How much will the overheads be..?
I've taken some time to gather varied and some detailed info from the web and of my own.
This can be so varied i'm just going to stick to the basic details of my expenses and running costs, You'll probably end up with some others depending on your profession.
Accountants and bookkeeping
Unless your an accountant or bookkeeper, you'll need to pay someone, or a family/friend will be helping you.
From personal experience it is best to keep up with the bookkeeping and concurrently your tax and vat returns. If you don't manage this correctly you'll end up spending more than you have in the business, and go bust..lose your house and be extremely depressed.
My bookkeeping as a Limited Company in the building industry is very labour intensive, my bookkeeping is about £100 a month depending on the accounting period. This includes payroll for an employee.
And accountants fees for the year are £900 based on all the bookkeeping being done.
So that's £2100 a year.
Vehicle and Van costs.
Whether you've got a car or van, or get the train to work. You need to add this cost.
Some may have an old vehicle and might not think that you should be charging a client for the overheads. But look at the following link for a more detailed view of running costs and be amazed! I was..
http://media.rac.co.uk/pdf/rac-cost-of-motoring-index-2011.pdf
My fairly new van, will cost me £7500 per year
This includes insurance, fuel, depreciation, tax, interest on a loan etc
Tools, equipment, stationary and computing.
My trade as a carpenter can be the most expensive trade. Tools can cost the Earth, furthermore they wear out and need maintenance or sharpening. Typically i would spend £100-£150 a month on tools and sharpening saw blades.
Do you have a computer for work, printer! web connection at home... the list can endless. Lets say that a computer and all the thigs that go with it cost me approx £200 a year.
Stationary..include business cards, paper, note books, pens/pencils, envelopes, stamps....suppose it depends on your business. Mine is £40-50 a year.
Business premises and or working from home
Is your house your office, do you work on the road have to pay for accomodation.
Look at the following HMRC advise to there tax inspectors.
I'm usually in the office about 5-10 hours a week. And i charge the company £25 a month. Or £300 a year
I also rent a small barn for £300 a month, because i don't have a garage it allows me to do work in the dry.
Thats £3600 ayear
Expenses so far £13750 a year.
Mine is not an ordinary Company and these costs could be greater or less. But the most important thing is to make sure they are included!
http://selfemployed360.blogspot.co.uk/
I've taken some time to gather varied and some detailed info from the web and of my own.
This can be so varied i'm just going to stick to the basic details of my expenses and running costs, You'll probably end up with some others depending on your profession.
Accountants and bookkeeping
Unless your an accountant or bookkeeper, you'll need to pay someone, or a family/friend will be helping you.
From personal experience it is best to keep up with the bookkeeping and concurrently your tax and vat returns. If you don't manage this correctly you'll end up spending more than you have in the business, and go bust..lose your house and be extremely depressed.
My bookkeeping as a Limited Company in the building industry is very labour intensive, my bookkeeping is about £100 a month depending on the accounting period. This includes payroll for an employee.
And accountants fees for the year are £900 based on all the bookkeeping being done.
So that's £2100 a year.
Vehicle and Van costs.
Whether you've got a car or van, or get the train to work. You need to add this cost.
Some may have an old vehicle and might not think that you should be charging a client for the overheads. But look at the following link for a more detailed view of running costs and be amazed! I was..
http://media.rac.co.uk/pdf/rac-cost-of-motoring-index-2011.pdf
My fairly new van, will cost me £7500 per year
This includes insurance, fuel, depreciation, tax, interest on a loan etc
Tools, equipment, stationary and computing.
My trade as a carpenter can be the most expensive trade. Tools can cost the Earth, furthermore they wear out and need maintenance or sharpening. Typically i would spend £100-£150 a month on tools and sharpening saw blades.
Do you have a computer for work, printer! web connection at home... the list can endless. Lets say that a computer and all the thigs that go with it cost me approx £200 a year.
Stationary..include business cards, paper, note books, pens/pencils, envelopes, stamps....suppose it depends on your business. Mine is £40-50 a year.
Business premises and or working from home
Is your house your office, do you work on the road have to pay for accomodation.
Look at the following HMRC advise to there tax inspectors.
I'm usually in the office about 5-10 hours a week. And i charge the company £25 a month. Or £300 a year
I also rent a small barn for £300 a month, because i don't have a garage it allows me to do work in the dry.
Thats £3600 ayear
Expenses so far £13750 a year.
Mine is not an ordinary Company and these costs could be greater or less. But the most important thing is to make sure they are included!
http://selfemployed360.blogspot.co.uk/
Erm...ok
