Self-employed costs

[Midge]

Needing some wisdom from the self-employed crew!!

 

I am looking at registering as a sole trader this year and trying to work out what id need to pay out for each month. I am currently in full-time employment but do my own garden maintenance jobs aswell. I have worked out that I would not earn more then 7,200 a year registered as a sole trader (with employed wages approx. 32,700 per year) Working out tax and NIC is a nightmare so at the moment I am just trying to get a list of things I would need to pay to go legit!

 

List.......

 

Public Liability

Tax

National Insurance

Last years tax

Half of this years estimated tax

More tax on 31st July

Waste carriers licence

 

Sure there are more but this is all I can think of! Any and all help is really needed as I am wondering weather it is even worth doing with the small amount ill be earning per month/year. I hope too one day be able to go full time self employed but this first step looks very daunting!

 

Thanks for reading another new boy business post!!!!

 

Edited January 2, 2020 by Midge

[Midge]

I have also read as much as I can on t'old interweb but its all big business words that I dont understand ? Crunch was a very well written website though.

Edited January 2, 2020 by Midge

[htb]

Well if your profit is only going to be £7200 after costs you wont be paying any tax as can earn £11850 at 0% tax. Minimal NI class 2 @£2.95/wk and no class 4 as profit less than approx. £8,600.

 

[Dan Maynard]

For your own arisings, waste carrier license is free too.

The public liability will be something like £300, ring around and find out. Everything else tax wise doesn't cost you unless you make money so I wouldn't worry about that side, if you want to be self employed then go for it and worry about the money later.

[Midge]

15 minutes ago, htb said:

Well if your profit is only going to be £7200 after costs you wont be paying any tax as can earn £11850 at 0% tax. Minimal NI class 2 @£2.95/wk and no class 4 as profit less than approx. £8,600.

 

Does that still work with my self-employment wage added onto to my full-time employed earnings though?

 

I was under the impression I would have to pay tax on the self-employed earnings to as both my wages combined are over the £12,500 threshold?

[jfc]

If self employed you earn £7.2k, plus £32k employed you will pay tax and ni on 7.2k, as you will have used up your tax free entitlement in your wages. Tax is 20% and ni about 9%, so basically you will lose 30% of your earnings straight off.
Other costs, tip fees if paying to dispose of arisings, approx £45 per tonne.
Fuel/oil.
Vehicle costs.
Tools and repairs.
Advertising.
Phone.

All the best with it.

J.

[htb]

Apologies had not noticed the employed wages bit when I 1st read your post, did you add it later.

[jfc]

For your own arisings, waste carrier license is free too.

The public liability will be something like £300, ring around and find out. Everything else tax wise doesn't cost you unless you make money so I wouldn't worry about that side, if you want to be self employed then go for it and worry about the money later.

Here in Scotland you need a waste carrier license to transport arisings to a tip site, cost £215 for 3yrs. Not sure about England.

[Mark J]

You'll pay a bit less than a quid a day, as a sole trader, for an accountant.

[Dan Maynard]

Ah sorry, didn't even think about that - seems to be different in Wales too. In England you can be lower tier or upper tier depending on the waste you handle, carrying your own garden/arb arisings puts you in lower tier which is free registration.

Register or renew as a waste carrier, broker or dealer (England) - GOV.UK

WWW.GOV.UK

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Register or renew registration with the Environment Agency to transport, buy, sell or broker waste.