Self employed

[RobRainford]

currently, i do work for myself, and all the insurances come from my dads side, meaning i have public liability up to my teeth pretty much.

 

However, i am thinking of declaring self employed and wondering what i would need to do, ive looked online and i need to do my tax returns and id have to add VAT to jobs i do and have all sorts of paperwork, plus generic risk assessments, although there is one available anyway, it would enable me to invoice people.

 

But with my dad having a business, i can use that and although i operate under robert rainford tree care services i could invoice people as rainford contract services which is his company, and then money paid to them i will get paid to myself as wages, which then would need tax depending on the amount.

 

Its a real headscratcher, as when i dicuss it with my dad he says i can put things through the business and can invoice people through his business.

 

There is a wealth of information available i know, but i need mroe real life interpretations of this information in order to help myself make the choice, i was planning to do it next year after i finish my foundation degree, and go to st helens chamber for business advice, where i may be eligible for grants if im lucky.

[ad15]

rob, i'd include your teeth if i were you on the insurance,, knocked my top six out,, cost my old boss over £10k.. and that was in 1999!!!

 

re tax etc,, you only charge vat if you are vat registered , and it's not worth oing that until you are turning over 50k +... that is what i've been told,,,

 

swmbo is vat registered and we can put nice ticket items through her books if we want to save the vat, obviously it has to be something she can justify on her business..

[Frank]

The vat threshold is £67k is it not?

You don't just start charging vat because your self employed.

[RobRainford]

Oh yeah. I should know about that. I wish I was earning over the vat threshold!

 

I'd read up on it and stuff previously and had read what you said Frank on another website.

 

So all I have to do is sign some paperwork really. But wouldn't I then have to sort out another insurance policy? Including employers liability?

[Frankie Lawrence]

yo dont need to pay vat unless you earn oover 75 grand? so dont worry about that just register self emplyoed and whatever work with firms you get tthen you an invoice them etc etc

 

good lluck

[samarb]

It's not earning it's turnover for VAT, you can reg if you want any time but only really pays when your only doing firewood. Just get a good accountant and your there.

[Paul Jenks]

Best bet is to have a chat with an accountant. They usually don't charge for the first visit as they want your business. Ask some questions to get a bit of clarification on the subjects discussed above but don't sign up with him/her. Generally the first round of answers you get will lead to a whole raft of other questions. These you put to another accountant, and so on.

Once you have a good idea of the pros and cons based on professional advice you are more prepared to make a decision.

Be aware though, just like tree surgeons accountants come in good and bad varieties.

[RobRainford]

Thanks for the tips. There is a business startup place run by the council and I was planning to go there for the advice I need.

 

My mum has done the books for my dad for years so she will be able to help me too. I just need to record of money in and money out.

 

I will try and get some firewood going too. We have a good stack of wood that needs to go so that will be a good place to start!

[grumpydavesmith]

Hi mate.

 

Go on the business link website it tells you everything you need to know. If you still got questions about tax etc, then ring Inland Revenue for advice, i do all the time and they can be very helpful bunch.

 

Good luck

 

Dave

[Kev Stephenson]

You could operates 'Robs tree choppers' as part of the Rainford contracting services group of companies. However if your dad is VAT registered you could be operating at a disadvantage to some other local tree co's (for domestic work) as you would have to charge VAT on all your work. If you set up as an independant company and operate under the VAT threshold then you will not charge VAT. You cannot however claim VAT back on your tools, fuel, etc if you are not vat registered.