Starting a self employed business

[marielouise]

Hi everyone. I’m new here.
I’ve booked myself on to some nail courses with the hopes of starting a small mobile business.

I just have a few questions if any can help?.....

1) when I register as self employed, is that from the date of my first paying customer or should I register now as I heard training courses can be put through as expenses?

2) can I put training courses through as expenses

3) expenses?? I know I can put things like equipment, gel etc through but how exactly does it work?
Am I right in this example....

I earn £1000
I spend £100 on essentials for my business
My taxable income is now £900

Sorry, totally new and anxious not to get any tax stuff wrong xx

 

[Trinity]

Go on the HMRC website, they have lots of resources and advice about setting up a new business. They'll explain what you can ans can't claim for, etc.

 

[BobSweden]

The problem is that you can't know what questions to ask until you know what questions to ask . In addition to Trinity's suggestion, there are tons of easy guide books for starting and planning a business, easy marketing explained etc. You should also talk with an accountant or bookkeeper so that you can create a system to manage the paperwork - this will save you money on their fees in the long run.

 

[LeeGraham77]

Hi everyone. I’m new here.
I’ve booked myself on to some nail courses with the hopes of starting a small mobile business.

I just have a few questions if any can help?.....

1) when I register as self employed, is that from the date of my first paying customer or should I register now as I heard training courses can be put through as expenses?

2) can I put training courses through as expenses

3) expenses?? I know I can put things like equipment, gel etc through but how exactly does it work?
Am I right in this example....

I earn £1000
I spend £100 on essentials for my business
My taxable income is now £900

Sorry, totally new and anxious not to get any tax stuff wrong xx

In response to your questions;
1.The date your self employment starts is the date you start trading, so yes, your first paying customer. It's usually best to register as soon as possible but technically you have until the 5th October in the businesses second tax year to register.

2.Where a training course is to provide a new business service(s), this is not an allowable expense for tax. However, say you took a refresher course at a later date, this would be allowable.

3.The main question to ask yourself when evaluating your expenses is, is it deemed wholly, exclusively and necessary for the purpose of your business? If the answer is yes then it is likley to be allowable, however, this can be subject ot interpretation so it is always best to check on the HMRC website https://www.gov.uk/expenses-if-youre-self-employed
It will also depend on how you are keeping your records eg. cash basis vs accrual basis as there are different methods for reporting your expenses.

If you are unsure or do not have much experience in bookkeeping/accountancy, I would recommend finding an accountant, it is a bit of a mine field and often what an accountant can save you in tax outweighs their fees.

Hope this helps!