I've started my own business in the last few months, and since starting I haven't paid myself at all - we've been living on my wife's wages (which are more than enough to be sustainable) and finally we will be back to 2 incomes - however I'm not totally sure on how it all works and can't seem to find anything that helps me. I was paid via PAYE for just the first month of this tax year, which is all the income in my name so far. Do I need to put that on my self assessment or will HMRC already know about it? How does mixing PAYE and self-employed earnings work? I have plenty of time to figure this out, I'd just rather be as prepared as I can be!
I could also use some advice with budgeting to account for taxes that will come out, as it's not like PAYE where the taxes are paid before you even get your wages. I used to use this << Link Removed >> as a quick and dirty way to get a pretty accurate amount of taxes coming out without having to dig through my payslips. Would I still be able to use this, and do/did any of you do something like this?
Sorry for tons of questions at once! Thanks in advance for any help though (:
Hi Owen
This is a website for professional bookkeepers and accountants to exchange information rather than for members of the public.
You say you are self employed - therefore you cannot run yourself through PAYE.
The calculator is not appropriate for your business status.
Mr Moderator - will you remove link?
Best advice is to get yourself an Accountant who can work through whether or not the business you have set up is the correct structure thinking about future and existing circumstances and will also provide guidance as to the most tax efficient way of extracting money for you.
You might think you cannot afford an Accountant just yet, but really you cannot afford not to do it and get it right. The key is in the words tax planning - ie planning as in forward thinking. Better than unravelling a mess in a few months.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Well done that you're thinking ahead, not many new businesses do. Like Joanne says, getting an accountant on board at the beginning so he/she can help you with the tax side is a good idea. A lot of people see an accountant as an unwanted expense, but it should be viewed as an investment in your business.
Get 2 or 3 quotes and ask about paying a fixed monthly fee. That way you're paying towards your first years return anyway, which you would need to shell out at the end if you don't complete your own self assessment, which isn't a good idea if you're unsure how it works.
Wishing you and your business every success.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Thanks in advance for any help though (:
