[m.b.s.]

hi i know someone who is about to start out but have forgotten how i first registered for tax how long he has to do it and how much can he earn in his first year without paying tax its been a wile since i did it 10 years or so so things will have changed since any advise i can give them cheers

[Tim Rose]

Youll have a tax code - this is what governs the tax you pay. Naturally it can be adjusted depending on what you earn as times passes.

[m.b.s.]

Youll have a tax code - this is what governs the tax you pay. Naturally it can be adjusted depending on what you earn as times passes.

so he needs to register first then he will recive a tax coad am i right its been a long time thank good for accountents how long dose he have to register now adays

[Tim Rose]

If he's working somewhere (PAYE) then he'll have a code.

I think you're just talking about telling the IR that he's now self-employed?  There may be a form for that off thier web site.

i don't know much more than that.  I think you'll fid you need to register within say three months.

[m.b.s.]

If he's working somewhere (PAYE) then he'll have a code.

I think you're just talking about telling the IR that he's now self-employed?  There may be a form for that off thier web site.

i don't know much more than that.  I think you'll fid you need to register within say three months.

hes out of work at the moment i will have a look on the web see if i can find something out for him is he classed as self employed as soon as he gets his first job or as soon as he advertises

[Tim Rose]

The other big thing I have learnt is to maximise your overheads (within reason!) so to reduce the bill.  Noone in the Revenue is going to beleieve that you (or your mate) has spent ALL their turnover on overheads (like kit) and has no tax liability, BUT I spent much more in the first two or even three years of starting up and this reduced by bill nicely.    It didn't mean I had loads of cash for ME, but I got by and built the business, which is the main thing to do isn't it?  Not have loads of cash to splash on wine and women.  Or men or whatever.