Part time self employed ?? where do i start

[TheCheekyMonkey]

OK well long story short am sick of working for others and would like to test me toes on going part time self employed with a look to going full time etc .

but i havent a clue where to start.

I basically do computer repairs upgrades networking etc etc and have done for the last 18 years. worked for others but i do enough in my spare time to get by going at least part time self employed. But i have absolutley no clue where to start and what steps i need to take, so thought some of you people might do the same and could help me out.


cheers

 

[turner brown]

i would stay employed for a bit but also open a buisness account, put all money made from your part time stuff in there and then pay your self a wage from that
minimum wage to start off. also this helps keep records for accounting and so on ,once you feel your ready then just hand in your notice.

 

[TheCheekyMonkey]

heh heh, not emplyed anymore. Im not willing to work for anyone else and i dont think theyd have me lol.

just need some directions to go in.

cheers

 

[Him Her]

Register with HMRC as a Sole Trader. You'll need to do an annual return but Sole Traders can do this on paper or on-line without any special software.

Consider Public Liability insurance - in case you fall over the cat and break that Ming Dynasty vase on the hall table

You can claim expenses for items you use such as part of your house or mileage (if you claim mileage you'll have to keep records of the trips).

Keep the paperwork for income and expenditure.

Look for an accountant and get costs - HMRC usually just accept returns from accountants.

VAT registration is voluntary until you hit £77k so you're probably best avoiding this for now as returns are a pain in the ass!

You can keep track of the cash using spreadsheets - I uploaded an example, I'll hunt it out...

http://www.digitalworldz.co.uk/downloads.php?do=file&title=payments-sales&cid=11&ctitle=misc-downloads&id=168

 

[TheCheekyMonkey]

what about income tax if im only part time?

cheers for the pointers will be lookig into this over this week.

 

[zad]

what about income tax if im only part time?

cheers for the pointers will be lookig into this over this week.

Doesn't matter how many hours you work mate you will be self employed, tax is paid on money earned..

As already said open a separate account, make sure you save at least 20% to cover any tax bills then when you do your accounts you will have a final amount you owe etc, get a good accountant if you start earning good money and he will advise what you can claim back regarding heating etc etc..

Main thing is make sure you have traceability of all money in and out of you work..

 

[Him Her]

Your PAYE tax code still applies - as it does to ALL income. Just add a zero on the end of your tax code and that's the amount you can earn tax-free.

Be careful with NI though as there are different schemes. HMRC will probably want you to pay a fixed amount per week/month but an accountant should be able to advise on the best option for you.

 

[TheCheekyMonkey]

ok thanks, well i think best bet is a trip to see an accountant first off, my mate runs his own business and recommends his so i will try and get a coffe with him and pick his brains.....

cheers all for the advice, it is very much appreciated.....

 

[chopps]

Don't forget to get and keep receipts for absolutely everything you buy or pay for that is even remotely connected to your business, and record every journey you make. Every mile you drive is money in your pocket. I'm PAYE again now, but when I was self employed every pay and display ticket, magazine, train fare, computer, phone, van hire, skip hire, broadband subscription, work clothes that I bought was offset against my tax for the year. Like several people have said, a good accountant or even a half decent book keeper will show you the way through.

 

[Diddy]

Also don't forget to erase all traces of cash jobs lol. My extremely dozy cousin got picked this year for a random indepth look into his tax returns (It does happen to self employed). Anyway the idiot had done a 2 grand cash job off the books and then paid the cash into his bank account ffs. He has been cleared after some creative explaining ect but it was a close shave to be fair.

 

[TheCheekyMonkey]

cheers again for the superb info.

many thanks