Self employment / Good childrens savings account?

[tamula]

Is it best to use an accountant to do your tax returns and how should one sort ones receipts and invoices etc? What to keep what not to keep?!! (consider me as ignorant as can be with such matters!!)

Also can anyone recommend a good childrens savings account?

Many Thanks

my dd has an abbey flexisaver account. it has normal interest rate and i can easily check the amount online (mostly want to see if my payment in get there!). it also came with a cash card for me. i'm happy with it so far.

If you are just starting out self employed you do need to tell the IR otherwise they can fine you. Whether you need an accountant or not will depend on the size and complexity of the business and your own ability to deal with the IR and their requirements. If you do choose an accountant, make sure they have recognised qualifications - we employed someone on a friend's recommendation and when it came time for us to remortgage we found that she had no qualifications at all that the bank would accept. We had to have all the books re-done (and had to pay for each year's worth again!!) to submit to the bank. I saw what the accountants did and after a year or two realised I could do that myself, so we don't use one anymore.

Thanks guys

We are registered and have a zillion receipts and invoices but not sure what to do with them and we've received a form from the tax office wanting us to send receipts and invoices and pay-up, but we dont know where to start!

[confused emoticon]

Hope you don't mind if I borrow your thread, tamula?

I do a v small job on a self-employed basis (compiling events listings from the internet for 3 different Primary Times mags) - I get paid about £2700 a year so well within allowances. I've been doing it for 2 years but have no records and haven't declared any of it because I never got around to it, but having read jan's comment about fines I have just emailed all 3 to ask for a statement of payments!

Obviously for that amount of money it's not going to be worth paying an accountant, but can I claim anything against the cost of my PC and broadband connection, and if so how much? All advice gratefully received!

tamula, I read v recently about a Halifax kids' account that pays about 7%, but there are strings attached, will try to find details for you.

Blimey, it's 10%!!!!!

Guardian article

I would appreciate advice too. I know I am going to have to work for another 15 years plus. I am in a franchise, so technically self employed I think. I too have not earned enough to pay tax until the last two years, which I understand is 6 grand or over? I am soo scared to phone the tax people, 'cos I'll look an idiot and also like I'm trying to defraud or whatever it's called. Any ideas how to straighten out the mess, wthout receiving a massive tax bill or a visit from the police, IR?

Personal allowance for this year is £4895, jollymum - then it's 10% on the next £2090, 22% on the next £30310, and 40% after that. All thresholds were slightly lower last year. And if you do have allowable costs you can add them to the £4895 (I think!)

(Actually typing that made me realise that if I don't earn enough to pay tax I can't claim anything against tax payments, duh. )

Tamula what form have you got to fill out, and why are they asking for your receipts? Is it a tax investigation rather than just a return? Jollymum and JanH I think you should call the tax office to discuss, and also have a look at their website - they have a couple of good leaflets on starting up in business and what you need to do re national insurance contributions etc.

Actually janinlondon,

I'm not even certain if they want the receipts its for a tax return, but dont you need receipts for that? Oh heck, I'm just so dim with this sort of thing, an accountant would just love to see me coming their way

I just looked and its a tax return thingy, complete with guide an all and still dimbo here doesnt get it.

I was self employed for about 2 years before I told the IR. I just didn't get round to it! very silly I know. In our local library they have some one from the IR every week who you you can go down to see and she was very helpful. She took all my details and the dates that I started self employment (so from the beginning of those 2 years that I didn't declare anything) and that was it. I then got a 2 separate tax returns sent to me to fill in for those 2 years. I sent that back and they wrote to me to tell me how much tax I had to pay. It just happened that I didn't earn enough to be taxed anyway, therefore I didn't have to pay the fine for not telling them that I was self employed.

I have to admit I was very scared as I know what they are like, I've seen it with my dad. But you should definately not leave it any longer, let them know and they'll send you all the stuff you need

Tamula, have you tried doing your tax return online? That's how I do mine. Basically they tell you what boxes to fill in and everything. Then if they want reciepts and stuff they'll write to you and ask for them I imagine.

When I first looked at the tax return form I was like what is this, I didn't know where to start, but doing it on line is so much easier and it calculates your tax immediately.

I think if you earn over 15000 though it starts to get a bit more complicated because they want a break down of everything.

get an accountant, it's much easier!

You won't need to send in receipts with your tax return. Just make sure you keep them so if they ask for them you can provide them. Are you aware of all the things you can claim for, ie deduct from your profit, if you're self-employed? Things like use of home as office, bank charges, phone, ummm mind's gone blank! I'm sure others will come up with some. Anything that is an expense of your business.

Tamula I am PMSL. "Its a tax return thingy"!! You will have to get organized, or get an accountant. Presume you have some idea of whether the income is over the tax threshold? If its not, an accountant's fees would probably be more than they're worth to you. Maybe you should start with the actual amount you have received through the business. If you break it down into simple tasks like this you can do it easily - either online or on the paper form. If you are self employed AND had paid employment, you have to consider both incomes when working out the tax threshold.

thanks janinlindon and all else