New to all this. Need some advise

SteveConsultant · #1 (**permalink**) 26-08-2008, 07:32

Hello All,

Im hoping you can help...

I have been a business analyst / Software improvements consultant for a number of years. Working for several high profile companies and industries..

I now want to break free and become an independent consultant...

What I need to know, is how do I pay my tax. How do I work it out, how much should I be paying. Should I become VAT registered and charge VAT. I have not even started my business or registered it yet. But I have worked out the whole companies house bit and also spoken with my bank who can arrange a bank account for me....

At the moment im just by myself, but does the VAT/Tax issue change if I employe someone??

Its just the VAT and TAX element that I am unsure on... Sorry if this has been asked before, but your help would be much appreciated.

If this helps at all, I am in the process of signing accepting a contract to work for a number of NHS trusts, which has been agreed on £85k for the year.

Thank you Very Much

Steve

who_me · #2 (**permalink**) 05-09-2008, 19:55

Hi Steve,

You can pay yourself in a number of different ways from PAYE, dividend or invoice the company... or all three

VAT is no bearing on employees however there are company contribution on NI that need to be considered when having employees, you can easily hire a payroll company to do your payroll stuff, they charge from around £10 per head.

85k is above the uk threshold for registering for VAT so yes you'll need to register.

I stongly recommend that you talk you business link... (I’d post the link but this site is pants so I can't). They will be able to answer these questions (and the 10 million more I suspect you have)

good luck J

tax-sorted · #3 (**permalink**) 06-09-2008, 06:46

Hi Steve
go to my website and download some guides. there's lots of information there - all written in plain English!

Paul Norman · #4 (**permalink**) 06-09-2008, 18:32

Steve - it really isnt that complicated! However, it is very important to get it right!

I would recommend talking to someone face to face, like an accountant (loads on here) and they will quickly demystify it.

Or fire me off a PM/email with your questions, and I will help - no charge for a chat!

HomebuyerConsultancy · #5 (**permalink**) 12-09-2008, 09:15

Steve,

You'll have so much to think about when starting your new business, it is well worth having a professional on your side when it comes to tax and VAT.

Speak to somebody like Paul who wrote the last post or speak to a local accountant. Most won't charge huge amounts for their services and it will be one less headache as you concentrate on gathering clients for your business.

Good luck for the future.

Mark