- Thread starter Welderpaul
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rtbcomp
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I think £58k will be right, it was about 40 when I registered. If you are a sole trader and VAT registered you become a "VAT registered person" which means you may have to account for VAT on money you earn outside your normal field of endeavour.
If you sell services only to the public don't register, if you sell goods to large companies then register. Make you own mind up for all stops between, taking into account what Weldequip says about being able to reclaim VAT on expenses and capital equipment.
Once registered you may be able to de-register, if you do then you don't have to pay the first £2000 ?? of any VAT you owe. So you may be able to spend £1000s on equipment, get the VAT back and then a few years later de-register and keep the VAT.
If you sell services only to the public don't register, if you sell goods to large companies then register. Make you own mind up for all stops between, taking into account what Weldequip says about being able to reclaim VAT on expenses and capital equipment.
Once registered you may be able to de-register, if you do then you don't have to pay the first £2000 ?? of any VAT you owe. So you may be able to spend £1000s on equipment, get the VAT back and then a few years later de-register and keep the VAT.
rtbcomp
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You must declare ALL income from 1p upwards, you may claim costs if you wish, the taxable profit is the difference between income (turnover) less costs, depreciation and tax allowances.
£8.5k sounds like the CGT threshold.
As a self employed person you can make c£5000 profit before paying income tax, this threshold is zero for a ltd. company's corporation tax.
Hmmm... I really don't know about that one. What I do know is that this (any) goverment is as bent as the Maffia! They offered tax concessions a few years ago to companies becoming limited - if your profits were less than £10K you wouldn't pay any tax! Marvellous everybody thought, and quickly became limited. 18 months down the line they moved the goal posts!!
Would you buy a second hand car off Gordon Brown??!
weldequip
Would you buy a second hand car off Gordon Brown??!
weldequip
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So to keep things sweet i need to register as a business pretty quick once i am happy there is a business in the making. To fab/fit in the meantime isn't strictly above board right...? It does however give me an idea of the prospects before jumping in with both feet.
S'pose i could advertise my services as a fabricator, which would be fine (?) - me making things on my own premises - it would be the fitting on other peoples proprty that would have to be in a nod and a wink stylee!
S'pose i could advertise my services as a fabricator, which would be fine (?) - me making things on my own premises - it would be the fitting on other peoples proprty that would have to be in a nod and a wink stylee!
Get yourself public liability insurance for about £350 a year, get the work & worry about the Vat/Revenue later would be my advice! NOT encouraging you to avoid taxation in any way but you may find 12 months down the line that it's not working out.
weldequip
weldequip
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Just to interject a little welding-based discussion here, i bought a Murex 251 mig last week - great bit of kit, especially having spent years (and learnt on) stick welders. Just got rid of the SIP 150 mig having gone for a SIP as i have had some very reliable SIP stick welders previously. Got so annoyed with it, it sat in a corner unused for months. It got the ebay treatment a couple of weeks ago!
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Yes, i was pleased with it, as a matter of interest, what does this model go for new?
rtbcomp
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You've got to tell the taxman you have started a business within 3 months of starting.
If you are employed it is perfectly legitimate to work "on the side" (subject to your contract of employment) just tell the taxman about your casual earnings. You would have to file a self-assessment tax form. Your tax code may be adjusted to allow for your casual earnings, so make sure you don't pay the wrong tax.
You may also be liable for increased NI Contributions (aka Tax)
Another Brownism is that you may have to pay tax on self-employed earnings before you've earned the money. The man's an idiot.
If you are employed it is perfectly legitimate to work "on the side" (subject to your contract of employment) just tell the taxman about your casual earnings. You would have to file a self-assessment tax form. Your tax code may be adjusted to allow for your casual earnings, so make sure you don't pay the wrong tax.
You may also be liable for increased NI Contributions (aka Tax)
Another Brownism is that you may have to pay tax on self-employed earnings before you've earned the money. The man's an idiot.
Drains
Yeah, nah.
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He may be an idiot, but if your books don't turn out so well, he'll give you working tax credit which you can get if you're self employed. Like I say do your books right, make all the allowances you can (and you'd be surprised what you can get on there, and they will give you money!!!!
rtbcomp
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Yu used to be able to get £40 per week to become self-employed, but I think you had to be on the dole to qualify.
Is a tax credit money you receive or just an adjustment in the threshold?
Drains
Yeah, nah.
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No no no. Sorry. What I mean is you do your tax return in the normal way and pay what ever eg £0 or £20k if you're Weldequip, then tell the Inland Rev Tax Credits Agency, and they give you as much as £3000 if you are single and self employed, and much, much more if you have weans (the more the merrier)
