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Are you self-employed or "limited company"?


Vito

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The only thing I would add to the excellent advice from Piddlypants and Waterboy (bit like Japan in this thread) is something that Vito may not experience at all, but others in a similar situation may encounter.

 

We're about to start renting a new flat and we were told by our new estate agent that we had to have an accountant as we are both self employed to prove our earnings. I'm sure this is not the case with all estate agents, but make sure you have a guarantor who covers the yearly earnings that they require if you are in a similar situation to what we were if they are like ours. Absolutely do not bother with an accountant though, they cost a packet and then some.

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Can I be a bastard and ask for a retard-proof step-by-step guide of how to set this thing up and what I need to do on a month by month basis, what kind of things I need to log and what to do with it and when? Don't go into ludicrous detail, just summarise it.

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If you discipline yourself to put a certain amount away per month then you will be okay to pay it all off in one chunk.

 

Waterboy knows best.

 

I'd keep aside 25% of whatever net profit (Income minus expenses) you make on a monthly basis.

 

Assuming you make less than

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^ That's what I did, stuck 25% per month away plus an extra few quid here and there, to be safe.

 

Can I be a bastard and ask for a retard-proof step-by-step guide of how to set this thing up and what I need to do on a month by month basis, what kind of things I need to log and what to do with it and when? Don't go into ludicrous detail, just summarise it.

I'll send you the log I used, which pretty much does everything you need it to do.

 

It's got a tab for you to enter all of your income, which dates you were paid and for which periods they relate (you really only need the total, but I'm a bit of a stickler for detail). There's then another tab for you to enter any outgoings which logs what the expense was, when it was bought and the value. I also used OneNote to consolidate all copies of my receipts. You don't need to submit the receipts with your return, it's just in case they're needed if you get audited.

 

The two tabs spit through to a total page which simply shows you the balance of both tabs, which are what you need to fill in your tax return.

 

It's saved to my work laptop so I'd have to send it in the morning, but once you see it you'll see how easy it is to keep track (providing you update it, that is!).

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Can I be a bastard and ask for a retard-proof step-by-step guide of how to set this thing up and what I need to do on a month by month basis, what kind of things I need to log and what to do with it and when? Don't go into ludicrous detail, just summarise it.

 

Ring 0845 915 4515 to register as self employed. (Do this after 6th April) You will be sent a UTR. Keep it safe. You will also be setup for Class 2 Nat. Insurance, pay via DD (

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The only thing I would add to the excellent advice from Piddlypants and Waterboy (bit like Japan in this thread) is something that Vito may not experience at all, but others in a similar situation may encounter.

 

We're about to start renting a new flat and we were told by our new estate agent that we had to have an accountant as we are both self employed to prove our earnings.

 

If you need to prove your earnings, ring HMRC and get your last 3 years worth of SA 302's sent to you (A tax calculation showing total income and tax paid for the year). Thats a credible enough piece of evidence without needing to pay for an accountant.

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If I may threadjack please :)

 

I'm employed, but recently I've started doing a bit of work for friends. I want to be legit & pay tax, but not sure how to go about it. Is it the same as just if I'm going self employed? What about the tax/NI I pay automatically through work?

 

Also what's the benefits of going into a Limited Company?

 

Know it's probably the wrong place to ask, and know that nothing is classed as financial advice, just curious :)

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