Can you juggle?

I never thought I’d be able to juggle, catching one ball is hard enough let alone two or three but somehow I have managed to perfect the art even though there isn’t a ball in sight!

I’ve realised that my whole life is spent juggling.

I am a single mum with two teenage boys and I’ve been juggling for years – juggling my three jobs which can sometimes lead to a diary nightmare. I have yet to work out why everyone wants/needs you on the same day and at the same time, take last week for example had three things to do all on the same day at almost the same time! End of May have been invited to three events on the same day, why am I never asked to do something when my diary page is blank? Why do I always have to juggle?

I juggle the children and my boyfriend now that is tricky how do you manage to keep them all happy? Same problem - they all seem to need/want me at the same time.

I juggle shopping, house work, homework and gardening! That can get messy, especially while bath bomb making!

Then there’s my sisters and my friends oh and must not forget my lovely Dad they all need juggling too sometimes I think I should be an octopus! I do wonder if they realise they are often up in the air so as to speak or do they juggle too?

Mrs Bath

Do I need to register as self-employed?

I have noticed reading some of the network pages on Facebook that a lot of questions come up about what to do when you want to start selling your craft. Well I am hoping to answer some of those questions in this blog.

I am a Certified accounts technician and associate member of the Institute of Certified Bookkeepers. I have worked in chartered accountants for almost 10 years and for the last 5 have been a self-employed bookkeeper. However I must say any advice given to you by your accountant or the tax office should be listened to.

I will set this out as question & answers. If I do not cover something you wish to know please comment and I will try to help.

Q1. Do I need to set-up as a business if I wish to sell my craft?

Yes. As soon as you are actively trying to sell your craft you should set-up as self-employed within 3 months or you could end up with £100 fine. This applies even if you do not sell anything you just need to be looking for sales.

Q2. How do I set-up a business?

Firstly you need to decide what type of business you want or need to set-up.

If you are unsure as to what type of business i.e. self-employed, partnership or Limited company then you should see an accountant to advise you.

If you wish to set-up as a Limited company, I would again employ an accountant to help you complete this process.

Setting up as a sole trader or partnership will mean registering with the Inland Revenue. You can do this by filling in an online form.

https://online.hmrc.gov.uk/shortforms/form/CWF1ST?dept-name=CWF1&sub-dept-name=&location=40&origin=http://www.hmrc.gov.uk
Once you have registered, the Inland revenue will send you a UTR (Unique Tax Reference) this is a 10 digit number that you will need to have for any correspondence with the revenue. I would also urge you to register for the online services so you can fill in your return online. This link gives you all the information on doing this:

http://www.hmrc.gov.uk/sa/understand-online.htm
Q3. Do I need to register with Companies House?

There is no need to register with Companies House as a sole-trader or partnership. However it is a good exercise to check the name of your business with Companies House. This is free and easy to do. No registration is required. Just pop your business name in the box and click search:

http://wck2.companieshouse.gov.uk//wcframe?name=accessCompanyInfo
Q4. Do I have to register for VAT?

No. You will only need to register once your income reaches £77,000 in a 12 month period. There is more information on this on the Inland Revenue website:

http://www.hmrc.gov.uk/vat/start/register/when-to-register.htm
Q5. Do I need to pay NI?

If you are self-employed you need to pay class 2 national insurance this is £2.65 a week (2012/13). You register for National insurance when you register for tax. However if you earn less than £5,595 per year (2012-13) you might not need to pay. You can apply for a Certificate of Small Earnings Exception and not pay Class 2 National Insurance contributions: http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=yKpjabZqCc8&formid=433
You will pay class 4 National insurance on your tax return and you will still pay your class 1 National Insurance via your PAYE.

Q6. How do I keep Accounts?

You should keep a record of all your sales and all your expenses. The sales less your expenses gives you the profit. The Inland Revenue works out the amount of tax you owe them from this profit figure.

Expenses can be anything that has been incurred in the process of selling your product.

List of expenses:-

Materials used

Postage

Packaging

Stationery

Parking

Electricity used (usually a reasonable portion of your household bill)

Internet costs (usually a reasonable portion of your household bill)

Phone (usually a reasonable portion of your household bill)

Storage used for business

Stall

Protective clothing

Equipment / Tools

There are many more depending on your business but these are just an example.

The best way of keeping track of your expenses is to keep all your receipts. List them in date order on a spreadsheet. A computer program is best, as you can then set the software up to calculate the totals, but if you prefer to use a book. You can get cash books from a stationers that are set out to help you keep track of your accounts. You do not need to have a business bank account as a sole trader but I personally think it is a good idea, that way everything is separate and if the Inland Revenue ever want to look through your accounts they can see from the bank statement what has been happening. If you misplace a receipt do not worry or miss it out of your accounts. As long as you have put it in your spreadsheet the Inland Revenue will accept this. Also if you have paid on card it will appear on the statement.

Well I hope this has been helpful and if you have any questions please comment below.



Mrs Jewels