Self Employment Help?

[Goofyish]

My DD qualifies as a hairdresser this month and the salon where she is currently an apprentice wants her to stay on and rent-a-chair.

She will be classed as self-employed and will need to handle all her own income tax, national insurance and public liability insurance!

We haven't a clue how all this works - is there any self employment experts out there who have any information/advice - especially if you are in the same line of work?

I'm assuming DD willl need an accountant at least once a year to handle the self assesment tax thingy - how much do they charge for this service?

Thanks in advance

 

[pixiepower04]

Hi Tim,

I started my business (Wedding Cake Design) just over two years ago and I do the accounts myself, accountants are going to charge about £300 - £400 per year and as I was a new and very small business I just couldn't justify this charge.

I do my books every month to keep on top of things and fill my forms in on line.

If you go to the HMRC.gov.uk website you can download most of the information you need for starting a business but when I was going to start I phoned them up first and had a chat about starting my business and they sent me books to read and forms to fill in etc.

If your daughter is under 32? she can get lots of help from the Business Gateway people. I was too old for this help!

Also, if she's going to earn less than the current personal limit (profits after any expenses) she can get a National Insurance Contributions exemption certificate.

I have one until 2008 as my earnings were going to be really small compared to the tools I was going to have to buy.

I'm sure there are more worldy wise people on the boards that can help you better than me but I hope I have been some help

 

[natalielongstaff]

I agree with Paula, self assessment forms are fairly easy to fill in and i doubt you would need an accountant.
the local tax office (nuneaton) helped me fill in my 1st one and i do them myself now.

 

[paulh]

if you earn under £15,000 per year she wont nead an accounted as tax man alows you to file with no balance sheet ect i think.Ask the tax directly as they are not the ogars there made out or check out web site,they will help you every step of the way.I do my own accounts as bad experiance with accountants
Paulh

 

[Boss Hogg]

I became self employed and whilst as a mortgage broker, I'm not anywhere near the same industry, most principles are the same.

There is no requirement (to the best of my knowledge) for her to use an accountant, regardless of turnover levels. Having looked at my tax return I can assure you that it is very straightforward. She needs to ensure that she keeps all receipts for business expenses - purchases for everything that is related. Travel to and from her "chair" and so on. Also, she will have NI contributions to make so keep a track of them too.

There are also things like capital allowances for cars etc etc.

A very basic excel spreadsheet should suffice to keep a track of things. Naturally, there will be a VAT issue if she turns over sufficient levels (albeit off the top of my head, can't remember what the threshold is).

Naturally, all expenses can be offset against any tax she may have to pay.

Not sure how public liability would work, has the place said she needs her own, or, could she simply fall under their umbrella?

A phone call to your local Business Link may be worthwhile, as they should be able to offer some guidance on what, it any, grants are available yo her, they may even have some start-up courses.

 

[carolfoy]

one of my very close friends does the same job Tim, alternating betwen renting a chair and mobile hairdressing, practically all hairdressers do the same so she won't be short of people to ask for specific advice. Ali does her own books once a month and keeps all receipts, then turns it all over to an accountant to check it through before filing her return. she says it only costs a minimal amount for this check and it puts her mind at ease.