self employed...help please??

Question

i am currently training to become an electrician ,i am legally allowed to carry out certain work now i am competent in these areas .i wish to become self employed ,i will get a van on lease,i will still have to pay for my courses also ,can i get tax relief on these things???? whilst starting off in business ,would the tax man understand i am not yet fully qualified and the money will not be a lot ,for the first few years ??? totally stuck please help

Answer 1

Rule 1. Tell the taxman within 30 days. This also covers NIC and VAT, if applicable. See the link below.

Rule 2. Engage an accountant (Chartered or Certified) early. Ask several for quotes. Speak with them and find out how you can keep your records so that it makes it easy for them at the end of the year. A good accountant will be able to devise something you can do easily - maybe a computer program, as you are obviously able to use one. That makes things really easy for the accountant at the end of the year. Thus, it makes it cheaper for you.

An accountant who does not want to help you design a good system is not really interested in helping you grow your business.

Your accountant can answer specific questions but here goes with the general stuff:
You will generally get relief for the lease payments on the van. The courses are not a business expense as they are giving you the skill to be able to do a new job. However, once you are fully time-served any education costs which update your knowledge are deductible. I have been away from the UK for five years so I had to check to see if they had enacted any legislation to give tax relief on education costs that are not business expenses. It appears not.

The taxman will believe what you put on your return unless he has reason to believe otherwise. Having a reputable accountant and tidy records is always going to help you in your dealings with the taxman.

Good luck in your venture.

Answer 2

Simple as this mate, tax is relevant to what you earn, so if you dont earn much you will pay less tax. And yes, all expenses, van, fuel, tools, etc etc are tax deductable. Keep a receipt for every business expense you have, and every time yo invoice someone, keep a copy for yourself. Then you'll have a list of outgoings and income, simply take the outgoings off of your income, and whatever is left get taxed (well everything after your tax allowance is used up, probaby about 5000 pound or there abouts).

Answer 3

ok i have a masonry business. that said the tax man doesn't care about how much you have, he just wants his cut. PLEASE, set up your tax payments before you go out on your own. you'll have to get an EIN number and you'll have to file a form for that. i would talk to an accountant for some help setting it up. but please do it before you start. i didn't do that and got stuck paying out the wazoo for back taxes and then they added penalties and interest. it was horrible. some times i ended up paying double.
you should get a tax break on your van, and other expenses like gas OR miles put towards your travels for work, your tools and equipment, and so on. but keep your receipts for everything. you might want to get a cell phone for BUSINESS only, that will count as equipment.

Answer 4

yes we have a business, and use an accountant, and you get tax breaks for the 1st 5 years.

Answer 5

Do you want to know one of the factors normal Law of attractionproduct doesn't work for numerous individuals?Think it like a diet plan. If you wish to slim down and you strive to lose it

Answer 6

Yes you will get a break. I file thru Turbotax and it's very easy because it guides you thru the whole thing. Good luck!