Totally confused - self employment

[Toria2012]

I have just went out as a self employed stylist from a salon and am now renting a chair in a local salon

I have obtained insurance and got myself a colour rep but am totally confused as to what to do with claiming back products tax etc. I have kept a book with earnings rent products etc but dont know what to do with it

Anyone offer advise to a newly self employed hair geek would be amazing!!!
xxx

 

[Alex-Lydia]

First thing to do is get a good accountant, and work out if it is better for you to do your own books, or if you are busy pay someone else. Ask friends and family, or Geeks who live near to you to recommend someone, its really important to get a good one and recommendation is best.

Good luck and have fun being self employed x.

 

[Pinkprincess73]

Hi I agree, I've done my husbands accounts for years, our accountant showed me how to do simple spreadsheets & they work out all of the deductions, although you pay your accountant they will save you far more than they cost to process your return x

 

[Toria2012]

Thanks so much ladies its all so exciting xxx

 

[Lauraaaah]

Also just make sure you keep your reciepts for EVERYTHING you buy inc work uniform !x

 

[scottydolly]

jus keep all your records, incomings outgoings, reciepts for everything. . do your books once a month, figuring out ur profit after u have both your totals etc and record them. Your products ae an expense so are tax refundable, so as long as you have reciepts for them you wont have to pay tax for them at the end of the year, if it is VAT you want to claim back, you have to be earning a certain amount before you have to be VAT registered, but if that happens you have to pay VAT bills through out the year and then claim back VAT on all your purchases at the end of the year, I THINK. . . i dont pay or claim back VAT. . . so im jus going by what i have picked up. I do my own books because i only rent part time so it a very small task

 

[Tinkes1980]

Hi I'm a newbie, just getting back in to the trade after a very long time out of it, anyway, VAT can be claimed/paid quarterly, I have a book keeping background too!! But there is an earnings threshold to pass before you can claim it back, and you will also have to incorporate the 20% in to your prices! Hth

 

[excelsiorhairde]

It might be worth your while going on a few HMRC newly self employed courses, they are free and show you what can be claimed for because you unfortunatley cant claim for everything you probably think you can. Also make sure you have a contract in place with your salon that states your rules and regulations this is very important. And good luck x