Starting up! Any help would be appreciated

[Staceyxlouisex]

Hello

Thankyou to anyone who is taking time to read this post! I'm really trying my best with this but finding it very difficult.

I'm currently working full time (not in the beauty /hair sector) and now looking to get into beauty currently doing courses (eyelash extensions, makeup, facials) I'm already a qualified hair dresser but not done it professionally!

I'm planning on being mobile - also including weddings.

The practical side I'm finding easy but the business side I'm struggling!

Any advice on how to set up would be great!

So I understand I need to set up with HMRC.

But how would I do my finances? Does anyone have any examples on spreadsheets ? How do I figure out what taxes to pay and NI?

Once again I really appreciate your help.

Xx

 

[Preenie01]

I've recently opened a salon and it's been a bit of a headache. I have set up as a limited company so I am unsure exactly what you need to do, my partner however is a sole trader and at the end of the year he just does his tax return (keeps receipts, claims back for business expenses etc) Are you going to be continuing to work alongside doing your mobile work? X x

 

[DebzBeauty]

I've run my own mobile business for 10 years. I keep all my receipts (for literally everything!) & note it all down in my accounts book - income & outgoings, then I give it all to my accountant to work out & he fills the form in! Daren't do it myself incase I do it wrong! Any questions, feel free to pm me x

 

[squidgernetball]

It's pretty straightforward if it's just you and you're a sole trader. It only worth going Ltd if you're paying a lot of tax or if you want to limit your losses so you would be a sole trader.

It's dead simple. I would write down daily my takings in cards and cash then my outgoings, so a trip to the wholesalers would get written down, the amount and the mileage. Last time I looked you were allowed 45p a mile.
You make a note of your costs like insurance, washing, drying and so on. Everything that's related to your business.
At the end of the tax year - so probably April 2016 - you tally incomings and outgoings and what's left (or not) is what you pay tax on by the end of Jan 2017.

You can pay an accountant if you want to but online tax returns for sole trader is really straightforward but when I asked an accountant to look over my accounts, as it was all done, she charged me £100 but saved me about £200 with bits I could claim for etc.

Vic x

 

[Staceyxlouisex]

Wow thanks guys!
Yes I would be a sole trader- I've really tried my best to research as much as possible but I just want to be certain that I'm doing it all correct!

The plan is to keep my full time job (I'm a dental nurse working mon - fri) then working doing beauty evenings and weekends! The plan is to as i build up my client base to then slowly cut down my hours at my current work place and then hopefully be able to do this full time! I don't Expect it to happen over night and in willing to put the work in! I've already got a lot of friends and family interested (not to blow my own trumpet but I've always been good at makeup and hair and girly things and it's the encouragement of those around me that's got me this far!)

So initially it will me be doing maybe a couple of sets of lashes here and there and maybe an odd wedding /prom!

So I now understand a bit clearer I would write down all of my income - then write down all of my outgoings/expenses and what's left I pay tax on? Im guessing I would be at a loss for the first year as courses would be a classes as an expense? Do you submit this all online ?

And now about NI ?

Thank you guys so much for this! Everyone else seems to explain in the most complicated way!
Xxx

 

[LittleL80]

You need to register with HMRC as self employed which you can do online. You'll then get letters about when everything is due to be submitted. I also get bills from them for my NI. You used to be able to set up a direct debit for NI contributions but they seem to have stopped that now.

Good luck!