cookstar

iTrader: (6)

Will be starting part time consultancy work, to run alongside my current job.

Now just so I don't look completely stupid when I begin discussing this properly with my soon to be accountant, I would like some background info on how the whole system works.

Using these figures as a rough guide.


Amount invoiced for per year. £20'000 ish

Now this will require quite a bit of driving and parking costs.

Lets say for a really rough guide £3000 per year expenses.


Will I pay the flat rate of tax on the invoiced amount, be it around 20% I think, then will I be able to claim the entire amount of my expenses back at the end of the year??

I pay the higher rate of tax atm in my current job if that makes any difference.

I hope this makes sense, as I really don't know how this works at all.


Cookie

MikeCardiff

iTrader: (2)

Ask your accountant and admit you dont know !

To be honest there are various different ways you can put expenses through, and different ways you can set yourself up and account for assets which give different tax benefits.

Your accountant will be able to look at your situation and work out the best way for you to arrange things to get the most out of it.

David Lock

As above. That's what accountants are for. And don't be afraid of asking roughly what he will charge.

If you are starting before you see your man just make sure you keep a diary and all receipts and bills.

You will eventually pay tax on your total annual income taking into account what you already pay through PAYE.

You'll find loads of stuff on Google about starting out etc. dl

cookstar

iTrader: (6)

Thanks guys, should be speaking to him Friday