Wednesday 22 June 2011

Why did I go legit!

Unlike many of you out there trying to make a quid or two with your photography I decided, in the light of being signed on as a contractor for a major construction company, that I would go legit and register as self employed. First mistake was that the first job was April 1st and pre-dated the new tax year. This initially led to HMRC (the taxman) deciding I would have to do a tax return for the whole of 2010/2011 and gave me a bill for class 2 contributions for 2 weeks within days! After protracted attempts to call them - does anyone ever answer! - and a detailed letter they finally accepted that as the only paying job in my new business in that year would not be paid until 2011/2012 I could do my first return for 2011-2012 and can claim back my insurance paid! 1st victory and probably the last.

Went on an HMRC free course for self employed today - the basics and nothing new to me really. Took the opportunity to discuss a couple of possible product shoots with other newly set up businesses looking for photography so might not have been a total loss.
Anyway I now know I`ll claim my mileage on a 45p per mile rate (up from 40), have more idea what format to keep my records in and know what I can claim for the office in my house. Next week is another one specifically dealing with capital allowances and claimable expenses. Remarkably more interesting than you think it would be when it means paying less tax if you get it right. I`ll be there with a few promotion leaflets and business cards eager to learn!

Just need a few more well paid jobs now. Facebook are calling me back Friday offering to sell me an all singing and dancing business page with 1000 friends all seeking a photographer in the area in the next 18 months - con or not?

1 comment:

  1. Welcome to our world, Paul!
    I don't think the Facebook thing's a con, but I'm not sure it will be worth the outlay. Just use that Geordie charm and you'll get loadsawork!

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