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Sole Trader Business Structure - Do’s and Don’ts.
Discover today how you can ever so simply register as a sole trader and get your tutoring business up and running. Join Neil as he discusses the importance of registering and paying your taxes, what business expenses you can claim back and the importance of having a separate business bank account.
KEY TAKEAWAYS
- Becoming a Sole Trader is a simple process. There is no separation between you and your venture. You are fully liable, the business is an extension of you. Therefore, the business liabilities are yours and the profits are all yours to keep.
- Open a separate personal bank account. You mustn’t mix business money and your own money. It will confuse you and be very hard to untangle and account for. Tell HMRC ASAP because you’ll need to register for self-assessment and declare your earnings.
- Find out about Allowances for your business, these can include; Home use; Clothing; Mileage and use of your car; Equipment (laptops, stationery, guitars, software needed for work, etc) and Travel costs.
- Remember, you only pay tax on profits, not turnover. Turnover is the money that comes in – profit is what’s left after your costs have been paid.
- If you have a job, any sole trader losses can be offset against your PAYE income – new businesses often lose money for a few years as a business is built up and startup costs consume more than you have coming in. You could therefore claim a tax refund, because a sole trader loss can be offset, leaving the Nett income of day job minus Sole Trader losses as taxable income.
BEST MOMENTS
“Don’t piss off Johnny taxman – he’s a Goliath - armed to the teeth and backed up by a battalion of highly qualified and relentless people who will bury you.”
“You might be surprised how much you can claim against your earnings”
“If you’ve drifted into tutoring, don’t neglect to tell HMRC and make sure you claim every allowance you can.”
VALUABLE RESOURCES
- Listen to The Tutor Podcast on the Apple Podcasts (https://podcasts.apple.com/us/podcast/the-tutor-podcast/id1369191372)!
- Build Your Online Course Week 1: https://podcasts.apple.com/us/podcast/build-your-online-course/id1369191372?i=1000477109724
ABOUT THE HOST
Neil Cowmeadow is a maverick peripatetic guitar teacher from Telford with over 19 years of experience in the business of helping people. Learn how to start, grow and love your business with Neil’s invaluable advice and tips without the buzzwords and BS!
CONTACT METHOD
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By Neil Cowmeadow
4.5
1010 ratings
Discover today how you can ever so simply register as a sole trader and get your tutoring business up and running. Join Neil as he discusses the importance of registering and paying your taxes, what business expenses you can claim back and the importance of having a separate business bank account.
KEY TAKEAWAYS
- Becoming a Sole Trader is a simple process. There is no separation between you and your venture. You are fully liable, the business is an extension of you. Therefore, the business liabilities are yours and the profits are all yours to keep.
- Open a separate personal bank account. You mustn’t mix business money and your own money. It will confuse you and be very hard to untangle and account for. Tell HMRC ASAP because you’ll need to register for self-assessment and declare your earnings.
- Find out about Allowances for your business, these can include; Home use; Clothing; Mileage and use of your car; Equipment (laptops, stationery, guitars, software needed for work, etc) and Travel costs.
- Remember, you only pay tax on profits, not turnover. Turnover is the money that comes in – profit is what’s left after your costs have been paid.
- If you have a job, any sole trader losses can be offset against your PAYE income – new businesses often lose money for a few years as a business is built up and startup costs consume more than you have coming in. You could therefore claim a tax refund, because a sole trader loss can be offset, leaving the Nett income of day job minus Sole Trader losses as taxable income.
BEST MOMENTS
“Don’t piss off Johnny taxman – he’s a Goliath - armed to the teeth and backed up by a battalion of highly qualified and relentless people who will bury you.”
“You might be surprised how much you can claim against your earnings”
“If you’ve drifted into tutoring, don’t neglect to tell HMRC and make sure you claim every allowance you can.”
VALUABLE RESOURCES
- Listen to The Tutor Podcast on the Apple Podcasts (https://podcasts.apple.com/us/podcast/the-tutor-podcast/id1369191372)!
- Build Your Online Course Week 1: https://podcasts.apple.com/us/podcast/build-your-online-course/id1369191372?i=1000477109724
ABOUT THE HOST
Neil Cowmeadow is a maverick peripatetic guitar teacher from Telford with over 19 years of experience in the business of helping people. Learn how to start, grow and love your business with Neil’s invaluable advice and tips without the buzzwords and BS!
CONTACT METHOD
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