Book Keeping

[SilentAlf]

Hi All,

I was hoping for some guidance! What records do you need to keep for tax etc when selling things like printed mugs/T-shirts/Coasters?

Many thanks x

[mgibbs]

All invoices/credit notes - sales and purchase.
Bank statements

Mark

[mrs maggot]

alf, are you self employed, or employed and using this for extra income ?? either way if you contact the tax office they run some great one day courses (free) for business set ups and really help you know whats what

[SilentAlf]

That sounds really good thank you. I am employed and would like to do sublimation as an extra income but want to make sure i do it right

Do you have to earn a certain amount from self employed before it affects anything e.g child benefit etc??

Sorry for all the questions

[logobear]

you need to be able to account for everything, every BUSINESS related cost, and income.
How MUCH detail you record is more for your own education.
There are many cheap or free programs that will heklp you do this on PC or smart phone, but give thought and do it right from the start!
There will probably be free training or awareness days you can attend, most accountants offer first hour free! (then charge the world!)

[mrs maggot]

Silent alf, child benefit should never be affected (unless rules have changed) but for everything else you really do need to ask for proper advice CAB may be able to help, or call your local tax office - or money saving expert forum where a lot of very clued up money people) can help

[smo]

alf, are you self employed, or employed and using this for extra income ?? either way if you contact the tax office they run some great one day courses (free) for business set ups and really help you know whats what

This is irrelevant really.

If he was self employed he needs to register with HMRC within 3 months of starting and pay CLASS2 NI stamp. If he was already employed and thus paying class 1 stamp he would still need to register with HMRC and pay the self-employed class2 NI stamp on top of the class1 he pays through PAYE.

As a self employed person you will have to do a yearly self assesment tax return and will need to keep records of ALL income, and expenditure. You can pay money in and draw it directly from your personal bank account as you are the business, one legal entity and the money is "yours" (unlike Ltd which is a seperate legal entity and the money belongs to the business).

The only time this changes is if you are a Ltd company, and thus an employee with a paye setup and then you only pay class 1 NI......and corporation tax etc!

[bms]

Silent alf, child benefit should never be affected (unless rules have changed) but for everything else you really do need to ask for proper advice CAB may be able to help, or call your local tax office - or money saving expert forum where a lot of very clued up money people) can help

The rules have changed for child benefit but only if your income (that's all your income) is over £50k per annum. So self employed 'profit' if you're a sole trader would come into your self assessment calculation. Marginal income (for tax purposes) above £50k per annum will now lead to a clawback if child benefit through your tax charge. Speak to your accountant if you are near the threshold for specific advice.

[SilentAlf]

Thank youall i really appreciate your help. the other thing i was thinking of was how can i work out profit and loss?

ie. how could i work out how much it would cost in sublimating a mug and selling it for like £5?

[smo]

Those are costings, profit and loss are different although the terms "profit" and "loss" apply to costings too.

Basically work out how much all the parts cost you, mug, ink etc. and subtract this from your selling price. If its a + you made a profit, if its a - you didin't!!!

Our costings are incredibly detailed and take in account everything down to the tonor used to print the postage label and tape used in packing - its a very complex spreadsheet to do correctly but makes life very easy as we can update a supplier cost and instantly know how this reflects on every item its used for.