General Chat Thread, Selling a Website Design in General; well, after speaking to the nice lady at the tax office, it appears, yes, registering as self employed is a ...
26th May 2010, 08:42 AM #31
well, after speaking to the nice lady at the tax office, it appears, yes, registering as self employed is a good idea, but not one i am going to do just yet, for now, she said i could, should i want to, phone the tax office, every-time i have been paid for a site, and then get them to add the amount to my tax code. which means i pay it off monthly, which seems very good, but i am a little concerned that at the end of the year, they will assume i am going to earn the same next year, and perhaps this is something i need to look into, is how easily can my tax code be "reset"
This sound like something i should consider? or should i just grab my man parts and jump in as a sole trader
26th May 2010, 08:47 AM #32
Is one really needed? Her Majesty's Revenue and Customs is responsible for collecting tax, on whatever scale. There is even a dedicated web site and helpline to report tax evasion... HM Revenue & Customs: Reporting Tax Evasion
Originally Posted by RingOfFlame
Added to that, this article BBC NEWS | Business | The fight against tax evasion details how HMRC increased tax revenues in recent years. The article is a couple of years old admittedly, but I doubt policy has changed much in that time. Indeed, with the current focus on the economy being what it is, I would suggest HMRC will be looking to increase tax revenue in the coming years.
26th May 2010, 09:11 AM #33
Your tax affairs will be no more complicated as a Sole Trader than they are as PAYE. If anything, as a Sole Trader, you can make life very easy by keeping everything nice and separate, submitting a tax return with all sorts of claimable expenses on it, and, with a clever accountant, actually end up paying LESS tax!
Originally Posted by Ben-BSH
Having said that, if you want to make sure you only pay tax on income, get an accountant involved. If you are happy to charge £100 knowing you actually spent £5 on the telephone calls, £10 on the electricity used whilst designing the site on your computer and another £10 heating the room you use, then simply submit a basic tax return and absorb the expenses in your fee.
Thanks to theeldergeek from:
26th May 2010, 09:12 AM #34
Awesome! then that is what i shall do.
Thanks all, you have all helped so much!
26th May 2010, 10:18 AM #35
What he said, but you won't have to pay tax as long as you buy stuff for the business. Hence why I have 2 x 24inch monitors, a new pc, lots of camera equipment ect ect ect. Keep receipts, keep paperwork, buy stuff with your allowances. There are a load of deductions you can make, inc maintaining an office at home.
26th May 2010, 11:25 AM #36
Buying "stuff" for the business doesn't automatically equal paying no tax. What it does mean, is you can offset any business expenses against tax that you do owe. Things like heating, lighting, electricity and phone are all tax deductible, as are any assets you buy for the business (computers, FAX machine etc). Using your home as an office also brings allowances, but you need to be very careful about this because you can then sometimes be had for business rates, so only ever declare one room as your office (an accountant would be better placed to advise you on this though).
Originally Posted by ICT_GUY
Like I said before, you can keep it simple and just pay tax on what you earn, absorbing any business costs in your earnings, or you can claim for a myriad of allowances and tax deductibles.
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