Advice on Being A Self-Employed Model?

Advice on Being A Self-Employed Model?

35 posts
16 May 2012
Hello, just wondering if any of you have registered as a self employed model and how it all work's?....I registered in January but I'm not really sure what happen's next? Is it just a case of writing down everything I have earned and completing a tax return at the end of the year to let them know? I don't want to end up with a massive bill. I'm so confused by all this any help would be much appreciated Thank you Tina
Posted 16 May 2012
otteypm
Photographer
otteypm
When I registered the tax office ran some really useful short courses, they were free. Covered all the basics of accounting for yourself, what you can claim for and so on. Give your local office a ring and see if they still do them.


Posted 16 May 2012
ChrisCobb
Photographer
ChrisCobb
If you commenced self employment in January 2012, your Tax Return will need to include your profits (income less allowable expenses) for the period from then until 5th April 2012.

You will also need to include on the tax return (in separate sections) details of any other earnings (PAYE jobs, other self employments etc) and other income received (interest, dividends, rent etc).

Tax will be calculated on total less your personal allowance for the year (£7,475) and any amount due (after deduction of amounts already paid) will be due by 31st Jan 2013.

The deadline for completion of your tax return (if filing online) is also 31st Jan.

Posted 16 May 2012
otteypm

When I registered the tax office ran some really useful short courses, they were free. Covered all the basics of accounting for yourself, what you can claim for and so on. Give your local office a ring and see if they still do them.


Same here, when I first called to register they asked if it would be something I would be interested in and sent out the details along with the letter.
Posted 16 May 2012
jpv
Photographer
jpv
As stated above take up a free course. IN THE MEAN TIME make sure you keep records. Records of what you are paid, when and from whom (Amount and date) Records of what you have paid out (Amount and date and KEEP the receipt). You will need to agree what you can claim, remember to be clear, claim everything you can think of. They can always reject it. Things such as make-up, clothes, hairdressing, gym membership. Anything you do to keep yourself a marketable product. Purestorm membership for instance. Keep a record of all the mileage you do, private and for business so you can justify your claims re transport. A diary showing your bookings should be kept and retained so that you can if required justify your tax return. Remember if you keep records and are honest the Tax authorities can be surprisingly helpful.
Posted 16 May 2012
DISCLAIMER: I'm not an accountant or anything, this is just what I found out when googling and reading on HMRC and bugging accountant friends last year when I was fighting with my tax return. I might be wrong. I might be very wrong. Please double check all of this shpeel.

You need to fill in a tax return every financial year. Financial years end on the 5th April, and you have until 31st January to submit your self-assessment form and pay any outstanding tax.

If you've already registered self-employed and registered for self-assessment, go here:
https://online.hmrc.gov.uk/login
And log in using your user ID and password (if you don't know your user ID and password you might have a problem; I guess you'd talk to HMRC about it?).

From that portal you can fill in your self-assessment.

Tax is taken from *profits*. So if you keep track of your earnings, and keep track of your expenses (travel expenses (but NOT travel expenses you get refunded for, only travel expenses that you pay yourself), food you pay for while on the job, unavoidable business expenses (like modelling-only make up and clothes, but not clothes/make up that you use outside of modelling as well), website subscriptions, phone bill if you have a separate modelling phone) you pay tax on your earnings minus your expenses.

Your first £8,105 of profit is untaxed, then you'll pay income tax at a rate of 20% on any further profit. So if you make £10,000 profit then you'll pay tax on 10,000 - 8,105 = 1895; 20% of 1895 is £37.90, so that's how much income tax you'd pay that year. (In addition to any National Insurance contributions.)
More here: http://www.hmrc.gov.uk/incometax/personal-allow.htm
And here: http://www.hmrc.gov.uk/incometax/basics.htm

If your profits are over £5,595 you'll have to pay class 2 National Insurance contributions, which is £2.65/week.
If you pay income tax as well, then you'll have to pay class 4 NI contributions at 9% of your taxable income.
More stuff: http://www.hmrc.gov.uk/ni/intro/basics.htm

This applies to your *total* income, so if you do any other freelance work include that in your self-assessment. I'm not sure how it works if you're also employed and getting regular paychecks from your employer.

If you claim any benefits, they may be taxable. Some benefits are taxed and you need to include them in your self-assessment. Others aren't and you can leave them out.
Here's the list of benefits that are and aren't taxed: http://www.direct.gov.uk/en/moneytaxandbenefits/taxes/taxonbenefitspensionsandmaintenance/dg_10027059

And everything changes if you earn over a certain threshold. You need to be VAT registered if you earn over £75,000, for instance. (At least I think it's £75,000.) The rate of income tax and the rate of NI also goes up if you earn over a certain threshold, which I think is something like £30k - but seriously, how many Purestorm models are making that kind of money?


Posted 16 May 2012
Edited by Tansy_Blue 16 May 2012
Tansy_Blue
DISCLAIMER: I'm not an accountant or anything, this is just what I found out when googling and reading on HMRC and bugging accountant friends last year when I was fighting with my tax return. I might be wrong. I might be very wrong. Please double check all of this shpeel. You need to fill in a tax return every financial year. Financial years end on the 5th April, and you have until 31st January to submit your self-assessment form and pay any outstanding tax. If you've already registered self-employed and registered for self-assessment, go here: https://online.hmrc.gov.uk/login Thank you so much for your help, it is definitely a lot clearer to me now...although I'm a little bit worried as I didn't do my tax return's for April :-s have have registered to do my tax return's online and now have to wait to get some sort of code in the post. x And log in using your user ID and password (if you don't know your user ID and password you might have a problem; I guess you'd talk to HMRC about it?). From that portal you can fill in your self-assessment. Tax is taken from *profits*. So if you keep track of your earnings, and keep track of your expenses (travel expenses (but NOT travel expenses you get refunded for, only travel expenses that you pay yourself), food you pay for while on the job, unavoidable business expenses (like modelling-only make up and clothes, but not clothes/make up that you use outside of modelling as well), website subscriptions, phone bill if you have a separate modelling phone) you pay tax on your earnings minus your expenses. Your first £8,105 of profit is untaxed, then you'll pay income tax at a rate of 20% on any further profit. So if you make £10,000 profit then you'll pay tax on 10,000 - 8,105 = 1895; 20% of 1895 is £37.90, so that's how much income tax you'd pay that year. (In addition to any National Insurance contributions.) More here: http://www.hmrc.gov.uk/incometax/personal-allow.htm And here: http://www.hmrc.gov.uk/incometax/basics.htm If your profits are over £5,595 you'll have to pay class 2 National Insurance contributions, which is £2.65/week. If you pay income tax as well, then you'll have to pay class 4 NI contributions at 9% of your taxable income. More stuff: http://www.hmrc.gov.uk/ni/intro/basics.htm This applies to your *total* income, so if you do any other freelance work include that in your self-assessment. I'm not sure how it works if you're also employed and getting regular paychecks from your employer. If you claim any benefits, they may be taxable. Some benefits are taxed and you need to include them in your self-assessment. Others aren't and you can leave them out. Here's the list of benefits that are and aren't taxed: http://www.direct.gov.uk/en/moneytaxandbenefits/taxes/taxonbenefitspensionsandmaintenance/dg_10027059 And everything changes if you earn over a certain threshold. You need to be VAT registered if you earn over £75,000, for instance. (At least I think it's £75,000.) The rate of income tax and the rate of NI also goes up if you earn over a certain threshold, which I think is something like £30k - but seriously, how many Purestorm models are making that kind of money?
Posted 16 May 2012
pinkbuildingphotography
Photographer
pinkbuilding..
Sorry

I have not said go through the HMRC website and a lot of the information is on there.

Also the advice on modelbitch is quite good.

http://modelbitch.blogspot.co.uk/2011/06/best-piece-of-modeling-business-advice.html

Posted 16 May 2012
Tansy_Blue


Thank you so much for your help,


it is definitely a lot clearer to me now...although I'm a little bit worried as I didn't do my tax return's for April :-s have have registered to do my tax return's online and now have to wait to get some sort of code in the post.

x


Posted 16 May 2012
ChrisCobb
Photographer
ChrisCobb
it is definitely a lot clearer to me now...although I'm a little bit worried as I didn't do my tax return's for April :-s have have registered to do my tax return's online and now have to wait to get some sort of code in the post. x
Don't stress about it - the deadline for getting your 2012 Tax Return completed and submitted is 31st Jan 2013
Posted 16 May 2012
Don't fuss, I did my tax return for '10 - '11 about six months late and no one seemed to care. (Then again I did make about fifty quid in that period. :P)

Posted 16 May 2012
ChrisCobb
Photographer
ChrisCobb
Tansy_Blue
Don't fuss, I did my tax return for '10 - '11 about six months late and no one seemed to care. (Then again I did make about fifty quid in that period. :P)
The deadline for the 2010/11 Tax Return was only 3 and half months ago - ie 31st Jan 2012.
Posted 16 May 2012
PeterH
Photographer
PeterH
Get a local, friendly accountant to go through things with you the first time you do your return. You can claim his services as an expense, and he'll know a few tricks to save you a few quid. I paid my accountant £200 and he found £600+ of savings on my first return, so it could be worth it.

Posted 16 May 2012
BaileyK
Model
BaileyK
You get a letter when its due
Posted 16 May 2012
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