For those that are self-employed it’s that time of year again, when your tax forms need to be filed and any tax due should be paid.
But how many of you are actually self-employed?
Should you be?
I know many people who make money from their hobbies and yet think they are exempt from paying tax.
If you provide goods or services then you are a business, no matter how little profit you make.
Remember even charity’s register for tax purposes.
so if you..
– Loved baking, made cakes for friends and family but now take orders for birthdays
– Knitted baby clothes for friends and family but now sell them
– Sell at car boot sales
– Sell on Ebay
– Cleaning windows
– Cutting grass
– Teach a skill or hobby
– If you have a trade and do little jobs and “homers”
As a business you need to register with HMRC and comply with all mandatory legislation.
This means that as well as being liable for tax, you need to comply with Health and Safety, Fire Safety and First Aid as a minimum.
Your business sector may also have qualifications or licenses attached to the services or products you are supplying. If so it may be a criminal offence to trade without them.
You may need specific business insurance.
Your buildings and home/contents insurance might not cover you.
If you have people helping you, then you’ll need employer’s liability insurance as volunteers have the same rights as paid staff.
Tutors and teachers will need indemnity insurance and public liability.
It can even affect your car insurance.
This might all seem a bit much, especially if you aren’t making much money but it is the law and once you put the right paperwork in place it’s not that bad..
If you want some free advice on starting a business, registering with HMRC or info on any of the above, drop me an email to email@example.com
speak to you all again soon