Advice needed with regards to declaring income to HMRC

Advice needed with regards to declaring income to HMRC

24 posts
8 July 2012
RocketMan
Photographer
RocketMan
Also are you buying a N.I. stamp ?

Posted 29 July 2012
_Elise_
Model
_Elise_
grahamsphotography

You have to tell HMRC you are self employed by law. But once you have been on the courses you will find on average that you will pay no tax during the first 3 years. You may even get some back from previous years that you have paid.


how does this work? do you mean that on avarage people that are self employed don't earn enough money to be taxed for the first 3 years?
Posted 29 July 2012
twentytwenty
Photographer
twentytwenty
Ok Have a word with your local job centre, I am not sure what happens in England, but here in Scotland I went to business enterprise. told them what I wanted to do, and they organised a day on book keeping, and another day where I could meet the person from HRMC. she took us through everything about filing your tax/bookkeeping etc. I also came away from there with the phone number of my tax inspector, so if I had any problems or questions I could just phone her.

There must be an equivalent small business start up in England,

Posted 29 July 2012
Thank you for all the advice, have had a change of circumstance now and will not be able to persue paid work anyway so it is now a moot point. Very helpful to remember for the future though.

Posted 29 July 2012
Hotfrog
Photographer
Hotfrog
Firstly relax ! Now the basic rules are if you earn money you have to pay tax . That said you are allowed to deduct your personal tax allowance and any expenses incurred with earning that fee (s).

My advice and it is only advice is to get professional advice from an accountant as there are deadlines you need to meet or else you will be fined by hmrc .

If you are starting out now then you have up to Sept 2013 to declare you income and tax position for tax year up to April 2013 and pay your liabilities by end of jan 2014.

Go and see and accountant. If you do the right thing you have nothing to worry about .

Good luck

Posted 31 July 2012
1919_Images
Photographer
1919_Images
I can see Jenny has said she no longer needs advice but in case any other models are reading there is no need to pay an accountant to sort out your tax liabilities from a few paid modeling jobs, its a simple task of keeping a record of all your paid work and your business expenses, travel/make up/clothes for shoots etc, registering as self employed and completing a tax return on an annual basis(anyone with half a brain can do this there are plenty of notes to help).
I've no idea why anyone would suggest employing an accountant for this when they will charge between £400 & £1000 per year for such a simple job you can do yourself, sure if you've got 4 different jobs or youre getting paid work almost every day then an accountant would be a help but for someone who might only get a couple of paid jobs a month its a complete waste of money.

Posted 31 July 2012
I second the "you don't need an accountant" motion.

I have a file containing the receipt of ANYTHING bought in relation to paid work - petrol, train tickets etc being the obvious choice but right down to hair clips, nude underwear, tights etc. I also have a copy of every invoice i send out filed in chronological order, with a post it note on each one with a few notes about the shoot itself.

Keep yourself organised and it should be a doddle.

Posted 1 Aug 2012
Lisaliz
Model
Lisaliz
Doing your tax online really is straightforward!

Just make careful records of all the money you get paid, plus anything you wish to claim. And don't do what I did, which was to leave it all to the last minute my first year. My only problem was waiting and waiting  to be sent a unique reference number to access the online account - the Revenue had sent all my details to the kebab shop up the road . Any tax you need to pay them is calculated immediately, and with luck you will scrape under the taxable amount at least for the first year. But, however little you earn, you must still fill in a tax form.
Posted 1 Aug 2012
mgphotomedia
Photographer
mgphotomedia
1919_Images

I can see Jenny has said she no longer needs advice but in case any other models are reading there is no need to pay an accountant to sort out your tax liabilities from a few paid modeling jobs, its a simple task of keeping a record of all your paid work and your business expenses, travel/make up/clothes for shoots etc, registering as self employed and completing a tax return on an annual basis(anyone with half a brain can do this there are plenty of notes to help). I've no idea why anyone would suggest employing an accountant for this when they will charge between £400 & £1000 per year for such a simple job you can do yourself, sure if you've got 4 different jobs or youre getting paid work almost every day then an accountant would be a help but for someone who might only get a couple of paid jobs a month its a complete waste of money.


A half decent accountant will almost always be able to save you more tax than you will pay him in fees. From the advice you've given above I can see straight away opportunities for tax reductions that you haven't even considered. Most regional accountants will quote basic self assessment returns from £100-£120 (which is what I'd expect the cost to be for a typical model's affairs). So, for £120 you have the peace of mind of knowing that everything is done correctly, submitted in the appropriate electronic format and at the appropriate time. On top of that your tax bill is reduced by at least as much as the accountant's fees, probably more. Sounds like a no-brainer to me.
Posted 1 Aug 2012
Edited by mgphotomedia 1 Aug 2012
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