Sole Trader
leanneb
Registered Posts: 2 New contributor 🐸
Hello, I'm looking for a bit of advice please.
My husband has started up as a sole trader, he already has a full time job. What I'm looking to find out is if he can put through expenses such as mobile bills etc and if he can take a salary out of his earnings, and if he can does he have to delare what he is spending the money on or is it suimply 'drawings'?
I don't know much about sole trader accounts so any advice will be much appreciated.
Thank you
My husband has started up as a sole trader, he already has a full time job. What I'm looking to find out is if he can put through expenses such as mobile bills etc and if he can take a salary out of his earnings, and if he can does he have to delare what he is spending the money on or is it suimply 'drawings'?
I don't know much about sole trader accounts so any advice will be much appreciated.
Thank you
0
Comments
-
Good morning Leanne,
He can put through his mobile phone expenses, at the year end he will have to add back a percentage for private usage.
He can draw what he likes out of the business, as long as he has the funds in it. I would class it as "Drawings" for now.
He can claim back any expenses incurred in the running of the business.
Has he completed a CWF1 to notify the Revenue that he is self employed as well as employed? He may have to pay a monthly NI contribution as well.
Hope this helps
Peter0 -
Thanks Peter, that great info, just what I needed to know.
Yes he has notified the revenue and he has been paying NI. Why is he having to pay NI when he already pays it through his employer?
Leanne0 -
He is having to pay 3 different sorts of NI. At just over £2.00 per week Class II isn't the worst to pay - if his earnings are going to be low, then he can claim exemption from paying them.
Claudia0 -
Thanks Peter, that great info, just what I needed to know.
Yes he has notified the revenue and he has been paying NI. Why is he having to pay NI when he already pays it through his employer?
Leanne
Mainly because the goverment is greedy, they want a cut of everything. He will then have to pay 8% on his profit as well0 -
Hi,
My husband has started up as a sole trader as well, and he has filed form for small earnings exemption - so he doesn't have to pay NI for self employment. You just need to send that form to revenue saying that your annual profit from self employment won't be higher than £5057. Off course if you know that it will be higher, you shouldn’t claim exemption.0 -
You can also claim deferment of class 2/4 NI if he is paying sufficient NI from his other employment.
I would advise him to seek advice from an accountant.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 325 NEW! Qualifications 2022
- 160 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 274 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 202 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership