tax

moojii

moojii

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i am just about to register my business with the tax man...i really dont want to as i have only earnt about £200 so far from togging.

i need to know what details i need to keep.

i have bought a p and l book so im guessing i just need to record date of income, amount of income, costs incurred and profit. i also will need to keep copies of invoices etc.

is there anything else i need to make a record of? :help:
 
Hi, do you mean you are going VAT registered or that you are registering a company?
 
Just out of curiosity...why are you registering it so early? If you've only made £200..
 
MikeeB said:
Just out of curiosity...why are you registering it so early? If you've only made £200..
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£200 or £200,000 its all income to the inland revenue so liable for tax.

plus i have a website and i want to be all above board if ir come calling. :gag:
 
Ok, all you need for now is to register the company online (if you havent already), I would setup a business bank account as that keeps things tidy (most banks do this for free for new businesses), then keep a simple month by month spreadsheet of all income and expenditure. That should be enough to get going with. The amount you earn will need to factored into your self assessment form and you probably want an accountant to check your figures for your corporation tax (http://www.hmrc.gov.uk/ctsa/index.htm).
 
I use a single Excel spreadsheet which contains all transactions. The columns are Quarter No (you only pay VAT four times a year), Transaction Date, Transaction Type (Sales or Purchase), Transaction Number, Vat Band (somethings are zero rated as well as 17.5%), Free of VAT Amount, VAT Amount and Total Invoice Amount. At the top of the spreadsheet, I have a set of quarterly summaries which are SUMIFs from the detail and show the totals of all Sales, all Payments and nett VAT. It's worked for me for the last five years and my accountant is happy to work from it.
 
I formed a limited company as I didn't want to be a sole trader. At that time, sole traders had unlimited liability and that's not a good idea in my book.
 
Have you got a business advice centre nearby? They would be the best bet for starters and they will probably run courses for starting up.

A couple of other things come to mind-

Being VAT registered can be very beneficial especially if you're mainly dealing with other VAT-registered businesses.. Knock the VAT content off all your purchases, anybody....? But possibly not if you're dealing mainly with Jo Public, as you have to add 17.5% to all your invoices. You charge business the VAT as well, but they claim it back. The paperwork is not too onerous, and to be honest it keeps you organised financially. You can register voluntarily but its not worth it if you've only earned £200.

Registering as a *Company* is a very different kettle of fish to registering as a business. A Company is a legally defined entity and I believe you have to comply with all sorts of extra regulations. There was a loophole a few years ago that made it financially advantageous to do this but I believe it has since been closed.

Best to ask business advisors me thinks.:)
 
badgerbaiter said:
correct me if i'm wrong (as i'm really not sure), but if you arent making more than £5000 then do you need to register with the tax man?
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i think you have to register even if you have made a quid. :thinking:
 
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