Tax and National Insurance

[BeautyByJadeox]

Hi Guys

Just wondering if anybody had any help or advice
I have just started my own beauty business, I am renting my own salon room!(Loving it) I have done my own insurance but I am struggling to get my head around tax and national insurance. If anyone can help thank you xx

 

[squidgernetball]

It’s pretty straightforward if you’re a sole trader. You log what’s coming in and log what’s going out. What’s left is what you pay tax on (assuming it’s over around £11,500). You can get advice on what’s allowable for expenses etc from an accountant or from HMRC.

Obviously that’s simplifying it, but that’s the general gist. And you need to register with HMRC when you start working.

I found it easiest to do my accounting from April to March the following year and those accounts need to be with HMRC the January of the year after (so if you were doing your books from April 2016 to March 2017 you would need these with HMRC by January 2018 at the latest) but you can do them a lot earlier.

Hope that makes sense

Vic x