Ok im just starting up how do i go legal

[dj-jaym]

How do i go fully legal registering for tax etc ?

DO i get a tax bill at end of year ?

Can i offset what ive shelled out ?

[BeerFunk]

Welcome to the 'hood

You'd probably get more in-depth answers searching the forum for older posts, then posting any questions you have to clarify things

[Solitaire Events Ltd]

How do i go fully legal registering for tax etc ?

DO i get a tax bill at end of year ?

Can i offset what ive shelled out ?

Welcome to the forum.

Start a new thread in the newbies section and introduce yourself properly.

This might help http://www.hmrc.gov.uk/startingup/register.htm

[Ricesnaps]

How do i go fully legal registering for tax etc ?

DO i get a tax bill at end of year ?

Can i offset what ive shelled out ?

To be a little more helpful -and don't take this lightly, this is certainly not a simply topic....

Step 1 - Call you local tax office and tell them what you are doing
Step 2 - I think they send you a form to fill in - fairly easy
Step 3 - Keep EVERYTHING! Reciepts that is, everything you ever buy! It is worth remembering that if you buy a pair of trousers to wear to work and then use them for the disco work too, then you could claim they were business use! (that's a very very very simplified explination!)
Step 4 - Complete tax return (which will be sent to you in a thick package once a year) before 31st Jan (and if you don't GROVEL!!!! and you might save a fine - I did!).

Basically, everything you buy for the business can be set against income. You only pay tax on what is left of your income once you have taken off everything you bought - or nearly!

There is a little thing called capital equipment - which as I understand it would be large items of kit, maybe a van, car etc... Although I can't remember the percentage, you can't offset all of these purchases against your income - I think you can use 50% in your first year and then a smaller percentage of what's left year on year!

Finally, when you have worked out your profit, the tax man will charge you tax - always pay your tax!

By the way, if you are really successful, you may need to also register for VAT - at a certain level of income (not sure what it is) you HAVE to register, but as I understand it, you can register off your own back if you want - which I think means you can clain VAT back on purchases. However as I was always told that is a real pain in the ass, I've never done it.

Tax made easy by Ricey! Hope it helps a little.

Now where are the experts?

[Solitaire Events Ltd]

To be a little more helpful -and don't take this lightly, this is certainly not a simply topic....

Step 1 - Call you local tax office and tell them what you are doing
Step 2 - I think they send you a form to fill in - fairly easy
Step 3 - Keep EVERYTHING! Reciepts that is, everything you ever buy! It is worth remembering that if you buy a pair of trousers to wear to work and then use them for the disco work too, then you could claim they were business use! (that's a very very very simplified explination!)
Step 4 - Complete tax return (which will be sent to you in a thick package once a year) before 31st Jan (and if you don't GROVEL!!!! and you might save a fine - I did!).

Basically, everything you buy for the business can be set against income. You only pay tax on what is left of your income once you have taken off everything you bought - or nearly!

There is a little thing called capital equipment - which as I understand it would be large items of kit, maybe a van, car etc... Although I can't remember the percentage, you can't offset all of these purchases against your income - I think you can use 50% in your first year and then a smaller percentage of what's left year on year!

Finally, when you have worked out your profit, the tax man will charge you tax - always pay your tax!

By the way, if you are really successful, you may need to also register for VAT - at a certain level of income (not sure what it is) you HAVE to register, but as I understand it, you can register off your own back if you want - which I think means you can clain VAT back on purchases. However as I was always told that is a real pain in the ass, I've never done it.

Tax made easy by Ricey! Hope it helps a little.

Now where are the experts?

£60K for VAT Rice.

And the link that I posted will tell you exactly what Rice has just posted without the "I can't remember the percentages" or "I don't know exactly" :teeth:

Also, get an accountant. They will save you money in the longrun and don't listen to anyone who says do it yourself.

Accountants know their business and know a lot more than the revenue will offer you with regard to tax savings.

[DMX Will]

By the way, if you are really successful, you may need to also register for VAT - at a certain level of income (not sure what it is) you HAVE to register, but as I understand it, you can register off your own back if you want - which I think means you can clain VAT back on purchases. However as I was always told that is a real pain in the ass, I've never done it.

You also have to charge VAT if you are registered. Meaning either your prices increase by 17.5% of you get paid 17.5% less (thats what puts people off)

[Have a disco]

suggest doing it online so much easier and If you want to do it yourself you can just ensure you dont earn a lot as the tax man is good at weeding information out of you

So yep keep a record of every expence made only get an accountant id you feel you cant keep track of it. but there are plenty of software programmes out there you could use that are fairly cheap inland revenue even supply a disc if you get to successful. Below 15,000 a year Id say do it yourself, above that figure get one and don't forget to pay your NI stamp

[Solitaire Events Ltd]

So yep keep a record of every expence made only get an accountant id you feel you cant keep track of it

It's nothing to do with keeping track of it. They know the law, the loopholes and the best way to save you money.

Why would the revenue want you to save money, so they get paid less tax?

[Have a disco]

But if you do not earn more than 15,000 a year its a negligable arguement you could quiet easily do without one. And do it yourself but If you feel you can afford to waste £300+ on an accountant a year then buy all means do so. But at the levels of £3000 - 5000 so far it is not worth me doing so as my costs are currently wiping profit to below even the basic level of paying stamp.

But I am still building my business so I expect it

[Solitaire Events Ltd]

If you feel you can afford to waste £300+ on an accountant a year then buy all means do so.

Yeah, waste £300+ on an accountant to save yourself a lot more in tax....