Question / Discussion Registering as Self Employed help

rich110991

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Hi, sorry if these questions are silly but I’ve never been self employed so I don’t know how it all works.

I’ve been making money online and with apps since February and I was also off sick from work until April 2nd (yesterday). I’ve left that job as of yesterday but I’ve also signed up to an agency and started some temporary work for them today which at the moment is only for four weeks roughly, but I might get future work with them too.

I haven’t yet registered as self employed. I didn’t know I was going to make so much. I made £1000+ in March alone. I’ve applied for a Lionbridge job yesterday and it said I needed to be registered as self employed and pay my own tax and that they might check in the future.

I’ve had a look at Gov.uk and I think I’ve found where I need to register and what I need to do. But I’ve saw as well that I think I should then be doing traditional accounting? Does that mean I just need to do like a spreadsheet with the totals from all of the places I’ve made money from per month? And it says to record personal income as well? I’m a bit confused about the difference between the two? Would it be business income is everything I make online and personal income is the job I have with the agency for example?

I remember reading on here too that you can claim money back for for example a laptop? So if I register as self employed tomorrow and buy a laptop next week, when can I claim anything back and how much would I get?

Thanks in advance for any comments :) Still trying to get my head around this.
 

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Hi, sorry if these questions are silly but I’ve never been self employed so I don’t know how it all works.

I’ve been making money online and with apps since February and I was also off sick from work until April 2nd (yesterday). I’ve left that job as of yesterday but I’ve also signed up to an agency and started some temporary work for them today which at the moment is only for four weeks roughly, but I might get future work with them too.

I haven’t yet registered as self employed. I didn’t know I was going to make so much. I made £1000+ in March alone. I’ve applied for a Lionbridge job yesterday and it said I needed to be registered as self employed and pay my own tax and that they might check in the future.

I’ve had a look at Gov.uk and I think I’ve found where I need to register and what I need to do. But I’ve saw as well that I think I should then be doing traditional accounting? Does that mean I just need to do like a spreadsheet with the totals from all of the places I’ve made money from per month? And it says to record personal income as well? I’m a bit confused about the difference between the two? Would it be business income is everything I make online and personal income is the job I have with the agency for example?

I remember reading on here too that you can claim money back for for example a laptop? So if I register as self employed tomorrow and buy a laptop next week, when can I claim anything back and how much would I get?

Thanks in advance for any comments :) Still trying to get my head around this.
Yes you can claim your laptop as an expense and much more!

Have a read
 

rich110991

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Yes you can claim your laptop as an expense and much more!

Have a read
Ok thanks Jon that was really helpful.

So do you not pay tax and national insurance monthly? You pay it in one lump sum at the end of the tax year? And that’s when I’d get the money back for the laptop? So next April?
 

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Ok thanks Jon that was really helpful.

So do you not pay tax and national insurance monthly? You pay it in one lump sum at the end of the tax year? And that’s when I’d get the money back for the laptop? So next April?
New tax year starts next week (2020/2021)

if you bought your Laptop next Friday you would put it down as an expense when you file your tax return between April 2021-January 2022

the amount you paid for that laptop would then be taken off your tax bill

As you saw on that blog post you can also claim for % of your rent / mortgage interest, utility bills, broadband, mobile phone, council tax etc

FreeAgent would take care of all this for you if you are looking for some accounts software that is very “hand holdy”

or you could just use a excel spreadsheet and enter the information from that into HMRC at the end of each tax year.

HMRC don’t care about how you earn your money, they just want the big figure at the end of it!
 
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rich110991

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New tax year starts next week (2020/2021)

if you bought your Laptop next Friday you would put it down as an expense when you file your tax return between April 2021-January 2022

the amount you paid for that laptop would then be taken off your tax bill

As you saw on that blog post you can also claim for % of your rent / mortgage interest, utility bills, broadband, mobile phone, council tax etc

FreeAgent would take care of all this for you if you are looking for some accounts software that is very “hand holdy”

or you could just use a excel spreadsheet and enter the information from that into HMRC at the end of each tax year.

HMRC don’t care about how you earn your money, they just want the big figure at the end of it!
I’m going to use FreeAgent I think Jon. I don’t pay any of those bills you mentioned as I live with parents but I do have a phone contract so I could put that down. What about fuel? If I’m driving to shops for Roamler etc? Does that count?

And since you pay the tax in one sum at the end of the tax year, would you say it’s best to put away say 20% of monthly earnings each month?
 

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I’m going to use FreeAgent I think Jon. I don’t pay any of those bills you mentioned as I live with parents but I do have a phone contract so I could put that down. What about fuel? If I’m driving to shops for Roamler etc? Does that count?

And since you pay the tax in one sum at the end of the tax year, would you say it’s best to put away say 20% of monthly earnings each month?
Yes put away 20-30%
Not sure on petrol. I think you get so much per mile you can claim - @mabozza should know!
 
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rich110991

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Yes put away 20-30%
Not sure on petrol. I think you get so much per mile you can claim - @mabozza should know!
I’ve just registered, thanks Jon :)

I just put that I started on April 1st, that’s ok isn’t it lol? Then I can record going forward from April when I sign up to FreeAgent.
 

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I remember reading on here too that you can claim money back for for example a laptop? So if I register as self employed tomorrow and buy a laptop next week, when can I claim anything back and how much would I get?

Thanks in advance for any comments :) Still trying to get my head around this.
Just to point out that they don't physically give you the cashback for your expenses, such as a laptop. You deduct that from your income which lowers the amount you pay tax on. If you end up paying no tax then you don't get that money for your expenses given to you. Similar if you only end up having to pay £50 in tax but have spent £700 on a laptop you won't be given the difference.
 
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rich110991

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Just to point out that they don't physically give you the cashback for your expenses, such as a laptop. You deduct that from your income which lowers the amount you pay tax on. If you end up paying no tax then you don't get that money for your expenses given to you. Similar if you only end up having to pay £50 in tax but have spent £700 on a laptop you won't be given the difference.
Ah I’m with you. Thanks Jon.
 

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I’ve just registered, thanks Jon :)

I just put that I started on April 1st, that’s ok isn’t it lol? Then I can record going forward from April when I sign up to FreeAgent.
also don’t forget you can claim the cost or FreeAgent as well as “computer software” :)
 
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rich110991

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If I have a job as well as being self employed and my job personal earnings are say £515 and I paid tax on it, and my self employed earnings are under £1000, do I still need to put away 20-30% of my self employed earnings or is it only when I’ve made over £1000? Because this month I’ve had about £500+ from my job and only about £400 self employed earnings.
 

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If I have a job as well as being self employed and my job personal earnings are say £515 and I paid tax on it, and my self employed earnings are under £1000, do I still need to put away 20-30% of my self employed earnings or is it only when I’ve made over £1000? Because this month I’ve had about £500+ from my job and only about £400 self employed earnings.
When your Self employed earnings for the tax year go above £1000, register with HMRC see
After April 2021 fill in your self assessment where you will put down details from your P60 in your PAYE job and details of how much you have made from your self employment.
Your PAYE work is taxed at the source I would guess while your SE ones aren't so it's THAT which you need to put 20-30% aside.

The alternative is that you select the option to pay any tax you owe from self assessment via your PAYE job in which case they will just take a set lump sum over 12 months from April 2022-April 2023
 

rich110991

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When your Self employed earnings for the tax year go above £1000, register with HMRC see
After April 2021 fill in your self assessment where you will put down details from your P60 in your PAYE job and details of how much you have made from your self employment.
Your PAYE work is taxed at the source I would guess while your SE ones aren't so it's THAT which you need to put 20-30% aside.

The alternative is that you select the option to pay any tax you owe from self assessment via your PAYE job in which case they will just take a set lump sum over 12 months from April 2022-April 2023
I'm already registered as self-employed. We said earlier in the thread that if I make over £1000 per month I should put aside 20-30% for the tax bill. So I'm just asking basically if I include my personal earnings in that £1000, I don't think I have to as I've already been taxed on that. So this month I'm thinking I haven't earned enough through being self-employed to need to put aside any money for tax.
 

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I'm already registered as self-employed. We said earlier in the thread that if I make over £1000 per month I should put aside 20-30% for the tax bill. So I'm just asking basically if I include my personal earnings in that £1000, I don't think I have to as I've already been taxed on that. So this month I'm thinking I haven't earned enough through being self-employed to need to put aside any money for tax.
you just put 20/30% of your self employed earnings to one side

your PAYE is taxed at the source before going to your bank account

remember its your total for the year, not the month so if you earn £500 for 12 months of the year the total you give HMRC would be £6000 and they would then expect you to pay 20/30% of that amount for your tax bill
 

rich110991

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you just put 20/30% of your self employed earnings to one side

your PAYE is taxed at the source before going to your bank account

remember its your total for the year, not the month so if you earn £500 for 12 months of the year the total you give HMRC would be £6000 and they would then expect you to pay 20/30% of that amount for your tax bill
I'm aware of all of that. I'm not sure if you read what I wrote properly? My question is quite simple. If I have made less than £1000 of self-employed income alone this month, do I still need to put aside 20/30% for tax?
 

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I'm aware of all of that. I'm not sure if you read what I wrote properly? My question is quite simple. If I have made less than £1000 of self-employed income alone this month, do I still need to put aside 20/30% for tax?
yes because you might made £400 this month and then £500 the next month and £600 the month after that so all those months will add up and it's that total you need to pay 20%/30% off

Just to keep it simple just always put 30% away of everything you earn from your self employed and then you will be in good standing when the bill comes
 
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rich110991

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yes because you might made £400 this month and then £500 the next month and £600 the month after that so all those months will add up and it's that total you need to pay 20%/30% off

Just to keep it simple just always put 30% away of everything you earn from your self employed and then you will be in good standing when the bill comes
Got ya, thanks.
 

rich110991

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Do I have to include money I get from shares on Trading212 as taxable income?

I know things like Shoppix I don't have to include. But just unsure about the rest of the stuff I'm doing.
 

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Do I have to include money I get from shares on Trading212 as taxable income?

I know things like Shoppix I don't have to include. But just unsure about the rest of the stuff I'm doing.
Income from financial trading has to be declared but if you want to be double sure and maybe find out if there is a threshold you need to pass it might be worth dropping HMRC a line or going on their live chat
 
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