so you want to make money from wordpress? - tax tips
TRANSCRIPT
why is this important?
" In this world nothing can be
said to be certain, except death
and taxes." (Benjamin Franklin)• HMRC aren’t always too friendly
if you get on the wrong side of
them• Make the most of your hard
earned money• Better business person• Don’t be an ostrich!
what am I?
Tax situation v Job descriptionEmployed
Self Employed / Sole Trader
Partnership
Limited Company
what is self employment?
Working for yourself to earn income
“But I’m employed”
“But I’m only being paid cash”
“But I don’t make a profit”
“But I don’t get paid anything”
“But I don’t take the money out”
what does it mean for me?
Register as self employed for self assessment
Self employment NI contributions
Submit a self assessment tax return
Self employment profit added to employment income
the good, the bad and the ugly
Only one tax return to do
It’s your personal money
It’s also your personal debt
And your personal tax liability
IR35
the dreaded IR35
Issue for contractors and freelancers
Are you employed or self employed?
Judged on a contract by contract basis
HRMC employment status indicator tool
do I need an accountant?
How much do you like numbers?
How organised are you?
Are you interested?
Good for advice and specialist knowledge
Accountant v. book keeper
get your ****organised!
Business bank account
Keep your receipts
Proper invoices
Get a system
Get a routine
use of home
1. Proportion of costs based on the area of your home used as your office• Utility bills• Home insurance• Mortgage interest
Or
2. £4 per week
motor expenses
Keep track of any business mileage (not including travel to normal place of work)
1. Full Cost - business percentage of all costs (based on business mileage)• All running costs• Cost of vehicle
2. Mileage - based on business mileage• 45p per mile to 10,000 miles then 25p per mile
other useful expenses
Travel and subsistence
Mobile, landline and broadband
Training
Your new MacBook Pro = capital allowances
sorry but no
Business entertaining
Fines and penalties
Self employed NI contributions
Childcare costs
Personal use
tax planning tricks
Tax doesn’t just come once a year
Can get a January double-whammy
Save each month
Magic number is around 25% income
“This isn’t the tax you are looking for.”
useful links
HRMC employment status indicator tool - http://www.hmrc.gov.uk/calcs/esi.htm
Registering for self assessment online - https://online.hmrc.gov.uk/registration/newbusiness/introduction