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deejay_deejay
20-09-2007, 03:48 PM
Does being only 17 affect how you/how much you pay tax as a sole trader?

Does it affect registering as a sole trader?

Solitaire Events Ltd
20-09-2007, 03:55 PM
Does being only 17 affect how you/how much you pay tax as a sole trader?

Does it affect registering as a sole trader?

No, you'll pay tax as soon as you're old enough to do so. Being a sole trader has nothing to do with it.

You might want to say hello in the newbies section of the forum, before steaming in with your questions! :)

DMX Will
20-09-2007, 08:41 PM
You pay TAX at whatever age you are.

Everyone in the UK gets whats called a personal allowance (its about £5k this year), you don't pay tax on your personal allowance amount. Only any money earned after that.

If you don't earn more than 5k profit, you won't pay TAX in that year.

If you have another job where you get paid by PAYE (You get a payslip) then your profit from your disco business goes on top of that. So you don't get two lots of £5k which arn't taxable.

Example:

Disco Profit for Year: £3,000
"Saturday Job" Pay: £4,000
Total income: £7,000.

You get £5,000 of the £7,000 tax free (as that is your personal allowance). So that leaves a further £2,000 that you would have to pay TAX on.

HTH.

Vectis
20-09-2007, 09:00 PM
Don't even get started on National Insurance.... :rolleyes:

DAZLIN01
20-09-2007, 09:04 PM
Like the others have said you can get taxed at any age (i.e. from birth) on any income.

This years tax allowance is up to £5229 (which you can earn before paying tax)

After this you pay 10% on the next £2230, and 22% on anything from £7459 to £34600, and 40% for anything over £34600.

Bear in mind that if you have a full time job too you'll be paying Basic Rate (22%) on everything you earn on your second source.

I knew my payroll qualification would come in handy one day!! :D

All the info you need is on www.hmrc.gov.uk

... This is until 6th April 2008 when the 10% band is abolished and it's a lovely 20% on evry thing upto £35000!!!!

Hope this helps?

Darren

DAZLIN01
20-09-2007, 09:06 PM
How could I forget NI??

I won't even start to explain that! The Revenue and Customs site should hold all the info you need, if in doubt ring your tax office they'll be more than helpful I'm sure!

Solitaire Events Ltd
20-09-2007, 09:06 PM
Example:

Disco Profit for Year: £3,000
"Saturday Job" Pay: £4,000
Total income: £7,000.

You get £5,000 of the £7,000 tax free (as that is your personal allowance). So that leaves a further £2,000 that you would have to pay TAX on.

HTH.

Not forgetting your expenses of course.

Vectis
20-09-2007, 09:08 PM
Not forgetting your expenses of course.

(including fixed asset writedowns) :o

Sam
20-09-2007, 09:14 PM
Even if you earn below the current personal level.. i would say it is still a good idea to record everything.. just incase someone comes knocking.

only my opinion.

Solitaire Events Ltd
20-09-2007, 09:17 PM
Even if you earn below the current personal level.. i would say it is still a good idea to record everything.. just incase someone comes knocking.

only my opinion.

Legally, you still need to submit a tax return, even if you're earning hardly anything, so not just a good idea, but a legal requirement.

DAZLIN01
20-09-2007, 09:23 PM
Legally, you still need to submit a tax return, even if you're earning hardly anything, so not just a good idea, but a legal requirement.

... And to keep your records for up to seven years before 'filing' them.

Corabar Entertainment
20-09-2007, 10:26 PM
... And to keep your records for up to seven years before 'filing' them.
I'd suggest 'filing' them before that.... or it all gets horribly messy if you want to find anything :eek: ;) ;) ;)

Tom
20-09-2007, 10:26 PM
... And to keep your records for up to seven years before 'filing' them.

i was going to add that dont everybody keep records of every disco or even they have done??? i have just to be on the safe side

Solitaire Events Ltd
20-09-2007, 10:30 PM
i was going to add that dont everybody keep records of every disco or even they have done??? i have just to be on the safe side

As has been pointed out - you need to keep records for 7 years.

DMX Will
23-09-2007, 12:34 PM
Not forgetting your expenses of course.

I did say profit as apposed to turnover. So the expenses have already been taken from that amount.

Tom
23-09-2007, 05:23 PM
is there some kind of ebook or a book where i could read about this before i ever think about going self-employed??? as i dont know anything about this area

Danno13
23-09-2007, 05:28 PM
Lots of guides here - http://www.hmrc.gov.uk/selfemployed/

Tom
23-09-2007, 05:38 PM
thanks dan???

DMX Will
23-09-2007, 06:04 PM
is there some kind of ebook or a book where i could read about this before i ever think about going self-employed??? as i dont know anything about this area

Your self employed the moment you take money for a booking.

Tom
23-09-2007, 06:14 PM
really :confused:

so basically im breaking the law then as i have a full time job???

DMX Will
23-09-2007, 06:19 PM
you've got a full time job as a cleaner though havent you?

If you're paid via PAYE (normally suggested by a pay slip) then your tax on that income has already been paid.

You must declare any money you make from your business yourself, where as your employer deals with you paying tax on that part of your income. If that makes sense...

Tom
23-09-2007, 06:28 PM
you've got a full time job as a cleaner though havent you?

If you're paid via PAYE (normally suggested by a pay slip) then your tax on that income has already been paid.

You must declare any money you make from your business yourself, where as your employer deals with you paying tax on that part of your income. If that makes sense...

i understood that. i work for alfred mcalpine. i think there a limited company. i cant find my payslips to check this over.


but then again i thought you worked in a school???

DMX Will
23-09-2007, 07:01 PM
i understood that. i work for alfred mcalpine. i think there a limited company. i cant find my payslips to check this over.


but then again i thought you worked in a school???

I do. Say I earn £2000 a month with the school. They then take away either 10 or 22% based upon my tax code. (lets says its 10% for easy maths). So my pay check is actually only for £1800 because I've paid £200 TAX on the amount I earn from the school.

Say in a month, I've done 4 discos, each at £200 (again for easy maths) thats £800 income through discos. I then have to work out my costs (say £300 for CDs maybe, I broke a light this month, so needed to replace it). So that comes off the £800 and my total profit for the month is £500.

I've then got to pay TAX on the £500, not the £800. So again, it would be the same percentage as before, so I've got to pay £50 TAX (for this month).

That means possible income this month was £2800, TAX was £250, leaving me with £2250 into my pocket for the month.

You pay TAX on a yearly basis for your business though. So you need to remember to keep that £50 aside ready to pay the tax man at the end of the year.

Tom
23-09-2007, 07:05 PM
I do. Say I earn £2000 a month with the school. They then take away either 10 or 22% based upon my tax code. (lets says its 10% for easy maths). So my pay check is actually only for £1800 because I've paid £200 TAX on the amount I earn from the school.

Say in a month, I've done 4 discos, each at £200 (again for easy maths) thats £800 income through discos. I then have to work out my costs (say £300 for CDs maybe, I broke a light this month, so needed to replace it). So that comes off the £800 and my total profit for the month is £500.

I've then got to pay TAX on the £500, not the £800. So again, it would be the same percentage as before, so I've got to pay £50 TAX (for this month).

That means possible income this month was £2800, TAX was £250, leaving me with £2250 into my pocket for the month.

You pay TAX on a yearly basis for your business though. So you need to remember to keep that £50 aside ready to pay the tax man at the end of the year.

ahh. so basically you earn the money. buy or repair anything that need doing then pay tav on whats left. i take it im wrong this time aswell. :(

Danno13
23-09-2007, 07:08 PM
Sounds like you just need to get an accountant!

Give them all your invoices and receipts at the end of the year, and they'll work it out for you.. and save you more than their fee by knowing things you can claim for.

Not to mention the time its going to take you to struggle through working it all out.. Wills only mentioned the simple stuff, you also have assets and depriciation to work out!

Tom
23-09-2007, 07:14 PM
i think i have done good at the moment. i still have every receipt for everything i have got. from a few years ago when i started to buy gear.

Vectis
23-09-2007, 07:31 PM
My advice is, if you're struggling with the rulebook, put 30% of all your disco earnings in a seperate account. Keep receipts for EVERYTHING and a tab on your mileage (presume you're using a private car for business purposes) then at the end of the year hand the whole lot to an accountant.

So they may charge £2-300 for their services but that's also an expense :o

Then they'll tell you how much tax you need to pay - take it from the savings account and with any luck there'll be a few quid left over to treat yourself to a new light or something (an expense for next year!)

BUT you MUST inform your tax office that you've gone self-employed within 3 months of starting up otherwise they'll fine you ... so sort that out if you haven't already.

It also keeps things simple if you use 5 April as your year-end date.

Tom
23-09-2007, 07:34 PM
can you be self-employed and employed at the same time???

Vectis
23-09-2007, 07:39 PM
Yes.

You (or your accountant) will have to complete a tax return each year.

This has several sections. Two of which are 'employment' and 'self-employment'. Then all the other gubbins like savings & investments etc.

It is possible to have more than one 'employment' and more than one 'self-employment' and each role (for want of a better word) has its own page in the tax return.

At the end of the tax return all the completed pages get summarised into one set of totals showing how much you owe or how much the tax man owes you. It is possible, for example if you make a loss on the disco, to offset that loss against tax already paid via PAYE from your main job and end up with a refund :o

Tom
23-09-2007, 07:43 PM
Yes.

You (or your accountant) will have to complete a tax return each year.

This has several sections. Two of which are 'employment' and 'self-employment'. Then all the other gubbins like savings & investments etc.

It is possible to have more than one 'employment' and more than one 'self-employment' and each role (for want of a better word) has its own page in the tax return.

At the end of the tax return all the completed pages get summarised into one set of totals showing how much you owe or how much the tax man owes you. It is possible, for example if you make a loss on the disco, to offset that loss against tax already paid via PAYE from your main job and end up with a refund :o

ohh. ok. so should i start one in april or now. plus would i have to register my name or the disco???

Vectis
23-09-2007, 07:49 PM
Now.

#1 inform the taxman you've started a business, or risk a fine

#2 start stashing a proportion of your self-employed earnings (I do 30% and am always pleasantly surprised)

#3 keep detailed records

#4 when your first tax return arrives next April, take the whole lot to a local accountant and get them to sort it all out for you


You'll also get hit for additional National Insurance contributions (even though you already pay in your PAYE you'll get hit again) but it's not a huge amount.

Tom
23-09-2007, 07:55 PM
#4 is what i take as an income, what i earn from disco's?


also i dont want to go off topic but if i become self employed i hear that i can claim the vat back from anything i wish to buy for the company??? am i right

Vectis
23-09-2007, 08:00 PM
What I do is take the money I'm paid for a disco, let's say £100 to keep the maths simple.

£30 goes into a savings account, to be used to pay the tax bill at the end of the year. Anything left over after the tax man is paid goes in my pocket.

£70 goes in my pocket.

VAT inclusion isn't mandatory unless you're earning over (I think) £65,000 per annum from your self-employment (if you are, I want your secret). You can OPT to VAT-register (and thus reclaim VAT you pay out on purchases) but this opens you up to a whole pile of legislation - nightmare best avoided. You'd also have to CHARGE VAT on your discos, so your quote would automatically be 17.5% higher than the next guy making you seem less competitive. Avoid, IMHO.

Tom
23-09-2007, 08:04 PM
ahh. i get it. this forum has its good bits and its bad bits and this is a good bit. i know its tax and everybody hates it but i really get this. thanks for your help vectis. :D


would it be a good idea to open up a buisness account to take care of all the disco stuff???

DMX Will
23-09-2007, 08:09 PM
ahh. i get it. this forum has its good bits and its bad bits and this is a good bit. i know its tax and everybody hates it but i really get this. thanks for your help vectis. :D


would it be a good idea to open up a buisness account to take care of all the disco stuff???

Yes. I'd suggest an account from Abbey.

Tom
23-09-2007, 08:18 PM
are they any good. im with the halifax. was going to go with them??? keep it simple

Vectis
23-09-2007, 08:36 PM
I use Abbey too for business banking. They don't charge and seem to positively welcome folks who pay in lots of cheques - handy in this game :p

Tom
23-09-2007, 08:41 PM
looks like abbey it will be then. if you guys use them and have no problems then im sure it will be no problem for me. i might go and see them sometime next week with my mum (incase they go ott with there wording) and get that sorted then thats one more thing ticked off the very long list

Vectis
23-09-2007, 08:43 PM
You can do it online... you have to print out the standard application form and fill it in - nothing too complex IIRC - usual stuff. Takes about 2 weeks to set the whole thing up.

Tom
23-09-2007, 08:46 PM
ohh right. i thought you have to make an oppointment and all that. might have a look now. cheers :D

Vectis
23-09-2007, 08:48 PM
Nah! Not in this day & age. It's not like you're asking for credit - you're asking them to look after your hard-earned for you!

Once it's all set up you can run the account online, apart from posting off any cheques in the freepost envelopes they give you :beatnik:

Tom
23-09-2007, 08:51 PM
Nah! Not in this day & age. It's not like you're asking for credit - you're asking them to look after your hard-earned for you!

Once it's all set up you can run the account online, apart from posting off any cheques in the freepost envelopes they give you :beatnik:

:lol: cool

just to ask am i classed as a sole trader???

http://www.anbusiness.com/apply/business_banking/index.shtml

just scroll down on the page a bit so i know what one to download???

Vectis
23-09-2007, 09:02 PM
Guess so.

There's just you, yes? No partners? No-one else with a formal investment?

And you've not set up a limited company?

Then you're a Sole Trader.

DMX Will
23-09-2007, 09:03 PM
I rang them up and did it all on the phone. I managed to avoid putting in the minimum £50 when you open the account too. Just say you dont currently have an account with a cheque book. At the time...i didn't!

Tom
23-09-2007, 09:06 PM
Guess so.

There's just you, yes? No partners? No-one else with a formal investment?

And you've not set up a limited company?

Then you're a Sole Trader.

Just me on my larry. as usuall. :o


and for will i do have check book acount. i have 2 so it looks like ill have to pay the £50

Tom
23-09-2007, 09:09 PM
Now would i use my own name for this account or KMA Disco's on the paperwork??? plus is there anyway where i can register KMA so no one else can use it??? sorry it this is going off topic

Jiggles
23-09-2007, 09:12 PM
http://www.start.biz/home.htm Is that what your after?

Tom
23-09-2007, 09:16 PM
cheers cal. its gonna cost me £70 to register KMA Disco's :(

A1DL
23-09-2007, 11:34 PM
http://www.start.biz/home.htm Is that what your after?

read this first
http://www.ukbusinessforums.co.uk/forums/showthread.php?t=10226

Tom
23-09-2007, 11:50 PM
read this first
http://www.ukbusinessforums.co.uk/forums/showthread.php?t=10226

oooooooook. that seems a bit to much for me. i think ill give it a miss but if anything does every happen ill have to get it sorted out. i hope it dont have to come to this though. :(

PropellerHeadCase
24-09-2007, 02:48 AM
Then you're a Sole Trader.

If you play Motown, Stax and Atlantic you're a Soul Trader ;)

Vectis
24-09-2007, 10:54 PM
And if you play that recent 'Voodoo Child' mash then I guess you're a Rogue Trader? :p

Tom
24-09-2007, 10:55 PM
And if you play that recent 'Voodoo Child' mash then I guess you're a Rogue Trader? :p

:lol:

PropellerHeadCase
25-09-2007, 02:04 AM
That made laught till my throat got sore... now a hoarse trader ;)

Sam
25-09-2007, 01:30 PM
And if you play that recent 'Voodoo Child' mash then I guess you're a Rogue Trader? :p

boomboom :ner:

mutley
19-05-2008, 08:27 PM
did you know you can also claim as an expense;

some of your telephone bill
using your dinning room as an office - rent the office space to yourself
storing the equipment in your house, if it takes up the whole of your small bedroom like mine - you can rent that back to yourslf
milage

just go softly with the rental figures or you may get your records checked into further by taxman

again a good accountant will know all this

Vectis
20-05-2008, 09:38 AM
did you know you can also claim as an expense;

some of your telephone bill
using your dinning room as an office - rent the office space to yourself
storing the equipment in your house, if it takes up the whole of your small bedroom like mine - you can rent that back to yourslf
milage

just go softly with the rental figures or you may get your records checked into further by taxman

again a good accountant will know all this

You need to tread very carefully around this subject.

"Renting" yourself space is a minefield because the Rent Received is subject to tax in itself as it's regarded as income, and because it falls outwith the 'rent a room' scheme there is no tax-free threshold.

Claiming a proportion of mortgage costs / utilities for using a room entirely for your business is do-able, but then different CGT rules apply if/when you sell up and make a profit. Also, you'd need to ensure you were declaring that the property was being used as business premises and suffer the additional impact of that on your council tax (rates), insurance etc.

By far the best approach is to allocate part of a room for part of the time for business use and then none of the above apply. For example, I have a downstairs bedroom which is used as an office by me for various business purposes BUT my wife also has a desk and computer in the corner used for personal purposes. There's also a fold-down sofa which is used occasionally when we have house guests. It's therefore fair to say that overall, the room is 75% given over to my business but is also used for other reasons. Therefore as this room is one of 7 habitable rooms in the house, I claim 75% of one-seventh of the mortgage INTEREST (not the repayment aspect otherwise CGT rules get tricky) and utilities as business expenses and this is accepted by HMRC.

Mutley's last line is good advice - see an accountant!!

mr rusty
20-05-2008, 04:24 PM
Mutley's last line is good advice - see an accountant!!

This is really good advice. Many many years ago, when I first went self employed (nothing to do with discos) the local chamber of commerce had tied up with the local chartered accountants firm to offer introductory rates. If it wasn't for that I would prob have gone with a one man band. BUT, 20 years later, this chartered accountant firm is still my accountant, and over the years has saved me many ££££ for their fee, which for me has never been over £450 pa, and is often £300 ish. Benefits of using a bigger company: 1) You are not tied up with just one person, but a company with many bodies, so you get continuity 2) If the Revenue want to raise issues/queries they know they have to deal with chartered accountants, which IMHO keeps away frivolous/fishing investigations (not that I have ever been investigated- touch wood :) )

Dillmiester
23-07-2008, 01:26 AM
I too am considoring registering as a sole trader, mainly to do things the right way and so the tax man wont hunt me down.
Im not in this to make profit, just to be legal and above board.
I am sure that my business will not make a profit (sounds strange but bear with me).
Example;
I have a full time job which puts me in the 22% tax bracket, this is taken care of by my employer.
So I aim to provide say 6 events a year which would either be Discos or live band at £200 each = (£1200).
I then submit expences for transport (my car) computer equipment, sound/lights, Drums/Guitars, CD's etc to the value of £2000 (probably more).
Does than mean I will not be paying any further tax?

Solitaire Events Ltd
23-07-2008, 01:58 AM
I too am considoring registering as a sole trader, mainly to do things the right way and so the tax man wont hunt me down.
Im not in this to make profit, just to be legal and above board.
I am sure that my business will not make a profit (sounds strange but bear with me).
Example;
I have a full time job which puts me in the 22% tax bracket, this is taken care of by my employer.
So I aim to provide say 6 events a year which would either be Discos or live band at £200 each = (£1200).
I then submit expences for transport (my car) computer equipment, sound/lights, Drums/Guitars, CD's etc to the value of £2000 (probably more).
Does than mean I will not be paying any further tax?

Not being funny, but you've been a DJ for over 20 years and not registered for tax? :confused:

You are supposed to register with the IR within 3 months of starting trading I believe.

Dillmiester
23-07-2008, 02:22 AM
Yep, ive been providing discos on and off for about that long. Although its never been a full time thing or regular (sometimes years have passed). On rare occasions ive even been paid!
It is a hobby to me. I may risk being out casted for saying that, as i suppose im the very thing full time DJ’s hate.
It probably won’t make sense to many but I enjoy having a Disco set up, even though it rarely gets used and certainly doesn’t make me any profit. Friends and family think I’m mad buying the kit but I enjoy it and a lot of the sound equipment is also used in my live band so it’s not all bad.
However word of mouth has spread at work and I’m getting enquires from a lot of people to provide entertainment for them.
Even though the reality is I may only do a few (paid) a year, I think I should do it legitimately, hence the post.
I may find DJ’ing on a regular basis is too much like hard work and stop but in the meantime I just wanted to know what I should be doing if I decide to make my hobby more regular.

Vectis
23-07-2008, 07:49 AM
I'd have a serious think about changing some of the details in the previous few posts here... you never know who's trawling.

ALL income, no matter how derived, must be declared to HMRC.
Luckily costs in relation to generating said income can also be declared and offset against any tax liability which may arise.

It's not a matter of only declaring once a profit is made... the moment you accept payment for services you're a trader and from that point you have 3 months to declare yourself as such otherwise you're breaking the law.

Dillmiester
23-07-2008, 10:42 AM
Thanks Vectis, thats as I understood it too.
As i have said im here asking for advice to do the right thing so im not worried about what ive already written. If i was a cowby outfit gigging every week and not telling the tax man then fair enough but the reality is far different.

Solitaire Events Ltd
23-07-2008, 10:47 AM
Thanks Vectis, thats as I understood it too.
As i have said im here asking for advice to do the right thing so im not worried about what ive already written. If i was a cowby outfit gigging every week and not telling the tax man then fair enough but the reality is far different.

Not really, you still haven't told the tax man and it doesn't really matter whether you have been doing a gig every week or every month.

You said by your own admission that you have been DJing for over 20 years. I know you said that you only do a few paid gigs a year, but that doesn't make any difference. You should have been registered. As I said, I would seek out a decent accountant straight away. :)

Vectis
23-07-2008, 10:52 AM
Don't forget that the £2000 you've spent on expenses won't be recoverable; it only serves to reduce your tax liability.

Let's assume your £2000 is a true total of your expenses (without getting into the complex rules around assets and depreciation) and the £1200 is a true total of your income, and that none of your disco activities affects your tax banding and that your NI contributions are already accounted for in the above.

You'll be entitled to 22% tax relief on the £2000 expenses, so £440. Take that £440 off your earnings of £1200 = £760. You are liable to pay income tax on that £760, therefore approx £170.


Now then, you might want to do some reading up on assets and depreciation because in year 1 of a new business it's possible to write off 40% or even 50% of some assets (if they fall into certain categories) rather than the 25% allowable for following years which might significantly affect your expenses total.

You should also read up on the allowances available and claim for everything you can - for example, if you store equipment at home or use a spare bedroom as an office for administering the business then you'll be entitled to claim a (small) proportion of mortgage interest, council tax, utilities etc.

If you find yourself in the position whereby your actual expenses exceeds your tax liability on earnings, you can ask for these to be offset against the day-job tax calculation, usually resulting in a refund, or you can elect to carry forward the loss to be offset against next years tax bill.

This is an overly simplistic summary and I'd strongly advise anyone to seek professional advice on these matters. I'm just trying to give you a few ideas!

Dillmiester
23-07-2008, 10:55 AM
Thanks for your advice chaps.
Im now on the case.
Im going to inform the IR, set up a business account etc and see how it goes.

Dillmiester
23-07-2008, 11:00 AM
Don't forget that the £2000 you've spent on expenses won't be recoverable; it only serves to reduce your tax liability.

Let's assume your £2000 is a true total of your expenses (without getting into the complex rules around assets and depreciation) and the £1200 is a true total of your income, and that none of your disco activities affects your tax banding and that your NI contributions are already accounted for in the above.

You'll be entitled to 22% tax relief on the £2000 expenses, so £440. Take that £440 off your earnings of £1200 = £760. You are liable to pay income tax on that £760, therefore approx £170.


Now then, you might want to do some reading up on assets and depreciation because in year 1 of a new business it's possible to write off 40% or even 50% of some assets (if they fall into certain categories) rather than the 25% allowable for following years which might significantly affect your expenses total.

You should also read up on the allowances available and claim for everything you can - for example, if you store equipment at home or use a spare bedroom as an office for administering the business then you'll be entitled to claim a (small) proportion of mortgage interest, council tax, utilities etc.

If you find yourself in the position whereby your actual expenses exceeds your tax liability on earnings, you can ask for these to be offset against the day-job tax calculation, usually resulting in a refund, or you can elect to carry forward the loss to be offset against next years tax bill.

This is an overly simplistic summary and I'd strongly advise anyone to seek professional advice on these matters. I'm just trying to give you a few ideas!

So where I already have the required equipment, would it be possible to include the recipts for purchases prior to the commencement of the business. If so over what period?

Vectis
23-07-2008, 11:10 AM
Yes, but you can only bring them in at a fair market value.

Go find a similar age and condition item on eBay and print out the final sale details, use that as your FMV figure. Or get a quote from a dealer for a trade-in value or something of that ilk.

Example, £500 amp 2 years old, fair nick. Same selling for £280 on eBay
- you'd get away with putting it's initial value in at £280.

If you can't find a price, then use the initial receipt and take off a compound 25% as a depreciation value for each year since you bought it.

Remember that anything you DO bring in becomes an asset of the business and must therefore be sold if the business is wound up to form part of your last set of accounts. An acquaintance of mine thought it would be a good idea to bring the family car in as an asset as a tax avoidance exercise, and then had a nasty shock when he went back to full time employment and wound up his business about 2 years later...

501damian501
05-08-2008, 07:05 PM
try and go with banks who are ofering 12months or 18months free business banking. i know hsbc are doing 18months free. allways read the terms and conditions and the price of these bank accounts, as some can be very ex*****ve to run, cheers damian

CRAZY K
05-08-2008, 07:31 PM
Thanks for your advice chaps.
Im now on the case.
Im going to inform the IR, set up a business account etc and see how it goes.

Remember if your Disco Turnover is below £15,000 you can declare on a simplified basis.

You just declare turnover less expenses on a simple form.

Capital purchases can be taken ointo account.

CRAZY K

Dillmiester
05-08-2008, 10:16 PM
try and go with banks who are ofering 12months or 18months free business banking. i know hsbc are doing 18months free. allways read the terms and conditions and the price of these bank accounts, as some can be very ex*****ve to run, cheers damian

In the end ive gone with Allience and Leicester as they are the only bank in my village so it will be easier to pay cheques in. Also they appear to be free unless ive missed something...
The downside is that they have sent me a total of eight pass codes or pin numbers! A total of four cards! I just wanted a simple business account dammit!

djdesi
30-03-2009, 06:54 PM
Oh Yes....Don't forgett your expenses for the running of your buisness!

You get something back, which helps.

Best of luck:DJ:

Solitaire Events Ltd
30-03-2009, 07:04 PM
Oh Yes....Don't forgett your expenses for the running of your buisness!



Wow. wish I'd thought of that...:p

rob1963
30-03-2009, 08:07 PM
Claiming for business expenses is cool.

Over the last 5 years, I've claimed nearly £50 for new equipment.

Ajaysdisco
30-03-2009, 10:01 PM
In the end ive gone with Allience and Leicester as they are the only bank in my village so it will be easier to pay cheques in. Also they appear to be free unless ive missed something...
The downside is that they have sent me a total of eight pass codes or pin numbers! A total of four cards! I just wanted a simple business account dammit!

HSBC has done one better, for a simple business account, to use online banking I need; username, password and a random number from a magic key fob!