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

[PrismManchip]

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.

[evenhope]

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]

OK thanks
That's a start!

[preggersagain]

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

HTH!

[morningpaper]

• 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]

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]

Brilliant, this is just what I wanted
Many thanks xxPruni

[Judy1234]

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.