Introducing Fairnurse Accountancy
At Fairnurse, making the transition to self employment couldn’t be easier. For a small monthly fee we will prepare and submit your self assessment tax return on your behalf, leaving you to focus on the things that matter. Whether you are planning on doing work through Fairnurse on a full-time or part-time basis, a self assessment tax return will be required of you by law. Our Fairnurse accountancy package costs just £24.99/month and covers everything you’ll need to make sure you’re compliant with HMRC. To find out more about our accountancy services, email us on firstname.lastname@example.org
Fancy getting 3 months worth of accountancy services for free?
At Fairnurse Accountancy we value the networks our nurses have built up during their careers and we’re always delighted to be referred candidates from within those networks, which is why we have a referral scheme.
How does the referral scheme work?
It’s simple! As a registered client of Fairnurse Accountancy, you qualify when you refer a relevant candidate, who is looking for a new accountant. The candidate must not already be registered with Fairnurse Accountancy. If the candidate decides to sign up with Fairnurse Accountancy, you will receive 3 months of accountancy services for free. It really is that simple!
How do I refer someone?
Ask the candidate to email us on email@example.com quoting your full name. Alternatively, you can get in touch with us directly and pass on their name and contact details (make sure you have their permission first, we don’t want you getting in trouble!) and we’ll be in touch within the next 72 hours. Then you can let us do the rest. Time for you to sit back, relax and save a total of £74.97…easy!
Terms and conditions:
- 3 months free accountancy services per successful single referral
- Accountancy Contract – the referrer will receive 3 months of accountancy services free when the referee has successfully paid 3 months of accountancy services
- The candidate must not already be registered with Fairnurse Accountancy
- The candidate must be eligible to work in the UK
Self-employed tax deductible expenses: what can I claim?
When you’re completing your tax return, you’ll need to work out your expenses, as you can subtract some of these from your turnover to work out your taxable profit.
Understanding allowable expenses
It’s important to understand that you can’t go ahead and subtract all your self-employed expenses. HMRC has clear rules around what you can and can’t include, which is why the costs that you can include in your calculation are called ‘allowable expenses.’ By defining allowable expenses, HMRC is trying to make sure that you only deduct expenses that are strictly related to your business. Understanding which of your self-employed expenses are allowable and calculating your profit accurately is important for making sure you pay the right amount of tax. Here’s an example: Your business earns £25,000 in a tax year, but your allowable expenses add up to £5,000. You only need to pay tax on £20,000, which is your taxable profit.
Which self-employed expenses are allowable expenses?
When you’re completing your tax return, these are some of the costs that usually count as allowable business expenses.
You can include business stationery, printing costs (including printer ink), and postage. You can also include business equipment like computers, mobile phones and printers and computer software.
You can claim expenses for rent, maintenance and repair, utility bills, property insurance and security. You can’t claim expenses for buying or building your business premises. If you run your business from home, you can include part of your home utility bills, but you need to work out the proportion of your home that’s used for business, and what proportion of the month it’s being used for business purposes. If you work from home at least 25 hours a month, you can use ‘simplified expenses’, which is a flat monthly rate calculated by the government.
You can include business-related car or van costs, including vehicle insurance, fuel, hire charges, repairs, servicing and breakdown cover. This can be difficult to calculate, so you can use ‘simplified vehicle expenses’, which is a flat rate provided by the government. You can also include business travel by train, bus, plane or taxi, and hotel rooms and meals during overnight business trips. Bear in mind that travel for meetings, site visits etc, is included, but you can’t claim for the cost of travelling between home and work, so commuting or travelling to your business premises doesn’t count. Also note that if you take a journey for both personal and business reasons, you must be able to separate out the business cost in order to include it.
Legal and financial costs
If you need to hire a professional like an accountant, a solicitor, a surveyor or an architect for business reasons, you can include the cost in your calculation. You can also include bank, overdraft and credit card charges, interest on bank and business loans, hire purchase interest and leasing payments. Note that if you’re using cash basis accounting, you can only claim up to £500 in interest and bank charges.
You can include the cost of business insurance, for example public liability insurance and professional indemnity insurance.
You can include the cost of uniform, necessary protective clothing, or costumes for actors or entertainers, but you can’t include the cost of everyday clothing that you wear to work.
You can include the cost of membership to trade bodies or professional membership organisations if they’re relevant to your business, and the cost of subscriptions to trade or professional journals.
Frequently Asked Questions
By registering myself self-employed, will this affect my current employment status or tax code?
No, not just by registering. Your current employment status and tax code will remain the same.
How do I register to become self-employed?
Step 1 Register yourself self employed on the HMRC website Step 2 You’ll receive a letter with your 10-digit Unique Taxpayer Reference (UTR) Step 3 You’ll also receive a letter within 10 working days with an activation code Step 4 Send your UTR number and your activation code to your accountant at Fairnurse.
What happens if I have sent a self assessment tax return before?
Step 1 Register online on using this link Step 2 You’ll need to find your 10-digit Unique Taxpayer Reference Number (UTR) from when you registered for Self Assessment previously. Step 3 Send your UTR number to your accountant at Fairnurse Accountancy
What is self-employed?
Dictionary definitions of self-employment emphasise earning a living from your own efforts rather than by being employed.
What are the benefits of being self-employed?
There are plenty of perks of being self-employed, including:
- You have more flexibility and control, so it may be easier to fit your work around other commitments and responsibilities, including childcare
- Your work can be more varied, as you may be working on several different projects for different clients at any one time
- You can explore your creative and entrepreneurial side as you build your own business
- You can deduct certain costs – travel and some utilities bills, for example – from your income when you’re calculating your tax liability
- You may have the potential to earn more money, as day rates for self-employed consultants and freelancers tend to be much higher than salaries
- You should be able to ditch your commute, as you’re likely to work from home, or from your own business premises
What can I claim for as self-employed?
Self-employed allowable expenses
In terms of what you can subtract from your income when you’re figuring out the self-employed profit that’s taxable, the list includes business insurance, part of your utility bills if you work from home, office costs, stock and certain business-related travel. Depending on certain factors, you may be able to claim certain benefits. If you’re self-employed and not earning very much money, you may be eligible for income support or working tax credit, although the latter is being replaced by universal credit. Check the government website for more details.
Self-employed tax credits
You can claim Working Tax Credit when you’re self-employed. Self-employed tax credit claimants must show that they’re trading on a commercial basis with the aim of making profits, and that their self-employed work is structured, regular and ongoing.
Self-employed Housing Benefit
You may also be eligible for Housing Benefit and council tax reduction if you’re self-employed but you’re not earning very much money. When the council is calculating your eligibility for benefits like housing benefit, they will probably ask to see your business accounts for the last financial year, or a forecast if you haven’t started trading yet.
Self-employed Universal Credit
You may be eligible for Universal Credit if you’re self-employed. You will have to declare your earnings at the end of each monthly assessment period, and will have to give details of any payments into or out of your business. Your work coach will also ask to see records of customers and suppliers, and marketing materials. Your Universal Credit payments may be calculated based on your assumed earnings, which are known as the Minimum Income Floor. However, a different method may be used if you are in your first 12 months of self-employment, during which the Minimum Income Floor may not apply. During this period you may also be entitled to meetings with a work coach who’s specifically trained in self-employment.
How do I join Fairnurse Accountancy?
When you join Fairnurse, there will be an option to join Fairnurse Accountancy services, you simply tick this box and you will receive an email from your accountant with further instructions.
What are the benefits of choosing Fairnurse Accountancy?
- Your own dedicated accountant
- Unlimited help and advice
- All returns and filing included
- Easy cloud accounting software
- Deadline Management
- Affordable accountancy services for a fixed monthly fee
Paying tax when self-employed: how much will I pay?
How much tax you’ll pay as a self-employed person will depend on how much money you’ve made and the ‘allowable expenses’ you’ve incurred in the course of your business. Certain business-related expenses can be subtracted from your income when you’re calculating your taxable profit. The tax-free personal allowance and the tax bands are the same for self-employed and employed people, so for 2019-20 you can make up to £12,500 before you need to pay tax. You’ll then pay the basic rate of income tax (20%) on income up to £46,350. The higher rate of 40% applies to income over £46,350, and on income over £150,000 you pay the additional rate of 45%.
How will Fairnurse Accountancy reduce my tax?
Your dedicated accountant will provide recommendations to ensure you never pay more tax than you need too.
Going self-employed but working for a company
Of course, you may be going self-employed part time, and continue working for a company during the rest of the week. This means you’re both self-employed and employed, and you’ll pay tax through both PAYE and self-assessment.
Do I have to submit any paperwork to my Fairnurse Accountant?
Your Fairnurse accountant will have access to your Fairnurse profile which will show your annual earnings and your mileage log. However, if you have paid out on DBS checks, immunisation, indemnity, CPD or any other associated costs, then take a picture of the receipts and email it over to your accountant.
Do I have to sign a contract with Fairnurse Accountancy?
Yes. By signing the contact you are giving your permission for Fairnurse Accountancy to act as your accountant and submit your self assessment on your behalf.
Can I stop the Fairnurse Accountancy service at anytime?
Yes. When you wish to stop, simply cancel the direct debit and let us know.
How do I pay for the Fairnurse Accountancy service?
Setting up a monthly direct debit for £24.99 To find out more about our accountancy services, email us on firstname.lastname@example.org