Calculating your profit correctly depends on a multitude of factors, such as making sure your records of income and expense are complete, making sure you don’t forget to include items you’ve bought out of your own personal funds, etc. Another key area to consider when preparing your accounts, and your taxable profit, is the accruals [...]
What taxes do I need to pay and when?
February 26, 2013 by Leave a Comment
Taxes you pay as a sole trader or partnership As a sole trader or partner, you will be taxed on the profits you make from your self-employment. In a partnership, you would be taxed on your share in the partnership profits. The good news is that the first £8,105 you earn (2012-13 rate shown) is [...]
Child benefit changes – and how to keep yours
February 22, 2013 by Leave a Comment
From 7th January 2013, child benefit is being reduced in households where there one person earns over £50,000. Those earning between £42,475 and £60,000 will be able to keep some or all of their child benefit depending on their earning levels. If the higher earner in the family earns up to £50k, then no child benefit [...]
Payments on account – double whammy
February 10, 2013 by Leave a Comment
If you are a sole trader, you may well have already come across payments on account. But if you are a fairly new sole trader, please read on to make sure you are prepared for what many see as a double whammy of tax on their profits. Payments on account arise when you have an [...]
Universal tax credits – impact on the self-employed
October 9, 2012 by Leave a Comment
The tax credits system is to be replaced with the Universal Credit which will be introduced from 2013. This new system is likely to be less favourable for the self-employed than the current Working Tax Credits and Child Tax Credits system for the following reasons: The proposed new system will assume a level of income [...]
