self employed/sub contractor... any advice r.e tax etc

[G1BB0]

so as of 14/4 I am classed as self employed and also aa a sub contractor to Kelly communications. What do I need to do with regards tax (expenses etc)

I have had differing info and the HMRC is a bit thin on info imho.

Basically I have a company doing my billing to Kelly and deducting tax @ 20% for which I get a statement monthly and annually. This is not an umbrella company. I know I can claim their costs as expenses, also travel. Can I claim for car insurance as I am adding business, mobile phone as again it will be used for work purposes. Anything else I can offset as expenses? I was thinking of buying a laptop and as this will be used for business aswell as personal can this also be claimed. Its a bit of a minefield lol.

Been PAYE for 26 years so a little bit clueless.

 

[NorfolkShaun]

so as of 14/4 I am classed as self employed and also aa a sub contractor to Kelly communications. What do I need to do with regards tax (expenses etc)

I have had differing info and the HMRC is a bit thin on info imho.

Basically I have a company doing my billing to Kelly and deducting tax @ 20% for which I get a statement monthly and annually. This is not an umbrella company. I know I can claim their costs as expenses, also travel. Can I claim for car insurance as I am adding business, mobile phone as again it will be used for work purposes. Anything else I can offset as expenses? I was thinking of buying a laptop and as this will be used for business aswell as personal can this also be claimed. Its a bit of a minefield lol.

Been PAYE for 26 years so a little bit clueless.

I have not been self employed for a long time, I used to use a local accountant to do all my tax returns etc. I do believe you can claim for most things.

If you know anyone who can recommend an account I would go this way. I have had three now two from recommendations and one from the yellow pages. The recommended ones were recommended for a reason.

 

[Deleted member 1740]

so as of 14/4 I am classed as self employed and also aa a sub contractor to Kelly communications. What do I need to do with regards tax (expenses etc)

I have had differing info and the HMRC is a bit thin on info imho.

Basically I have a company doing my billing to Kelly and deducting tax @ 20% for which I get a statement monthly and annually. This is not an umbrella company. I know I can claim their costs as expenses, also travel. Can I claim for car insurance as I am adding business, mobile phone as again it will be used for work purposes. Anything else I can offset as expenses? I was thinking of buying a laptop and as this will be used for business aswell as personal can this also be claimed. Its a bit of a minefield lol.

Been PAYE for 26 years so a little bit clueless.

Will you be using a car or buying a van? If you buy a van you claim the full cost of your van upto £1k anything above that its 45% 1st yr and so on but the percentages decrease. If you're using a car you'll only be able to claim mileage at about 45p per mile ( i think).

If you're buying a van and you purchase through finance or loan you can claim the interest back on a yearly basis.

Anything you buy for your business use, van tax&ins,public liability,phone bill,ppe,tools and diesel make sure you keep all receipts and make sure you use an established accountant. Any fees you pay for accountant can also be claimed/offset.

The HMRC won't tell you exactly what you can and can't claim for so make sure you use an accountant.

 

[Doon frae Troon]

Sound advice from Shaun. A good small local accountant is required, don't worry about the cost as they will save you that many times over.
You have to watch your car claims as the revenue tend to pick up on that.
ie you can't claim home to work travel.

Vital that you..........KEEP ALL RECIEPTS.

 

[Green Bay Hacker]

For clarification, are you self employed or a limited company?

You mention that you have a company but do you mean a sole trader business?

 

[Green Bay Hacker]

For clarification, are you self employed or a limited company?

You mention that you have a company but do you mean a sole trader business?

Just reread the OP and now see it as you being paid by an agency.

Are you classed as a subcontractor in the construction industry?

 

[Deleted member 1740]

Just reread the OP and now see it as you being paid by an agency.

Are you classed as a subcontractor in the construction industry?

He will be classed as labour only subcontractor where the contractor pays him through a 3rd party (CIS)

 

[G1BB0]

yeah basically we are paid through a 3rd party and classed as a sub contractor in telecoms not tied to one company.

 

[Green Bay Hacker]

He will be classed as labour only subcontractor where the contractor pays him through a 3rd party (CIS)

yeah basically we are paid through a 3rd party and classed as a sub contractor in telecoms not tied to one company.

Not sure that CIS is meant to include telecoms industry.

Has G1BB0 registered with HMRC within the CIS scheme as well as registering as self employed? If not then 30% tax should be deducted.

 

[G1BB0]

yes registered as self employed been informed its 20% plus £2.75 a week NI (basic stamp). The HMRC will deduct any extra NI from any potential rebate once my SA is completed in 2015.

Got an interview for BSkyB on Thursday for a paye job lol, might be bloody easier

 

[Foxholer]

G1bbo.

There's a repeating pattern here!

Go See An Accountant!

Worth getting a recommendation from some of your fellow subbies.

I'm still amazed that BT deducts the 20% - and charges a fee for doing so - though that may be something that has come in since I was in a similar position. Or perhaps it's the CIS which didn't apply to me - in IT.

Here's a guide, though it's a couple of years old so may not be accurate - your accountant will be able to confirm, or even supply his/her own. http://www.taxback.com/packs/uk/GuideSE.pdf

 

[G1BB0]

I am not with BT Foxy, I am working for a contractor for Openreach but still classed as self employed and sub contracting to them.

cheers for the link

 

[Green Bay Hacker]

Will you be using a car or buying a van? If you buy a van you claim the full cost of your van upto £1k anything above that its 45% 1st yr and so on but the percentages decrease. If you're using a car you'll only be able to claim mileage at about 45p per mile ( i think).

If you're buying a van and you purchase through finance or loan you can claim the interest back on a yearly basis.

Anything you buy for your business use, van tax&ins,public liability,phone bill,ppe,tools and diesel make sure you keep all receipts and make sure you use an established accountant. Any fees you pay for accountant can also be claimed/offset.

The HMRC won't tell you exactly what you can and can't claim for so make sure you use an accountant.

Since Annual Investment Allowance (AIA) was introduced you can claim 100% of the cost of a van (subject to any private use adjustment). With a car you can claim actual expenses, again restricted for private use element or business mileage rate of 45p per mile for first 10,000 miles then 25p per mile.

However, if your turnover is high enough to be VAT registered you will have to use the actual method for car expenses. Capital Allowances on the cost of the car can be claimed at either 18% or 8% depending on the CO2 emissions. These will again be restricted for private usage.

If your home is your registered business address you will be able to claim travel from home to work, provided you are not travelling to a permanent workplace. If you had to go from home to the agency office each morning this journey would not be allowable.

 

[MadAdey]

I did some courses a couple of years ago for small business start up. One thing we got told was get a good accountant, what ever they cost they will save you that 3 times over. Also a lot of mates are doing the same thing but in the aircraft industry and they have all set them self up as a limited company as the tax breaks are far more beneficial. Take a look into it....

 

[G1BB0]

all good to know, thanks for all the advice, I just thought it best to know asap as at least then I am doing it right from the off.

 

[Green Bay Hacker]

yes registered as self employed been informed its 20% plus £2.75 a week NI (basic stamp). The HMRC will deduct any extra NI from any potential rebate once my SA is completed in 2015.

Got an interview for BSkyB on Thursday for a paye job lol, might be bloody easier

I am not with BT Foxy, I am working for a contractor for Openreach but still classed as self employed and sub contracting to them.

cheers for the link

The £2.75 will be your Class 2 NIC. You will pay Class 4 NIC based on your agreed taxable profits.

Still can't see how your work comes within the scope of CIS.

 

[Foxholer]

I am not with BT Foxy, I am working for a contractor for Openreach but still classed as self employed and sub contracting to them.

cheers for the link

I bundle Openreach into 'BT'. It is, after all 'BT Openreach'. Though it will be the Contractor that deducts the Paye/NI (under CIS).

CIS would explain the 20% and I guess enough of the actual work is for 'construction' for it to be included. That's the sort of thing an accountant would determine during the assessment.

 

[Imurg]

One thing we got told was get a good accountant, what ever they cost they will save you that 3 times over. .

Or have a retired Tax Inspector as a Father - damn handy that!

 

[richy]

I bundle Openreach into 'BT'. It is, after all 'BT Openreach'.

It isn't. It's 'Openreach'. Which is the infrastructure division of the 'BT Group'. Totally different

 

[Deleted member 15344]

Kelly Comms have a good rep - done some good work for us around the airports

Is the job with Sky internet also ?