As a freelancer at some point (usually after the 1st year) you will have to decide whether you will do your own accounts or whether you will hire an accountant. You should first register with the Inland Revenue, notifying them that you are going self-employed (do this as soon as possible, even if you don't file a return in the 1st year. Otherwise you will incur a fine before you've even got off the ground!).
A good accountant will charge you between £200 - £500 to do your accounts for you and it's always best to go for one that has been recommended (it helps if he understands the entertainment industry). The more you earn, the more you pay in tax and so the sensible thing to do, is to put a certain amount aside each month for the tax man.
I say that's the sensible thing to do but todate, I have yet to meet a makeup artist that doesn't run around like a headless chicken come January, when they have left it to the last minute to do their accounts and to find the funds to pay their tax!
I do my own taxes. I do it online direct http://www.hmrc.gov.uk/selfemployed. It's usually quite straight forward. I usually file my return around May, that way I know exactly how much I have to pay and I can easily gauge my budget over the remaining 8 months to find the funds to pay my tax. No surprises, no panic attacks, simples!
The advantage of paying an accountant is that he will know what you can and cannot claim as expenses, so even though you might not like his fee, chances are, he will save you a few bob in the long run. Besides, his fee is tax deductible anyway. Doing it yourself, saves you the annual or monthly fee but it takes a lot of patience (it's not unheard of for me to lock myself away with copious amounts of herbal tea and toast for 3 days, doing it all)
Which ever you decide, don't leave it to the last minute and if you do.......DON'T CALL ME!
A good accountant will charge you between £200 - £500 to do your accounts for you and it's always best to go for one that has been recommended (it helps if he understands the entertainment industry). The more you earn, the more you pay in tax and so the sensible thing to do, is to put a certain amount aside each month for the tax man.
I say that's the sensible thing to do but todate, I have yet to meet a makeup artist that doesn't run around like a headless chicken come January, when they have left it to the last minute to do their accounts and to find the funds to pay their tax!
I do my own taxes. I do it online direct http://www.hmrc.gov.uk/selfemployed. It's usually quite straight forward. I usually file my return around May, that way I know exactly how much I have to pay and I can easily gauge my budget over the remaining 8 months to find the funds to pay my tax. No surprises, no panic attacks, simples!
The advantage of paying an accountant is that he will know what you can and cannot claim as expenses, so even though you might not like his fee, chances are, he will save you a few bob in the long run. Besides, his fee is tax deductible anyway. Doing it yourself, saves you the annual or monthly fee but it takes a lot of patience (it's not unheard of for me to lock myself away with copious amounts of herbal tea and toast for 3 days, doing it all)
Which ever you decide, don't leave it to the last minute and if you do.......DON'T CALL ME!
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