to protect you too and it isn't that expensive if you are just doing Natural nails anyway. Look at the City and Guilds insurance they are really good.

Hope this helps

 

[GorgeousAli]

Hi kitkat84,

Insurance is a must! As mentioned above, its always just in case something goes terribly wrong! (Fingers crossed it never will!) It will also include damage to property ie spillages on carpets and tables etc!

Business wise, here are some fabulous websites, please take your time to look through them. They have been invaluable to me, the links are bellow:

Starting up | Business Link

Hairdresser / Beauty technician Non-VAT/GST Bookkeeping Spreadsheet - Easy Bookkeeping Spreadsheets

I hope this helps!

Good luck

 

[blossom]

Ok so I have been doing nails from home for a few months now and wanted to make sure it would go well before I got in touch with tax office etc.

So I am going to see my dads accountant this week for more advice.

Was hoping some lovely ladies on here could also help.

What else can I ask the accountant?? This is what I have so far:
How much tax will I pay?
Will a tax man come visit me to see how I am working from home?
Will I have to pay anything else other than tax? Fees etc

At the moment I don't have insurance as I am only doing Shellac & Rockstar, do I really need it as i will never be providing acrylics etc?

Thank you.

Hiring an accountant will swallow up what you have made from many many many Shellac applications!

I've been self employed for 9 years and always do my own tax returns, there's a simpler form of tax return for smaller businesses which is only one folded sheet, it's not difficult and I hate maths but it's really only a case of keeping a tally on what's coming in, going out (in date order and keeping receipts for anything you buy - anything, even an orange stick lol) and subtracting one from the other to find your profit.

I tot up once a week/fortnight as if I don't keep on top of it it's such a pain.

You are allowed to earn a certain amount before you have to pay tax, this is your "Taxable Allowance" and I think is around £5-6k, you can check what yours is

If you are employing anyone it might be more complicated. If you claim for a car if you're mobile there are other considerations. Don't forget to claim for a proportion of the phone, electricity etc

Sorry if you know all this already and I'm just waffling lol

Edit to add: Never had the tax man round. Think there are bigger fish to fry lol

 

[kitkat84]

Hiring an accountant will swallow up what you have made from many many many Shellac applications!

I've been self employed for 9 years and always do my own tax returns, there's a simpler form of tax return for smaller businesses which is only one folded sheet, it's not difficult and I hate maths but it's really only a case of keeping a tally on what's coming in, going out (in date order and keeping receipts for anything you buy - anything, even an orange stick lol) and subtracting one from the other to find your profit.

I tot up once a week/fortnight as if I don't keep on top of it it's such a pain.

You are allowed to earn a certain amount before you have to pay tax, this is your "Taxable Allowance" and I think is around £5-6k, you can check what yours is

If you are employing anyone it might be more complicated. If you claim for a car if you're mobile there are other considerations. Don't forget to claim for a proportion of the phone, electricity etc

Sorry if you know all this already and I'm just waffling lol

Edit to add: Never had the tax man round. Think there are bigger fish to fry lol

That's really great thank you. So I'm better doing it myself. how do I do this? Without the accountant then??

 

[Lynne Baker]

I've created a spreadsheet where you can keep a tally of all your takings. If you would like a copy drop me a pm with your email address and I will add you to the dropbox folder where it is stored online.

 

[bridget1802]

I just use a spreadsheet too, I just keep a record of everything I pay out and what I earn and its really easy to complete the tax return, and if you are struggling just give the tax return a call and they will talk you through it, I also keep a folder with all my receipts should the tax man ever want to see them

Vicky x

 

[LEF]

If things go really well it may be worth setting up a ltd company. There are a few advantages to this if you make quite a bit you can use for tax planning (to minimise your tax) also if you were ever sued they would only have acces to the companies assets and couldn't take yours - i.e. your car or house! You must have the insurance though! Company accounts and tax returns are quite easy too. A good idea is to get an accountant to do them the 1st time then copy them the next time & do them yourself from ten on. Good luck!

 

[Lynne Baker]

When you take out insurance do make sure that it covers contractual disputes. Lots of the policies make a mention of "legal cover" but when you investigate what that means it invariably means that it doesn't cover it.

 

[kays_acrylicsox]

When you take out insurance do make sure that it covers contractual disputes. Lots of the policies make a mention of "legal cover" but when you investigate what that means it invariably means that it doesn't cover it.

Hello Lynne sorry to jump on this lady's thread please may I ask who do you use for insurance that has this contract part? As just found out mine doesn't that you ever so much x

 

[Lynne Baker]

Ah, yes. At the moment my lovely mum in law who is an insurance broker is searching one out for me.
There are many things to consider. For instance, does your insurance cover your stock. When I looked carefully at my working from home policy I discover that it will cover only £500 of stock. At my last stock check I had about 15k's worth. If my house went up in flames I would lose all that...

A couple of people have said to me well why do you need contractual dispute cover?
Imagine the following scenario.
You buy a whole load of stock, say a skincare range, and you pay the invoices in good faith.
Lots of small brands have either gone under or have pulled out of the uk, and that distributor disappears into the sunset. The brand is taken over, or administrators are called in and they start harassing you for money. Money you've already paid, but the previous owner has squirrelled it away somewhere, so that to an outsider it looks as if you haven't paid. Now, you can prove that you have paid, so all is well, isn't it?
Er, no. Did you know that in the uk if you are slapped with a lawsuit you have no option but to defend it otherwise you will be found guilty automatically. Well, that's ok, because I can claim for costs, can't I? And here's the kicker...
If the company suing you has no money, and we've already established that they're about to go under, there will be no way of recovering your costs, and you will end up with a big legal bill.

CHECK YOUR COVER!

 

[kezza*]

Having an accountant it not as expensive as u think, and it's comes off your tax bill as an expense. U have three months from the day you start charging to tell the taxman. I'm a home salon and I made my money back from shellac within a month.

 

[souz]

when you are working on anyone and providing a service that they are paying for you need INSURANCE...really important, if some one has an allergic reaction and wants to sue you you need insurance!

once you are receiving money for services you have to tell HMRC, you can earn just over a hundred pound week before yo will pay tax but you will need to start paying NI straight away. obviously you will take off what you have bought so you have to keep records of everything paid in and out. Go to business link and do a free one day course, you will come away with all info you need, if you are still unsure you can pay for extra courses to go in detail of book keeping etc,

dont be daunted by all this though, and dont over complicate things, simple book keeping is all that is neccessary if you are on your own as self employed.

good luck