what accounting or tax things would you like to know

(20 Posts)
emma123456 Mon 08-Apr-13 18:08:40

I am doing a 10 min presentation to a group of self employed ladies and would be grateful for some ideas of what I can talk anout which will be of interest. I am a chartered accountant that specialises in small businesses. Id like to avoid everyone having a snooze during my 10 mins

SorrelForbes Mon 08-Apr-13 18:10:46

RTI (PAYE)
VAT
End of Year returns
P45s/P60s

None of it very thrilling though.

BuiltForComfort Mon 08-Apr-13 18:16:15

NICs - how the classes work, do you keep contributing if you make a loss or suspend trying for a while? I am sure your presentation will be useful & interesting!

Would you consider doing an advice thread here please? smile

BuiltForComfort Mon 08-Apr-13 18:17:11

Grr - trying should have read trading. Although I'd like to stop trying too sometimes!

if you sell your business with stock is it all classed as declarable income you will have to pay tax on?

BuiltForComfort Mon 08-Apr-13 18:18:56

Tax breaks / allowances / expenses?

Best way to get advice from HMRC?

Don't know if they are newbie or experienced group, you can tell I'm a newbie!

Takver Mon 08-Apr-13 18:27:58

The advantages/disadvantages of being a limited co vs self employment?

RTI & auto enrollment maybe, but perhaps people will be read up on them both by now (perhaps not auto enrollment - but I guess it depends if they have employees whether it is relevant)

emma123456 Mon 08-Apr-13 21:02:19

Thats fab, thank you for the ideas.

cakeaddict Mon 08-Apr-13 23:17:26

Tax expenses specifically related to working from home - what you can/can't claim, what the implications are.

Benefits of sole trader vs limited company - when is it worthwhile to switch?

MrAnchovy Tue 09-Apr-13 00:14:47

@BuiltForComfort

As self employed there are 2 types of NI that you pay:

Class 2 NI is a fixed amount, now £2.70 a week, usually paid monthly or six monthly in arrears. Paying this clocks up time towards your Basic State Pension and entitles you (or your family if you die) to some benefits, mainly Maternity Allowance.

If you earn less than £5,725pa (or are making a loss) you can apply for exemption from Class 2, but because of the benefit accrual you should only think about this if you are already getting credit towards the basic state pension (e.g. if you are eligible for Child Benefit for a child under 12) and you are not going to qualify for Maternity Allowance.

Class 4 NI is basically just additional tax which is only paid by self employed people. Like income tax there is a threshold before you have to pay it, but at £7,755 (2013/14) this is now a fair bit below the income tax threshold. The amount you pay is calculated on your profit after allowable expenses, exactly the same as your profit for income tax purposes, and is due at the same time as income tax. The rate is 9% on profits between £7,755 and £41,450 then it falls to 2% in a similar way to Class 1 contributions for the self employed.

Many one-person business decide to operate as a Limited Company and take the majority of their income as dividends. Companies do not pay Class 4 NI so this can be a substantial saving.

Note that if you are over State Pension age (or younger than 16) you don't have to pay NI at all.

Finally Class 3 NI can be paid to make up years for the basic state pension: it is only worth considering this if you are nearing state pension age and you should take further advice.

MrAnchovy Tue 09-Apr-13 01:21:49

@noyouhavehadawee

There are a number of ways to sell a business each with different tax implications: you should see an accountant. When you sell a business stock is usually valued at cost so there is no profit on it to pay tax on.

MrAnchovy Tue 09-Apr-13 01:23:24

@BuiltForComfort

You can't get advice from HMRC - not on how to arrange your affairs in the most tax efficient way anyway.

MrAnchovy Tue 09-Apr-13 01:34:04

@Takver

Advantages of a limited company:
Noone can take your house (unless you use it to borrow money from the bank) or tie you up in court for years.
No Class 4 NI - On £20,000 profit save over £1,100 a year.
You can give yourself (and any other employee) childcare vouchers potentially saving £580 a year.

Disadvantages:
More paperwork, you need an accountant really, so only start to save money on profit over £15,000+

MrAnchovy Tue 09-Apr-13 01:38:09

@cakeaddict

You can claim a proportion of most costs, from electricity to mortgage interest, based on how much of your home you use for your business and how much time you use it for business and how much for your family.

These calculations are not simple though and if you do not do the apportionment correctly you risk incurring Capital Gains Tax on the sale of your home so I don't recommend you do this without professional advice; otherwise there are no implicaiotns other than paying less tax!

Blipbip Wed 10-Apr-13 08:31:24

@MrAnchovy

You are my current herogrin

I have spent all day yesterday getting to grips with my basic book keeping, just a year after starting the business. I feel so much better just for knowing what I have spent my money on.

If it was me you were pitching to OP I would be asking really basic questions like how many columns should I make? should I use colours? Do I put income on a different page to expenditure...

But I have had no training at business let alone accounts and book keeping so I love to know the absolute starting point. I am a professional who found that I have to run a business.

Talkinpeace Wed 10-Apr-13 21:46:51

Over the past 8 years I have condensed the answers to questions I have answered on internet forums into my Ebay "ME" page.
So long as you do not take credit for it, you are welcome to use it as a resource.....

Google my name and you'll find it.

SizzleSazz Wed 10-Apr-13 21:48:44

Depending on their income levels, then flat rate VAT and annual accounting for VAT can be very useful

Blipbip Thu 11-Apr-13 09:29:47

Googled it Talkinpeace and Wow! certainly helps sort out some basic book keeping questions, thanks.

Talkinpeace Thu 11-Apr-13 14:38:39

members.ebay.co.uk/ws/eBayISAPI.dll?ViewUserPage&userid=talkinpeace

can post the link now I'm back on my proper 'puter ....
will do an update on it at some stage over the next few weeks as I should probably mention RTI

DolomitesDonkey Sat 13-Apr-13 16:13:37

Yes. Can I claim anything on my private members bar membership under the guise of "networking"? grin

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now