Started a side hustle?
We provide tax advice to content creators and small businesses such as (for example):
Online fitness trainers
We will make sure you’re paying no more tax than you need to, reducing your tax bill while being tax compliant.
If you are in this exciting sector don’t forget about the tax implications, such as:
Income tax and NIC – any income, money or profit you make from making content is subject to income tax
VAT - If registered, you will charge VAT and pay this over to HMRC
Should you need any support or have questions, just drop us a message AND have a look at our FAQ
Frequently asked questions
What is self-employment?
A self-employed person goes by many names, such as ’running their own business’ or a ‘sole trader’.
If you are self-employed, you will have no entitlement to any employment rights, which include rights such as paid holidays and sick leave; and you will have to take full responsibility for your tax affairs. It is not all negative, as there are many benefits to being self-employed too, such as claiming expenses to reduce your tax bill, work flexibility, no ceiling on your earning potential to name a handful!
How much tax will I need to pay?
The typical accountant answer… it depends. The amount of tax you will pay, will depend on the profit your business makes, any other income you receive and your personal circumstances.
Income tax rates as of April 2020 in England are 20%, 40% or 45%.
What are your tax and NIC responsibilities if you are self-employed?
If you are self-employed, you will be responsible for your own tax and NIC. You will need to:
register as self-employed with HMRC,
understand what taxes you must pay and when,
and file a Self Assessment tax return.
What is the ‘tax year’?
The tax year runs from 6 April to 5 April, so the 2019/20 tax year will be from 6 April 2019 to 5 April 2020
How and when should you notify HMRC that you are self-employed?
Once you have started your business, you should register with HMRC online as soon as possible and no later than 5 October after the end of the tax year in which you started. Free link below.
For example, if you started trading in July 2020 (2020/21 tax year), you should tell HMRC no later than 5 October 2021 (as it is the October after the 2020/21 tax year ended).
There is an exception to this if your income from your business is below £1,000 and you are eligible and want to claim the trading allowance.
What happens if I do not file a self-assessment tax return?
HMRC will charge interest and penalties if you do not register by the deadline. The later you tell them, the more penalties and interest they will apply! Overdue tax, interest and penalties add up very quickly, so we suggest you do all you can to not be in this position. Let us help you.
If you need to file a self assessment tax return, get an accountant to sort it out for you – better yet, ask us to help you. We have an enormous amount of experience in helping sole trader and small businesses to make sure you have the confidence that your tax affairs are being taken care of.
How do I pay less tax?
There are various ways to pay less tax. It can be as simple as claiming for XYZ, or can be more creative involving companies, timing and conditions.
It is important that any tax advice is tailored to your situation, attitude to risk, goals, and expectations.
We will do all we can to make sure you pay no more tax that you need to – leaving you to concentrate on your business.
In short, if you want to find out how you can pay less tax – get in touch.
What type of business should I be setting up?
One important decision when you are starting your own business is what type of business structure to use. For example, you could decide to set up a limited company, a partnership, or be a self-employed individual.
There can be some advantages and disadvantages to whichever way you choose. If you are unsure about what type of business
structure to use, then get in touch.
What business records do I need to keep?
You need to keep good records of your business income and expenses. We will use these to prepare your accounts / self-assessment tax return. The format will depend on the size and nature of your business.
What is Value Added Tax (VAT)?
VAT is a sales tax that is added to the services that you provide.
When running your business, you might need to or choose to register for VAT and charge VAT to your customers. VAT is usually charged at a standard rate of 20%.
There are several different VAT schemes which your business may be able to benefit from. If you are a VAT registered business, you will normally:
offset the VAT you have been charged by your suppliers
against the VAT you have charged your customers
You will then pay over to HMRC the difference
If you have paid for more VAT than you have charged, you will be due a refund from HMRC.
Growing your business? Here’s a few things to consider
We can of course support on all these areas and more, but as a flavour…
Cash is king - set money aside for example, expansion plans, replacing equipment, paying your tax and NIC when they are due
In for a penny, in for a pension pot – consider your financial plans. Will you be entitled to the state pension? Should you obtain professional advice regarding a private pension?
Out with the old, in with a new business structure – such as a company or partnership. Pros and cons for each, make sure you have the one which is best suited to your circumstances.
Keep on the straight and narrow – Meet your legal obligations – depending on the sector your business is in, there may be additional legal requirements such as health and safety, data protection and employment law. Ensure you are aware and comply with any regulations which affect your business.