I m not self employed but a friend of mine is. In her work, the main issues are self assessment for tax and insurance. She is a riding instructor. I would imagine that a lot depends on what work your partner will be doing, but tax and insurance should be high up on his list.
he will need to contact the inland revenue for a unique tax reference. you will need to set up a D/D for national insurance (self employed status - its about ��11.00 per month) you do pay other NI in january, but you have to pay this one in advance keep all sales receipts or copies of sales invoices (duplicate books are good)keep all purchases invoices - even household shopping receipts, if the job is outdoors you can claim cleaning products like washing powder and fuel receipt s are good. try and keep the money from self employment separate from other bank accounts so you know what you have earned. (you can still spend it but it makes it clearer for your accountant) a savings account is good to pay money into, so you re ready for your tax payment in januaryget a good accountant - they can save you a fortune in tax. book-keeping is pretty straight forward. you can buy cash books and ledgers from good stationery shops. If you have children still at school you are still eligible to working tax credits. Good luck in the new business.
The first thing he has to do is write out a Business PlanIf he remains a sole trader then he can do his accounts himselfExpenses are anything he needs to buy that he uses for his business egstock, insurance, vehicle, petrol, paperwork, advertising, specialist clothing etc etcI can t tell you anymore unless I had an idea of what sort of business it was, how many people are working in it, and whether or not he has premises or staff.
If you are new to this then you really have to have an Accountant, at least for the first year or two. His fee will be less than the amount he actually saves you, so it is cost effective. If you don t have an Accountant you will miss out on allowances etc. The paperwork side of thinks is quite simple once you get into it - again, your Accountant will show you the easiest way to lay out your books. Just make sure that you have a systemin place to record receipts etc as they come in. Every piece of paperwork that you lose is money down the drain. If you intend employing anyone then your Accountant will explain all about tax, NI, SSP etc.
