TAX

[Aphrodite]

I work full time during the day and "do nails" in the evenings and weekends, however i will be giving up my day job soon to do nails full time. I just wondered if anyone knew what the situation on tax and VAT is when you're:

a. Working full time and doing nails part time
b. Doing nails full time

Would appreciate all your advice and knowledge on this as i'm CLUELESS when it comes to things like this :?

 

[geeg]

Well you are really best speaking to an expert on this one.

Do you have an accountant to advise you. If not, I suggest you get one and discuss the implications of being self employed vs. an employee, there are advantages and disadvantages. And to make sure you get it right, it is always best to seek advise from those whose job it is to know.

 

[Aphrodite]

Thanks Geeg - you're right, best to speak to the experts on this one!

 

[SUNsation'NAILS]

hi ya, the business link website is full of info on tax and vat...vicky

 

[naturalnails]

Hi Claire,

as the daughter of a retired tax inspector (OMG that's twice on here I have admitted that LOL) I have always kept really good records of everything in and out.

While you are still employed you must inform the inland revenue of all extra income as this will affect your tax.

You do not need to register for VAT until your turnover is about £52k - whilst it seems a good idea to voluntarily register initially to claim back VAt on everything you buy - in the long term unless you sell lots of things, it doesnt seem to have any advantages and it gets complicated if the business ends.

For the first couple of years I did all my own accounts but as I now make enough to be in the tax bracket, I have an accountant to make sure I only pay the tax I need to LOL.

Find an accountant - I got mine through the ACCA website and put in my locality and it gives you names of members in your area. My lady works from home, has several mobile hairdressers etc as clients and charges me far less than she saves me LOL

Good luck.

 

[beautiful_nails]

Hi Claire,

I just had this info laying round on my desk so here you go....

You are allowed to earn £4615 before you pay tax on your money, after that it is 10% up to £1920, then 20% on £1921-£29'900 and anything over that is 40%.

If you pay Class2 Contributions on NI it's £2 per week if you earn over £4025. Class 4 Contributions are 7% of your profits over £4615.

Keep receipts for EVERYTHING as anything that is bought for your business can be taken away from your income making you pay less tax.

Get yourself a good accountant and you'll save more than you pay for him/her...

Jules

 

[*Glynis*]

Numbers are really not my strong point. I have employed a free-lance accountant. She charges £10 per hour and its worth every penny. I don't know what I'd do without her! At the end of every month I just hand her all the receipts/invoices and income information, she does the rest.

 

[Aphrodite]

WOW!! :shock:

Thanks so much everyone, am off to find a good accountant from the ACCA website who will hopefully "cost far less than what they save me" lol :eyesore:

How fab is this website?!! :goal:

xxxxxxxxxxx

 

[feebeast]

I am employed and self employed too - and as my emp'd job is with the government I could lose it if I didn't keep on top of things :shock:

Basically I got in touch with the Inland Revenue, who sent me out a S/Emp starter pack.

You will be liable to pay tax on your s/e earnings if you pay tax in your emp'd job, coz your £4615 allowance will be taken up in this, as will the 10% section if your gross is >£6535p/a.

All your s/e earnings will be subject to the 20% up til your total earnings (emp'd & s/e) total over £29'901 then anything over & above that is taxed at 40%.

Hope this all makes sense!

 

[Nails At The Hat Hire Company]

..importantly as i have just found out you need to register self employment within 3 monhs REGARDLESS of the income otherwise they fine you £100.00!!!! registering is painless and you can download the forms from online which i did... you can opt out of nat insurance subs if you dont earn enough under a certain amount but you still have to register in the three months or get a fine!!! just a tip..... good luck