Registering as self-employed

£15

£15

£15

Associate
Joined
7 Nov 2012
Posts
1,612
Location
UK
There must be a fair few self-employed people on this here forum, so I'm hoping you can offer some advice for my wife.

She started painting several months ago and after lots of people commenting on how much they liked her art and suggesting she could sell it, she started going to art fairs, etc and has done just that - started selling her paintings.

She got herself a Facebook page. Got business cards printed. And has plans to spend more time on her artwork: going to more shows, etc.

She has been a full-time mum for many years and this could be the start of something interesting. Maybe not big, but just a little extra to help pay the bills. ;)

So, my question is what are her options as far as the tax man?

Does she need to register as self-employed? Start keeping accounts? Should she set up a 'company'? Can she buy a new laptop and claim the VAT back? ;)

Any and all advice will be greatfully received.
 
Go here: https://online.hmrc.gov.uk/registration/individual

Register for self assessment.

Keep full accounts of all your income and expenditure, a simple cash book with money in and out and a tub for receipts, have a separate bank account for anything to do with business (it doesn't have to be a proper business account, just a new current account so that your business income and expenses don't get mashed in with personal things), I would suggest looking into simplified expenses also if she is working from home.

https://www.gov.uk/simpler-income-tax-simplified-expenses/overview

Otherwise its pretty simple.
 
Will working from home (she paints at home) have an effect on things like home insurance? I vaguely recall seeing a question about working from home.
 
BadMojo said:
Will working from home (she paints at home) have an effect on things like home insurance? I vaguely recall seeing a question about working from home.
Click to expand...

Never told my insurance, when I made a claim they didn't ask.
 
BadMojo said:
Will working from home (she paints at home) have an effect on things like home insurance? I vaguely recall seeing a question about working from home.
Click to expand...

not unless clients are visiting the premises. I am self employed, work from home 3 or 4 days a week and i spoke to my insurance who said unless I had clients visiting my home, there was no need to change insurance.
 
I am guessing if she did want to go the self employed route it would be as a sole trader. Much simpler than starting a a limited company... though as a sole trader you are liable for any debts the company gets into... I don't think she can claim VAT unless she is VAT registered..

business tax is only paid on net profits, so if she makes money but spends it on supplies/laptops etc, even as a salary for herself then the company wouldn't pay tax. I think she can even pay herself up to around £110 a week to avoid paying income tax and even avoid paying NI through the company... Note it is best to speak to an "experienced" accountant about all of this :D and how they go about "handling" things ;)
 
I think it's not necessary. The main thing here is to give the proper tax return and make accurate calculations. What's more, your wife needs a website for her business because fb page is good, but not enough. She should create a website with further optimization))))
You can read useful info here) source
 
BadMojo said:
There must be a fair few self-employed people on this here forum, so I'm hoping you can offer some advice for my wife.

She started painting several months ago and after lots of people commenting on how much they liked her art and suggesting she could sell it, she started going to art fairs, etc and has done just that - started selling her paintings.

She got herself a Facebook page. Got business cards printed. And has plans to spend more time on her artwork: going to more shows, etc.

She has been a full-time mum for many years and this could be the start of something interesting. Maybe not big, but just a little extra to help pay the bills. ;)

So, my question is what are her options as far as the tax man?

Does she need to register as self-employed? Start keeping accounts? Should she set up a 'company'? Can she buy a new laptop and claim the VAT back? ;)

Any and all advice will be greatfully received.
Click to expand...

1. Yes you HAVE to register self employed, if you have traceable cheques etc going into the bank account, you need to date the start of the business before that

2. Start keeping accounts , a spreadsheet is a good start (it is what I have done mine in the last 5 years)

3. Set-up company , need to seek professional advice on that one , I am sole trader

4. Buy new laptop ? IF it is only used for business use then you can claim the full value of it as an expense. You can only claim VAT back on if you amke more than 71K turnover and you are VAT registered (total ballache)

I went on a 5 day start you own business course when I began , it explained everything really realy well , these are usually free and run by your local business developemtn agency

Other advice , think about joining the FSB - has great membership stuff , including a free business account with the COOP bank. Most banks charge for business accounts .....
 
Last edited:
You must log in or register to reply here.
Back
Top Bottom