Biting the bullet

[Paddy Galore!]

you can claim for all the gear you buy for work even if you're paye, tools, ppe, fuel etc, how about you just mention to your boss that you want to work for him as self employed? won't be such a mess then.

 

I think you can claim back up to six years worth of expenses, get looking for those receipts!

Edited February 3, 2017 by Paddy Galore!

[KFC]

You can be self-employed and PAYE at the same time, I was for several years.

[winnie&bezza]

if you have your nvq you just need to apply for your card, it shouldn't cost much more than £50, then renewal every 5 yrs, there's no minimum limit on earnings to be a ltd company, pay yourself a wage from the company and buy everything else you need like tools, van, motoring costs, training costs, insurance, ppe etc through the company, the sparky I know earns around 40k a year, his accountant costs him something in the region of £500 a year which is also tax deductible, he paid less tax and ni than I did over the last year and I earned about 8k less than him.

Oh right, so what's the catch with going ltd? Surely more people would do it?

[winnie&bezza]

you can claim for all the gear you buy for work even if you're paye, tools, ppe, fuel etc, how about you just mention to your boss that you want to work for him as self employed? won't be such a mess then.

 

I think you can claim back up to six years worth of expenses, get looking for those receipts!

What!!!! I could of claimed for tools etc even though Ive been paye for 13 years?

Haha I very much doubt he would go for that. He's a stubborn control freak and probably would rather use someone else than use me as he will most likely think im not being loyal. He would be cutting his nose off to spite his face mind you as he won't find someone that can do what I can do easily and someone he can trust. That's his problem though.

 

I've bought quite a few expensive power tools in the last 3 years and hopefully have the receipts on the my account section in the shop website. So could I claim for them still if I print them off?

You can be self-employed and PAYE at the same time, I was for several years.

Now I know, cheers for that.

[vampire]

Welldone,i knew you would end up branching out on your own,best of luck.

 

Always get it in writing,you send them quote and want written instruction.

I always go through a job item by item,listing materials then labour with a margin % on each item then add up each page to form quote and its how long it takes NOT how quick.if client wants to alter the quote then its easier to go back.

On a day work contract as you will be with this new client,always keep a time sheet fully filled out,if you need to go back to it in dispute it will save loads and be an accurate record of hours.

Open trade accounts and get terms set up or you end up getting a price plucked from the air by who ever served you,haggle ask for discount and keep all of it.

Make sure everyone knows everything that you are able to do 'did't know you did painting' and you lost a job and let someone else in,list it all on the van.

Get a van,fit dead locks on all doors and alarms,fit a driveway alert and flood light,now you know the scum are on your drive and at leats they can only break your locks,and you will be burgled more than once.

Get public liability insurance and tools.

When you go to do the survey,remember that visit is as important as the the quotation price,they are judging you first and if they want you in their home.

Take a deposit,interim invoice at stages on larger jobs.

Save your tax money and a bit more incase,better than scrabbing to find it.

Don't sacrifce yourself to one client and lose others.

Small jobs can lead to a bigger one later or a referal.

Get company shirts with logo.

Website.

You don't need every customer,be aware.

Advertise,advertise,advertise these are the 3 rules you need to remember to stay in business.

Don't ever neglet the wife.

 

25 years self employed and last 17 years as sole trader.

Edited February 3, 2017 by vampire

[AVB]

What!!!! I could of claimed for tools etc even though Ive been paye for 13 years?

Haha I very much doubt he would go for that. He's a stubborn control freak and probably would rather use someone else than use me as he will most likely think im not being loyal. He would be cutting his nose off to spite his face mind you as he won't find someone that can do what I can do easily and someone he can trust. That's his problem though.

 

I've bought quite a few expensive power tools in the last 3 years and hopefully have the receipts on the my account section in the shop website. So could I claim for them still if I print them off?

 

Now I know, cheers for that.

I know little about this but even as PAYE I would have thought that you could claim tax relief on the tools required to do your job.

 

I would have thought there is somebody on here who could advise. The only thing I could claim for would be the odd pen!

[winnie&bezza]

Welldone,i knew you would end up branching out on your own,best of luck.

 

Always get it in writing,you send them quote and want written instruction.

I always go through a job item by item,listing materials then labour with a margin % on each item then add up each page to form quote and its how long it takes NOT how quick.if client wants to alter the quote then its easier to go back.

On a day work contract as you will be with this new client,always keep a time sheet fully filled out,if you need to go back to it in dispute it will save loads and be an accurate record of hours.

Open trade accounts and get terms set up or you end up getting a price plucked from the air by who ever served you,haggle ask for discount and keep all of it.

Make sure everyone knows everything that you are able to do 'did't know you did painting' and you lost a job and let someone else in,list it all on the van.

Get a van,fit dead locks on all doors and alarms,fit a driveway alert and flood light,now you know the scum are on your drive and at leats they can only break your locks,and you will be burgled more than once.

Get public liability insurance and tools.

When you go to do the survey,remember that visit is as important as the the quotation price,they are judging you first and if they want you in their home.

Take a deposit,interim invoice at stages on larger jobs.

Save your tax money and a bit more incase,better than scrabbing to find it.

Don't sacrifce yourself to one client and lose others.

Small jobs can lead to a bigger one later or a referal.

Get company shirts with logo.

Website.

You don't need every customer,be aware.

Advertise,advertise,advertise these are the 3 rules you need to remember to stay in business.

Don't ever neglet the wife.

 

25 years self employed and last 17 years as sole trader.

Much appreciated advice and very good at that.

Very helpful I must say!

What is the difference between self employed and sole trader?

 

Many thanks.

Edited February 3, 2017 by winnie&bezza

[Vince Green]

Worst advice at the minute sorry.

We've had 1 van sign written and it was emptied 3 times.

Sign writing it the worst thing you can do.

On Facebook their is several trader sites and at least 15 vans a week are emptied. We have 25 over Xmas within a 10 mile radius done over on our local spotted Tamworth . This is only the ones I've heard of.

It's a shame as its a great advertising tool but you can't work without kit .

I never lock our vans, just leave them empty and open.

Edited February 4, 2017 by Vince Green

[team tractor]

I never lock our vans, just leave them empty and open.

But where do you put your tools? It's not possible to keep emptying the van every night?

I take any expensive bits off but glues, silicon , screw boxes, levels etc stay on . If you put stuff in a garage or workshop it's just as easy to steal the stuff. We've had our units emptied at least 10 times.

I guess to me sign writings like putting a basc sticker on your car. It tells everyone what you have

[old'un]

Oh right, so what's the catch with going ltd? Surely more people would do it?

http://www.rossmartin.co.uk/starting-in-business-77750/140-sole-trader-v-limited-company-key-tax-a-legal-differences

 

Back room stuff

 

Unless you or your other half are good at book keeping I suggest you find a good bookkeeper and an accountant, your accountant may well know of someone they already work with and can recommend, a good bookkeeper will free you up to concentrate on the business, they will normally only need to see you once a month for a few hours to go through your paper work, work on around £15-£20 per hour for a good bookkeeper.

I see you will be possibly using a car to start with, you will need insurance cover that includes business use, you cannot use your normal car insurance for business use.

Edited February 4, 2017 by old'un

[CharlieT]

What is the difference between self employed and sole trader?

 

 

Nothing, they are one in the same.

[KFC]

Oh right, so what's the catch with going ltd? Surely more people would do it?

If you are a sole trader then you are trading in your own name i.e winnie&bezza trading as Winbez Carpentry and personally liable for assets and liablities.

 

As a Ltd company you are a director of the company and, therefore an employee of the company i.e Winbez Carpentry Ltd and, as the company is the legal entity, the liabilities are limited to the company. If the company went bust then you may not be personally liable for the debts.

 

Another entity, is Limited Liability Partnership, or LLP, but that is more to do with shifting money off-shore and avoiding tax.

[winnie&bezza]

http://www.rossmartin.co.uk/starting-in-business-77750/140-sole-trader-v-limited-company-key-tax-a-legal-differences

 

Back room stuff

 

Unless you or your other half are good at book keeping I suggest you find a good bookkeeper and an accountant, your accountant may well know of someone they already work with and can recommend, a good bookkeeper will free you up to concentrate on the business, they will normally only need to see you once a month for a few hours to go through your paper work, work on around £15-£20 per hour for a good bookkeeper.

I see you will be possibly using a car to start with, you will need insurance cover that includes business use, you cannot use your normal car insurance for business use.

I'll see how it goes as the missus quite fancies doing it, god help me! Yes I thought about the car insurance and have only just renewed. Didn't think I'd be going SE when I did it.

Cheers

[winnie&bezza]

If you are a sole trader then you are trading in your own name i.e winnie&bezza trading as Winbez Carpentry and personally liable for assets and liablities.

 

As a Ltd company you are a director of the company and, therefore an employee of the company i.e Winbez Carpentry Ltd and, as the company is the legal entity, the liabilities are limited to the company. If the company went bust then you may not be personally liable for the debts.

 

Another entity, is Limited Liability Partnership, or LLP, but that is more to do with shifting money off-shore and avoiding tax.

Thanks for info. So really it's a no brainier to go as LTD.

[amateur]

Thanks for info. So really it's a no brainier to go as LTD.

 

There is a touch more admin with a limited company but it starts to pay off once you are paying tax at the higher rate.

 

Speak to a Chartered Accountant

[winnie&bezza]

 

There is a touch more admin with a limited company but it starts to pay off once you are paying tax at the higher rate.

 

Speak to a Chartered Accountant

I've got a gas engineer mate who's not long gone his own as a Ltd company so I'll get him round for a chat. I do need to talk to an accountant as it's all a bit of a minefield to me. Thanks.

[Davyo]

I haven't registered as self employed yet as I'm still on the firm I work for and not sure when I'm leaving as the boss got back from a month in New Zealand today and doesn't know yet. I know it's not going to go down well as it leaves the firm in a big mess so he might get the hump and say go now. Can I register self employed now or wait til I leave? Can you keep receipts for stuff I've bought recently for work and claim it even though I bought them before registering SE?

Word of advise from a tax officer, if you get an account, get one on recommendation from another SE tradesmen.The amount of accounts I speak to on a daily basis who don't even know the basics is shocking and it all comes back to bite YOU on the bum. As regards you SE commencement date be cautious as the last thing you need as a Failure to notify.

Good luck on your venture , get registered on your own PTA ( personal tax account) and at least you can keep tabs on what your agent/accountants telling you.

[winnie&bezza]

Yes I'm going ask my plumber mate who he uses etc.

I plan to register SE as soon as possible.

Will do mate and thank you for advice.

[Vince Green]

To be honest, the 'do it for yourself' account books and software you can get now for the small trader, along with the tutorials is all you need these days. As Davyo says a lot of accountants aren't really worth what they cost you.

 

I've been with mine for twenty years now but I can't really say he has been a dynamic force in my business;

[winnie&bezza]

To be honest, the 'do it for yourself' account books and software you can get now for the small trader, along with the tutorials is all you need these days. As Davyo says a lot of accountants aren't really worth what they cost you.

 

I've been with mine for twenty years now but I can't really say he has been a dynamic force in my business;

Yes people have said it's not too hard. Going to whsmith today to get all the books etc. I can imagine they are there just to check it over. Can you claim for tools that have been bought not long ago and before you've registered SE? You could say you bought them for being ready to go SE. Edited February 5, 2017 by winnie&bezza

[Davyo]

As vince says do it yourself,plenty of softwares out there and just sit down once a month and keep your books up to date. Don't let it pile up, remember if you elect an agent/accounts then any mistake they make lands on your door not theirs.Be aware there is a minority if accountants out there who will milk it.Example it your SE you may require a loan or morg in your life time.The providers will ask for proof of income in the form of an SA302( basically a breakdown of you tax return).An agent or accountant will phone the tax office and ask for one to be posted out to them not you.Reason for this is they charge you for the phone call to the tax office and then charge you for the cost of posing it on to you (£15/£25).They know that you can obtain an SA302 yourself FREE by you down loading one form your PTA.

I spend best part of Thursday questioning agent that were purposely keeping people in Self Assessment knowing that there was no SA criteria.I take them out as we don't need anyone completing returns that doesn't meet the criteria (I'm talking expenses claims under £2500 and income from property's under £2500 net.To keep someone in SA with no criteria is a burden on our resources and a burden on the Tax Payer.However if an accountant can see a quick and easy way of making £200 for 10minutes work.

Regarding tools, yes you claim relief some may come under Capital Allowances but there are a few grey areas.However Techs are available to give you the correct advise.Dont take advise from any 3rd party as the guidance on allowable expenses is constantly changing.

Edited February 5, 2017 by Davyo

[winnie&bezza]

As vince says do it yourself,plenty of softwares out there and just sit down once a month and keep your books up to date. Don't let it pile up, remember if you elect an agent/accounts then any mistake they make lands on your door not theirs.Be aware there is a minority if accountants out there who will milk it.Example it your SE you may require a loan or morg in your life time.The providers will ask for proof of income in the form of an SA302( basically a breakdown of you tax return).An agent or accountant will phone the tax office and ask for one to be posted out to them not you.Reason for this is they charge you for the phone call to the tax office and then charge you for the cost of posing it on to you (£15/£25).They know that you can obtain an SA302 yourself FREE by you down loading one form your PTA.

I spend best part of Thursday questioning agent that were purposely keeping people in Self Assessment knowing that there was no SA criteria.I take them out as we don't need anyone completing returns that doesn't meet the criteria (I'm talking expenses claims under £2500 and income from property's under £2500 net.To keep someone in SA with no criteria is a burden on our resources and a burden on the Tax Payer.However if an accountant can see a quick and easy way of making £200 for 10minutes work.

Regarding tools, yes you claim relief some may come under Capital Allowances but there are a few grey areas.However Techs are available to give you the correct advise.Dont take advise from any 3rd party as the guidance on allowable expenses is constantly changing.

Sounds like I should of stayed with the firm haha. It all sounds a bit confusing but I'm probably I've complicating it. Writing all ins and outs and expenditures sounds simple enough though. Once I start then hopefully it will all fall into place. I'll have to talk to someone properly in the know. Thanks for info.

[Davyo]

Nothing complicated mate,it's all about good house keeping,those that throw their paper work on the dashboard of the van lol, and then panicky at the return deadline because the sun has bleached out all the figures etc.Sit diwn for 30 minutes at the end of each month and total up your ins/outs or 10 minutes on every Friday.

Don't panic about tax returns as they are planned to be phased out over the next few years.You will simply doing monthly or 4monthly submissions through the PTA (personal tax accountant) in the future.

[KFC]

Self-employed clock patience used to be an annual game with me until I got a grip of it and started using Simplex D books which set it all out on a daily, weekly, monthly, annual basis.

 

SE clock patience is where you gather up all the receipts and invoices for the year, you then sit on the floor in the middle and arrange them all in twelve piles around you, as in a clock face, then enter the details, one pile at a time knowing that there may be evidence of income missing but also evidence of expenses that could have been claimed if only you could find the receipt.

Hundreds of fun

 

PS. I don't know if Simplex D is available any more.

 

Update, just did a search and, yes, they are available Amazon WH Smith etc. Well worth it.

Edited February 5, 2017 by KFC

[winnie&bezza]

Nothing complicated mate,it's all about good house keeping,those that throw their paper work on the dashboard of the van lol, and then panicky at the return deadline because the sun has bleached out all the figures etc.Sit diwn for 30 minutes at the end of each month and total up your ins/outs or 10 minutes on every Friday.

Don't panic about tax returns as they are planned to be phased out over the next few years.You will simply doing monthly or 4monthly submissions through the PTA (personal tax accountant) in the future.

Yeah well I'm a bit if a procrastinator but I'm really going to try to keep on top of it. That sounds a lot better then! Many thanks again