Starting out self employed

[Jperez90]

Hi all, im currently working my last weeks notice at my full time job, and becoming a self employed tiler to a local tiling company, im currently in my final year on my Part time nvq level 2 tiling course. Iv never been self employed so i was wondering what the first things i need to do when becoming self employed??? Any help would be appreciated! Cheers

 

[DHTiling]

This will be a good start..>>> HM Revenue & Customs: First steps to register as self-employed

 

[Peter]

You'll need to register self employed within the first 3 months and do a yearly tax return by 31 January. Keep all receipts for absolutely everything and if you're getting paid on the CIS scheme with tax deducted from your wages then you'll get a nice tax rebate every year. If you're not paying tax at source then you'll need to put a bit aside every month to pay your bill. Bills can be split by paying half in January and half in July. You'll also need to pay National Insurance contributions every quarter, which work out at about £2.50 a week.

A decent accountant will keep you right.

 

[suave]

:welcome:

 

[Jperez90]

Is there anything else i need to pay for monthly or is it just tax and N.i??

 

[Martino]

And remember being self employed is not always a fairytale!....you need to spread your earnings and save up for any dry work spells.....everyone gets them...i can guarantee you that

 

[bugs183]

Hiya. As above, 100% make sure get in the habit of putting of putting your tax away where it doesn't get spent, i invested mine wisely in the pub, but the Tax man still wants it
It's also a good idea to get public liability insurance in case of any accidents to property, some builders insist you have it.

 

[White Room]

Hi and welcome.....A good accountant may help you.

 

[peteablard]

What's your plan, domestic, commercial or bit of both? As mentioned above a good accountant is a must IMO

 

[Jperez90]

Well im going to start of working with another tiling company for a few months to get some experience and confidence then go from there! Wheres the best place to put the money aside for when the tax comes around? Savings account?? Or would u recommend setting up a business account and leaving it in there?? Cheers

 

[White Room]

Keep it in a saving account......

 

[Peter]

Keep it where you'll get the best return for it while it's building up. I'd be asking about CIS though, it's definately less hassle and it's always nicer to receive a lump sum than to pay one out.

 

[Jperez90]

Maybe a stupid question but Whats CIS??

 

[White Room]

HM Revenue & Customs: Construction Industry Scheme