Archive for Downsizer For an ethical approach to consumption
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Frewen
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how many hours work per weekdo you small business people spend on paperwork?
I'm wondering whether or not it's really worth going self employed at this juncture.
I get home reponsibilities protection at the moment and in all honesty I'm never going to make more than pin money from needle felt.
I can see me spending more time and money than I have for little gain.
If I set up the website I'll need to register as self employed because I'll be offering things for sale that I've made myself for more than the cost of the materials.
By the time I've paid and claimed back NI contributions, done the books, paid an accountant, I'm not sure now is the right time.
There is an element of vanity here. Part of me wants to be able to say "here's my card" when people ask what I do (rather than say "housewife").
It's also a way of bridging the gap in my CV that I'll have because I took time off to raise my children (being a "housewife" is not a good term there either) 
But I've got my city and guilds to do, my music studies to finish, the food group to run and the children to attend to.
I could always just add some voluntary work next year to solve the CV problem ...
just thinking out loud really...
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jema
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I guess I don't do more than an hour a week on paperwork. Though tomorrow will be a few hours as it is VAT time again.
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judith
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For the sort of business you outline, the paperwork should be minimal. Essentially, all you have to do is record your incomings and outgoings, and every so often compare the two to make sure you are on the right track and take a look at your bank statement to make sure any money has gone where it should.
So, for your needs, it really shouldn't take more than say 15 minutes each week at the absolute tops.
You don't need an accountant for that level of business as for under about £15 k the tax filing information really is minimal. Even above that, a sole trader's tax is pretty straightforward if you aren't trying to hide anything!
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RichardW
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Re: how many hours work per weekhow long do you small business people spend on paperwork?
Varies from none for ages to a couple of hours.
I guess to do each vat return (4 per year) takes 20-30 mins.
Income tax return for me, partner & partnesrship takes about 2 hours all up.
Doing the SFP paper work takes 20mins per year
I get home reponsibilities protection at the moment
You can still claim that I think as a low earner still working from home
and in all honesty I'm never going to make more than pin money from needle felt.
But what can you save yourself? Heating, elec, travel ect. Will you be able to claim the same & have some earnings?
By the time I've paid and claimed back NI contributions,
You dont pay it. you can claim exemption if earning under £4 & 1/2k ish
done the books,
Should not take long to list all purchases & sales
paid an accountant,
Do your own its not hard, if your tax bill is less than an accountants fee why pay an accountant? If they cant save you more than their fee dont use one.
I'm not sure now is the right time.
Only you can decide that
RichardW
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Ian33568
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I was self-employed in the UK for five years before relocating - like you I did wonder if it would be worth it with all the paperwork etc. Like fellow posters have said - it wasn't really a problem after I had done it the first time and it did help that I could claim some of my home expenses for working from a home base.
The key for me was setting up clear and simple systems for recording expenditure and income, filing receipts etc and time each week for making sure everything was up-to-date.
Unless you really want to set-up a small business I would keep your sales on an informal basis - if you want to run a business then you need to put more time in: marketing, sales, making things to sell - enough stock, sourcing materials, fairs (maybe) and a host of other things that will result. It can be rewarding but it can also take the pleasure out of an enjoyable hobby.
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wellington womble
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Do it and see - in terms of your personal paperwork, it's only the tax return - they ask you what you you earned, what your claming exemption on, and how much tax you owe on the rest (so you take the second figure off the first, and calculate a percentage of the reminder. Once you figure out what you can offset (they IR are very helpful, and it's quite straightforward most of the time) the rest is a piece of cake. You need to record everything that comes in and goes out, and then add it up at the end of the year. If it really is just pin money, then you'll probably end up paying no tax at all, (I think you have to make over £4000ish after you take off your allowable expenses). NI is just 2 quid a week (or maybe a little more) You don't need to do anything more complex unless you want to be a limited company, and at this stage, you don't. You don't need to be a limited company to have a business card - anyone can, enough if you are only selling a few bits of your hobbies that the taxman doesn't know about (not that I'm condoning that, of course!)
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Chez
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When Arvo was a sole trader, which is what you are talking about, he had a separate bank account for anything to do with 'the business'.
We ran a spreadsheet with two 'sheets' in it, one for income, one for outgoings and expenses.
As far as I remember, you stick those two figures on your online tax return every year, and that, basically, is it. As WW says, the IR are very helpful re what you can claim and what you can't.
The only thing is that if you are buying in physical 'stuff', then it may pay you to be VAT registered (there is no legal obligation to do so unless your turnover is in excess of somewhere like £60K). However, that's pretty easy, too, and can be submitted online.
You don't need anything more complicated company-wise - limitation etc isn't necessary.
Timewise, if that was all I had to do rather than wade through Arvo's labyrinthine expenses every three months, it would probably take me an hour or two a week, maximum.
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Barefoot Andrew
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I use Quickbooks for my business and personal accounts. I've no concrete idea of how long I spend on it, but I tend to make entries whenever they're needed rather than stacking up a big todo pile, and it's only a few minutes here and there.
Tax return takes me about half an hour I suppose - my accounts are quite straight forward.
On a personal accounting front, however, I periodically tot up current assets (money in the bank plus open invoices), versus liabilities (living expenses for x months ahead plus current credit card balances). I keep a fairly tight rain on my '2008 grand plan' and this takes about an hour, maybe 90 mins, roughly once a fortnight.
A.
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Penny
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Microsoft have just launched new accounting software to compete with Sage. On first inpection, my sister (THE BOOKKEEPER) is quite impressed  (I didn't really mean bookkeeper to be in caps,  I blame the Cava)
It's free to download, and is compatible with excel and word for invoicing and stock control purposes.
Might be worth a look.
Steve spends a couple of hours a day at least on ours, plus we have a bookkeeper and an accountant who do the frilly bits, so it really depends. You could get away with a few minutes a day for a small concern.
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vegplot
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Keep it simple that way you won't overload yourself with paperwork. Aside from invoicing our heaviest paperwork load are employee wages, taxes, NI, and other documentation. A sole trader's paperwork, tax returns and VAT, shouldn't take more than a couple of hours a month if you keep tidy records.
Try to do eveything online when possible, sometimes you're offered financial incentives to do so but make sure you keep paper records, seven years is the requirement, forty years for employee records.
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Ginkotree
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have you considered teaching the skill to suppliment income. I found at the wool festival people wanted to learnHow To a much as buy
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Pea
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About half an hour to do the VAT every three months, sometimes a little longer when the day boay is going out during the summer. The limited company takes a little longer to do the three way match as we do have a lot of transcations. The sole trader accounts take about 2 hours to do the three way match for the year.
Pea
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Frewen
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I have decided not to go self employed at the moment.
I am not in a position with my small family and existing commitments to really grow my business the way I would like; so instead I am going to enjoy creating the things I want to make.
I may sell a bit along the way, but it will be strictly at cost so as not to incur the wrath of the taxman. 
I might still put the website up, but only to showcase my work.
I know what I want to do in the future - I'll just have to be a bit patient
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lettucewoman
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frewen if you earn less than your allowance plus minimal allowances against tax, you can sell your stuff at a small profit. the pesonal allowance atm is £5435 before you have to start paying tax.
My jewellery business does not come into the tax bracket atm, if it did I would claim for various allowances, percentage heat light etc etc. -accounts are simple (they have to be) and filling in the forms takes an hour or so. I do pay NI, but if I earn only or less than £4000ish I will claim exemption.
You should make a profit on your lovely creations - after all, you spend time doing them and should pay yourself for that time..
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Frewen
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I was just about to pm you 
your kit is in the post
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lettucewoman
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| Frewen wrote: | I was just about to pm you
your kit is in the post |
cool!!
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