Recommended
Recommended
More Related Content
Similar to Tax and setting up as a Mumpreneur
Similar to Tax and setting up as a Mumpreneur (20)
Recently uploaded
Recently uploaded (20)
Tax and setting up as a Mumpreneur
- 1. Mumpreneurs – Tax and Finance Buss Murton solicitors 15 September 2010
- 2. Alastair Wood FCCA Qualifications Set up Mar 09 Work from home School run Wife’s businesses However not Mum!
- 3. Idea to Business Starbucks business Hobby Make money Profit incentive
- 4. Thought to plan Business Plan What How SWOT Finance Marketing Long term
- 5. Cashflow – does it stack up Income less expenditure Monthly All expenses Monthly Annual One-off Example cashflow
- 6. Break-even Gross profit Overhead Contain overheads Danger zone
- 7. What sort of company Sole trader Simple for smaller businesses Partnership Split profits between partners, flexible Limited company More complicated, expensive but tax efficient My blog: http://awaccs.co.uk/uncategorized/how-should-i-set-up-sole-trader-or-company
- 8. Sole trader and partnership You and business are the same Responsible for debts Self assessment return Tax/NI based on profits Tax 31 January Payment on account + Balancing payment
- 9. Self employment and tax National Insurance Class 2 £2.30pw (limit £5075) Class 4: 8% profits over £5715 then 1% over £43,875 Tax £6475 tax free Next £37,400 @ 20% Then 40%
- 10. Limited company You and company are different Registration Company responsible for debts Corporation tax return Tax payable - 9 months Filing accounts Annual Return
- 11. Limited company and tax All small co profits taxed @ 21% Profit > £300k then 28% Associated companies Basic salary £475pm, tax & NI efficient Dividends deemed basic rate tax paid Higher rate tax 1/3 of divis > £37k
- 12. Registering your company Simple Pays to take advice Forms to Revenue Payroll for company Also web address Trademark
- 13. Record keeping Record of all income and expenditure Electronic sales invoices acceptable Purchase originals Manual book Spreadsheet Computer TAS/Quickbooks Sage
- 14. Growing Business Employees Register Payroll and tax Contracts Raising finance Business plan Cashflow
- 15. Summary See if it is viable Find out your breakeven sales More turnover -> more profits Decide on company type Register company Go for it!
- 16. Any questions, please ask? Contact details Email: alastair@AWaccs.co.uk Phone: 01474 833169 Mobile: 07590 849826 Twitter: @alastairwood Website: www.AWaccs.co.uk
Editor's Notes
- Good morningWelcomeHope you enjoyed
- Qualified accountantWorked for other people all my working lifeSpent some time in industryHad/given opportunitySpend more in than outKids 10+12 + school runDining tableHOWEVERNot a mum
- Jenny and SueJust a hobby - a bit of fun to earn a few pennies + cover costsFriendsPremisesWork life balanceHobby to job – sports therapist – pushing the boundaries
- What you are going to do – ABOUT the businessObjectives – Personal + businessHow you are going to do it/legal structure/whereSWOT – lay out Jenny and SueFinance – look at later – SueProducts and suppliersMarketing – how are you going to amke it happen – Jenny’s Management and marketingLong term plan – doing it together/selling – same aspirations
- What are we trying to achieve – to see if income exceeds expenditureIf we do this on a rolling monthly basis we can see where peaks and troughs areMonthly exps – mobile, Annual – subscriptions, memberships, software, licencesOne-off – Equipment, softwareHome as officeInsurance
- Gross profit – direct costs assoc with partiesFoodPrizesBouncy castle hireParty bagsOverheads – insurance/publicity
- No differentiation between business and yourselfYou gain when business is goodYou are responsible for debts if business goes underYou need to complete a self assessment return for each tax year to 5 AprilSlightly more involved if choose year end not 5 AprilPay weekly NI “stamp” £2.40pwExemption if <£5075Pay tax+NI 10 months from the end of the tax year on 31 JanPersonal allowance £6475 the 20%HR tax from £37400NI allowance £5715 then 8%If tax more than £1000 then must make POA Jan and July
- Need to pay NI to qualify for state benefitsHowever if earnings < £5075 do no need to payRates shown, but broadly if earnings >£6k then pay tax + NI at a rate of 28%Various rules if income > £100k but only applies in limited cases
- Different legal entityRegn at co HseCompany responsible for own debts and taxesShares = ownershipCorp tax payable on profits 21%/28% >300kWarning re associated coAnnual accounts – choose year end (best for you)File accs co hseAnnualRtn - £15/£30
- Relatively simple processIt does pay to take advice, get it right at beginningIf looking at growth – better as LtdFill in forms – lots of info – contact+tax refsCo then directors must be paid so need payrollPay basic – covers NI + S2PBal by divi – no tax until HR taxDo not forget web + trademarkVAT Regn £68kCash accg £1.35m
- Must keep business records – 6 years ? Rules changedElectronic acceptableMust be able to accessGenerally keep purchase originals – easier than elec filingKeep in various formatsManual – only if you add up!Spreadsheet – easy for mostComputer – relatively cheap – does all reportingAcct should be able to help with making work for you
- Staff – has another job/pension – LEL £95pwPart time irrelevant unless under £95pwNI if over £110pw11% Ees12.8% Ers+.5% this year and nextTax if over £125pw