Just went Self-Employed... could somebody explain the Tax/VAT side of it in simple terms?

[MrsBigD]

I'm now working on a self-employed basis as a Persnal/Executive Assistant...

I've not yet received my pack from the HMRC but had a look through their website re all the financial issues arising, however can't see wood for trees ... could somebody put it in simple English please re

what could be classed as tax-deductible? Mileage?
Home Office (do some work from home)? stationary used at home?
mobile phone/laptop use?
Do I need to charge/claim back VAT?

basically have no idea LOL

Or do I just horde the money and skip the country at the end of the tax year? [win#

bump buess I'm the only one up at a ridiciously early hour on Saturday

you only need to worry about vat if you are above the threshold.
employ an accountant and they will advise.

Hi - just going out, I can let you know some stuff later?

I'm self employed and know where you're coming from, it's a minefield out there!

Ok, anything you use for work, including mileage, stationary, phone etc. can be classed as tax deductable as long as it is all accounted for. Keep records of every single expenditure incured through work, for phone bills you might need itemised billing to work out personal/work use.

I have an office at home and have worked out the rough electricity and heating used there and include that too.

You have to register for VAT if at the end of any month the total value of the taxable supplies you have made in the past twelve months or less is more than the current threshold of £64,000. That's turnover, not profit. Does that make sense?

Thanks OverMyDeadBody (love the name)

daft question... how do I work out how much electricity/heating my little box room office uses? is it done by size in relation to the rest of the house?

Shall start little log book for my mileage to/from work, just not sure how to charge that with petrol prices fluctuating as they are

Are my services taxable supplies? Doubt very much I'll get over £64,000 for the tax year as we're migrating in May 2008 and I've only just started up self-employed, so does that mean I don't have to worry about VAT?

Cazboldy - I'd rather not spend money on an accountant... don't earn all that much

katymac yes please

No VAT for the first £65,000.00

You know you can get a great hand-out from HMRC, I had to learn this for my work. Their website is quite useful, although much of what you need has been said by Overmydeadbody.

Good luck.

Thanks positivelymellow, I did have a look at the HMRC website, but brains a bit muddled and wading through all their stuff gave me a headache... I'm the 'give me a short concise summary of what I need or I might get confused by all that legal lingo' type LOL

I know that feeling. I stupidly printed it all off...I had 380 pages of complete garbage [gulp] although the vital facts are in there...somewhere.

Hi,

Yuo may already have looked at this, but this helpsheet gives details about mileage claims. It also has what appears to be a mileage chart and a bit about claimable expenses

DP claims a standard £3 per week for using a 'home office' - but the main part of his job is spent on hte road (he is a driving instructor).

Thanks SMS I'll have a look at that helpsheet later. Hadn't found that one yet

If you hadn't seen that you may not have seen these.

Scroll half way down to self employment section. The actual form and notes are there (SA103) so you can see in advance exactly what needs to be filled in which will hopefully give you an indication ofhte info you will need.

I would suggest that IR229 would also be helpful.

Be aware that you will also have to fill in the main part of the form SA100 which is mostly about personal income - pensions, bank interest, shares.....

they run really good workshops (free) for the newly self employed and they cover prettu much everything. I found it very very helpful when I first started. Also if you need some more advice afterwards you can see a personal advisor, again for free.
RE VAT, might look more professional if you are registered, only means your fees will increase by 17.5% BUT most companies will be able to claim this back

Good luck!

Right - speak to business link They do great business start up courses (& they are normally free)

Mileage seems to have been dealt with - but I claim 40p a mile

Keep a book (or a spreadsheet)& write down everything you buy for the business - If it's only used for the business you can claim the whole amount - if you use it in the house as well you can claim a bit

thanks all that's given me a good starting point