Hi Guys n Girls, The time has come where I've been lucky enough to be offered a partnership with 2 of my eBros on a website. I will be in charge of advertising, running all the ad spots, and I'm getting a cut of site revenue, this will be a cut substantial enough to form my salary. I've been told by the main guy the best thing to do is set up my own consultant business, and invoice him for my funds bi-weekly or monthly. Here's where I get stuck. I'm currently a full time student, and will be until May. I know how to register my own business, but since it will be solely me, no employees, what kind of company do i register? The next daunting thing is taxes. I thought I would ask here first before ringing the tax man, my money will actually be coming from Canada, and I plan to open a basic business bank account, with a paired business Paypal account. I take it I will have to do my own tax forms? Which means what? Am I right in saying I need receipts/invoices/bills etc to be stored for when I fill in my tax form? Is it all that simple or way more complicated? Thanks guys, any advice or information will be greatly appreciated. Ashley.
sorry no ones answered but i think your best shot for an answer is go to an accountant forum. Actually i know a friend that does accounting, maybe he can set it up for you for a small fee ? When it comes to taxes don't muck about cause they will catch you out which is why i'd advise you get professional advice than from any forum. Let me know if want to advice from my mate. he could do this for you. hes uk based aswell.
Hi Ashley, as a starting point I would recommend visiting and reading the various articles on the HM Revenues and Customs Website, the self employed section is here This page also has some great advice and pointers which helped me. You need to work out your own Nation Insurance Contributions, Income Taxes (If applicable) and keep track of your VAT records (both inputs and outputs). If you need any more advice, please don't hesitate to get in touch Hope this helps Regards Goldie
Hi I have participated in 2 threads and offered advice (based on personal experience) that should help: http://forums.digitalpoint.com/showthread.php?t=1155190 http://forums.digitalpoint.com/showthread.php?t=1083349 I hope that helps ya cheers K
Once you have a letterhead you are a company. You do not need to register for VAT until you turn over 50,000 quid or more. Invoicing can be done easily. Use an accountant to sort out your finances for tax purposes.
no.. your a company when you register with companies house. I use a company to register my businesses and it costs around £80 and you need to get yearly account and submit them within 8 months of your year end. To be honest you would be better to go as self employed and ensure that all your accounts are written down and receipts taken. Open a new bank account that is soley for your self employed takings and put everything through that account. get an accountant at the end of the financial year (april) to collate all your accounts and then talk to the HM customs about putting the taking through your tax. When you have enough money coming in then think about starting up a limited company or going with an umbrella company.. No point starting a new company in case things go bad and you do not make the money that you hope for.
Your friend is saying to form a company and invoice him for the work. There's no need for that. In fact, HMRC do not like people setting up one man Ltd companies. You don't actually need to do that. Your friend can simply pay you for work done. Not as an employee because that would mean he would have to pay NIC, PAYE and more admin crap. He can simply pay you for work done, you being on a freelance basis. In terms of your obligations, you need to register as self-employed. Simply call HMRC and tell them. You will also need to pay Class 2 NICs, these are less than the Class 1 NICs taken automatically in your pay packet when working for another company so don't worry. You will also have to file a self assessment tax return every year. Small pain in the arse but not really a huge deal. As you are getting enough to live on, you may want to use an accountant who will charge 2/300 quid a year. Personally, I do all the above myself as I am not yet earning enough. If your mate insists on invoicing then you could go via an umbrella company. Parasol is a very popular one. They will invoice your mate and they will pay you less tax and NICs. Come to think of it, thats probably the easiest thing if you have no other online income. Not sure if they will invoice overseas though.