Self-employment tips – part one

One of the main benefits of becoming self-employed is the ease with which you can start up and run your new business.

In part one of our special feature, we take a look at some of the important things that you may wish to consider before taking the plunge.

You can even become a sole trader (another term for self-employed) whilst working as an employee for someone else, so you can test the water and see if you’re suited to working for yourself.

Here are first top tips for when you decide to go self-employed:

How to register as self-employed with HMRC

Once you set up as a sole trader (or work as a partner in a partnership if there’s more than one of you), you will be responsible for paying your own income tax and National Insurance (NICs).

You must register as self-employed with HMRC within three months of starting trading, even if you already pay tax via the self-assessment process each year. You can register online or call HMRC on 0845 915 4515 if you’d prefer to speak to someone.

If you are unsure whether or not you need to register with HMRC, here is some help to establish whether you are employed or self-employed.

Once you start operating as self-employed, you will need to pay your own National Insurance contributions (NICs).

Do you need to register for VAT?

As of April 2015, if your business has an annual turnover of £82,000 or more, you must register for VAT.

At any stage of the business cycle, if you look like you’re going to hit this annual VAT threshold over the coming 12 months, you must also register. The threshold usually rises by a few thousand each year. Make sure you let HMRC know within 30 days, or risk paying a fine.

In many cases, you might decide to register for VAT even if you don’t need to. You may gain more credibility by having a VAT number, and you’ll be able to claim the VAT back on eligible purchases you make.

You might also consider the flat rate VAT scheme, which makes accounting for VAT much simpler. Your accountant will be able to advise you if you’d be better off on the Flat Rate or standard VAT scheme.

Need advice?

If you need advice about becoming self-employed, we are here to help – request a free of charge call back from our website or click here and we will contact you to discuss your situation.

Payroll price challenge

Take the Omni Accountancy payroll price challenge

Do you outsource your payroll? What are you paying? What service are you receiving? And is it fit for purpose?

Do you do it yourself but your time could be better utilised to the benefit of your business. At Omni we offer many services and payroll is just one.

We are competitive, flexible and we can save you money. Why not take the Omni Accountancy Price Challenge today to see just how much…

At Omni you will get a very personal and bespoke offering – quality at an affordable price.

Referrals

Do you know anyone who needs payroll, tax or accountancy help right now? Refer us and make sure they mention your name too.

For more information about Omni Chartered Accountants, call 01902 837 408, or request a free of charge call back from our website – www.taxandaccuntancysolutions.co.uk.

We are always happy to help.

Payroll solutions

No matter who handles the payroll for your business, it’s never going to be a walk in the park.

Payroll can be complicated, expensive and it needs to be well managed. So how do you decide whether it’s best to outsource your payroll or do it in-house?

Payroll challenges for small business

Small businesses can be overwhelmed by the responsibilities that come with payroll. Tax requirements need to be considered and the fines for failing to meet them are usually hefty.

Another common issue for businesses is scale. With revenue growth often comes an increase in staff what is the best use of your time?

Doing the payroll can be frustrating for many small business owners because it can take lots of work to complete and has so many moving parts. There are also many ways to make errors, and tax requirements can be a minefield. Confidentiality is vital – data needs to be kept safe and secure.

It’s a fact that preparing payroll is one of the more complex aspects of small business accounting.

Payroll solutions

However, technology advances mean that payroll software has come a long way in the last few years. There are many choices available that may well fulfil your needs, but what outsourcing it to a third party? How much does it cost?

As with any service, prices vary dramatically so resource several options. Check out our costs and talk to us if we can help with your payroll – our services are professional and cost-effective – why not take the Omni Accountancy Price Challenge today!

To Dom or non-Dom? That is the question

Labour has announced that it will remove the existing tax benefits in April 2016 if it gets into power. This follows the recent Budget announcement where a £90,000 charge was introduced for non doms (a person who lives in a country but is not legally domiciled in it, in other words) who have lived in the UK for 17 out of the last 20 years.

Whichever party forms the next government, it appears that non doms are clearly in the sights of the major political parties and the long standing tax benefits future looks bleak. Most non doms should now consider the likelihood of the tax benefits they receive continuing in the long term as remote.

To dom or not to dom? That is the question

It is estimated that its abolition would affect 116,000 people but there are no certain sources as to how much tax would be generated. What is certain, however, is that it would make the UK less attractive to those who have the resources to choose where they live and work.

Obvious casualties would be the high end London property market and businesses like hedge funds that can easily relocate to more tax friendly jurisdictions.

Like many tax strategies, the long term effects may take years to materialise; new businesses may simply not chose to come to the UK.

Weighted against this is the prevailing view that everyone should pay their fair share of tax. Historically, non dom status is an aberration in the tax system and its original reason for existing has long disappeared.

So what are your thoughts about it all? Do let us know and join in the conversation @OmnitasTax and Facebook – we are also here to help with any tax advice that you may need so please do feel free to call us on 01902 837 408 or click here.