My feed

to access all these features

Find financial and money saving discussions including debt and pension chat on our Money forum.

Money matters

Can anyone give me an idiot's rough guide to being self-employed but not earning that much?

7 replies

PrismManchip · 05/01/2008 08:43

I have no idea what one has to do. I imagine there are slightly different ways of doing things (DH mentioned something about 'registering your name as a company??') but don't know what the advantages/disadvantages might be.
I know you have to Keep Receipts but beyond that, am a dunce.

OP posts:
evenhope · 05/01/2008 11:49

You must register with HMRC within 3 months. If you aren't going to be earning much you can get a small earnings exemption from paying national insurance. (HMRC do a booklet which they will send you when you register).

You need to keep proper records of all your incomings and outgoings, and your receipts.

PrismManchip · 05/01/2008 15:04

OK thanks
That's a start!

OP posts:
preggersagain · 05/01/2008 15:08

if you won't make more than your personal tax allowance (just over 5k i think) per year then stay as a self employed sole trader and pay no tax!!- its worth paying the 2.20 per week nat ins contributions incase you ever need to claim contributions based benefits such as maternity allowance or ncapacity allowance- if you get an exemption certificate they will pay you next to nothing


morningpaper · 05/01/2008 15:09
  • registered with HMRC as self-employed (ring them and fill in the form)
  • Pay NI bills that come through quarterly once you've done the above
  • Keep a spreadsheet with your income/expenditure (e.g. stationery) and a folder with your original receipts/invoices
  • Complete your Tax Assessment form at the end of each year (automaticaly sent to you) with the info from your spreadsheet

that's it really
Wisteria · 05/01/2008 15:09

I am a self employed book keeper/ accountant, so deal with both ends of the spectrum. Feel free to email with any queries at all - [email protected]

Keep everything and register with HMRC for a start. You don't need to be a registered company, no need.

Keep records of where you go for everything, even if going to buy stationery at the supermarket.

I would open a bank account in your chosen name
and keep things separate - makes life easier. Abbey is free and very good.

PrismManchip · 05/01/2008 19:53

Brilliant, this is just what I wanted
Many thanks xxPruni

OP posts:
Judy1234 · 05/01/2008 20:36

And on the company thing if you are worried people will take you to court if you get things wrong if you trade through a limited company then it is not your house and assets on the line, just the company. On the other hand that may not be a concern for you and a company is a bit more complex and expensive. If you want to protect the business name you might register it as a trade mark not as a company name, to stop others using it.

Please create an account

To comment on this thread you need to create a Mumsnet account.