Self Employment start up checklist?

[slick132]

Hi Bitemarx,

 

Things are so different now compared to 10 or 20 years back. You can file your own accounts and tax return easily if you are competant and knowledgeable. Registering with HMRC is fine just now but not essential.

 

To enable us to give best advice, can you tell us :-

 

1. The type of business you are in.

 

2. The turnover you think you may achieve in the next 3 months and the next 12 months. 

 

3. Did your tax accountant suggest the date you should make your first accounts up to.

 

In the meantime, just ensure you keep records of all income and expenditure. Keep all receipts that you get too.

 

I use a simple spreadsheet to record all income and expenses, using a different "code" for each type of "revenue" expense such as advertising, motoring, materials, bank charges, insurances, etc. Dealing with values of "capital" expenditure is sightly more complicated - instead of claiming the full cost or value of a vehicle or machinery, you claim Capital Allowances for their depriciation.

 

More important, perhaps, is whether you are likely to be earning enough to be involved with VAT. The present threshold is £85K pa as a guide but the quartely totals are relevant too.

 

Come back with answers and we can say if you would be ok handling things yourself, or if you'll benefit from an accountant/tax advisor.

[slick132]

Hi BM,

 

From your replies, I think you should get an accountant or tax advisor but NOT the one you have seen already. They really didn't seem interested enough.

 

Speak to family, friends or work colleagues to see if someone can recommend an accountant/ tax advisor they're happy with. You should get a free initial meeting when you can ask a few Q's and see who impresses you most.

 

They should also be able to give you an estimate to compile business accounts and/or file your tax return.

 

Although there are many Apps that can help you with book-keeping, I think you will benefit from advice about how to keep records of income and expenditure, picking an annual accounting date and then having the data processed to make your annual tax returns.

[slick132]

That's why I said to ask around, particularly work colleagues, to see who they are happy to recomend.

 

Doesn't matter if they're a small local tax adviser, accountant, medium sized practice, whatever - personal recommendation is a good way to start.

 

Once you know how to record items properly, with a spreadsheet or an App, you may be able to complete your own tax return or at least save money by doing as much work as you can before passing it on to the advisor/accountant.

[slick132]

Just to add some balance to the picture, as Taxhelper says, HMRC has focused on various sectors over many years, with a view to getting workers onto PAYE if they really are employees.

 

However, you're unlikely to be in any trouble when you are doing what thousands of other dentists do. HMRC are likely to change things by giving new orders to the companies that "employ" you.

 

Keep good records of all that you receive and spend and find a recommended advisor to help you with recors/accounts and tax return.