Tax

[Jeff]

Originally Posted by monika

and where do you find info about what you can deduct from the tax? IR people were not very helpful. is it some kind of secret knowledge reserved only for accountants?

Anything that is used wholly or partially for work.
You need to get there. Car, fuel, service costs, insurance, Sat Nav.
You need a phone (and mobile) to take bookings
You need a computer (for CPD, invoices etc) and printer and paper etc.
If you can use it for work keep the receipt and show it to your accountant.
Jeff

[admin]

Originally Posted by silnarnin

I've registered as self-employed and went on a workshop about being self-employed by the inland revenue. I was very disappointed. I can only claim 40p per mile for the car, or use the method of actual cost (that seems very difficult for me), stationary, PDA insurance, RPSGB fees, accountant fees, books and publications.

The locum that I worked with on friday told me that I should become a limited company. And he's not the first one. But I'm afraid that it might be very difficult. I really need advice here. Is it the best thing to do? I'm grateful for everyone's opinion.

Thank you very much in advance.

I admit I do everything through my accountant, but he set me up as a Ltd company, tells me what to claim for etc. He even sent me a spread sheet to record the relevant things and keep myself up to date.

I used to do it all myself, but although paying an accountant costs money, I have found it saves you money in the long run.

To set up a company you need to register with Companies House, submit a set of your accounts yearly to them - all done by him.

Then there the different types of tax (PAYE, corporate tax) and NI contributions etc. All in all, I'd recommend a good accountant as it makes life so much easier.

I personally use a guy who is also a qualified lawyer, and that comes in very handy sometimes, as he will usually give me a bit of free advice if I need it. I found him as he specialises in pharmacists, and does the accounts for the locum agency I also use.

[3PJ]

Hi,

I've recently started locuming and am also confused about whether I should register as a limited company rather than self-employed which I am now. I'm unsure about VAT registration. I gather being VAT registered means I have to charge VAT on my services (as well as being able to claim it back on work related materials). So would I have to increase my hourly rate by 17.5% and are pharmacies okay with that? I know they can claim it back but is that the way it works or have I got it wrong?

Also I get paid cash in hand at ASDA pharmacies. I keep all receipts however I have used some of the money before I have paid it into my account. So less is going in on the statement than I have earned but I thought the receipts would be acceptable proof of what I have earned and so it's all okay. Or do you think that's bad.

Any helpful advice would be appreciated.

Thank you

[johnep]

Tax on earnings roughly 22%, tax on dividends is 19% so worthwhile becoming ltd co if work full time. Re cash from sainsburys etc. they will be reporting that they have paid yo so pau in equibalent amount to your business acct. I suggest Nationwide as get paid interest while major banks will charge you.
johnep