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This Crafty Business ~ A Taxing Business!

17 Jan

Maeri surprised me today with a new post for the ‘This Crafty Business’ Section.  Touching on a subject that is probably at the forefront of a lot of people’s minds at the moment who run their own business…. 

Taxes – and other topics sure to kill a conversation!

This is just a very quick submission as I am staring at twelve little piles.

They start April 2010 and end March 2011. Some are so high that every time my four-year old opens the door, they scatter across the table. Some barely register on the pile-o-meter but each month has to be given its due.

They have been taunting me now for about two weeks, as the twelve little piles really should have been one big pile by now. And once they are one pile, they are to be submitted under the name “taxes” using the lovely Inland Revenue’s on-line system. And this is where I feel, based on my experience last year using the on-line system, I wanted to have a word in your ear.

If you want to submit your taxes using this system, don’t do what I did last year!  I thought you could just sign up on-line and submit all in one go. Get my twelve little piles ready to go and then I just need to put them in the “money in, money out” columns and tick – done! That is what the advertising made it sound like – or maybe it was what I wanted to hear? So I waited until very close to the submission date and found out that that was not the case.

If you want to submit your taxes electronically for the first time, you need a week between when you set up your account and when you can submit them.  Why?  The Inland Revenue, based on the information that you set up your account with, will send you via snail mail, a number that they require you to use to finish setting up your account.  Once this is received you can finish your setup, submit all the information and then you are done!

So if you haven’t set up your online account, do it NOW and you will get the number from the Inland Revenue in plenty of time for the last submission date.

Now another question asked by a fellow small business owner about returning taxes that I thought I would just touch on. She has only set up her business about eight months ago and due to set up costs she has not made a profit. As a matter of fact, she has a little minus in that column that we all hope one day will have a big fat plus in it.  She asked, a bit tongue in cheek, why do I have to submit when I know I am not going to pay anything towards the Royal Yacht?

Because it helps YOU see where you are up to with your development plan.

Remember we touched on this in the last post?  About where you want to be and visualising it?  Part of that process of fruition is understanding where you are spending your money, where it is coming in from and seeing if either one of these is getting in the way of you achieving what you want.  It may not be very detailed this year – you too may be in your first year of developing your little business like my friend– or you may be a few years down the line.  But it is a snapshot worth looking at.

OK piles of twelve – I am armed and ready to tackle you.

After one more cup of coffee…..

Maeri

www.themakeanddostudio.co.uk

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1 Comment

Posted by on January 17, 2012 in This Crafty Business

 

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One response to “This Crafty Business ~ A Taxing Business!

  1. Diane

    January 31, 2012 at 10:58 am

    This is definitely one area which stops me even considering a business; although truth be told, there’s probably the slight issue of what area I would choose to create a business around too. I shouldn’t let that stop me though as creating barriers to progress isn’t productive. Creative people don’t like official tax business but it’s unavoidable.
    Your point Maeri about purely doing the tax return to keep an eye on your development, is a very valid one as I know for a fact that I wouldn’t earn over the tax threshhold but as and when I build up a business plan, I’ll definitely bare that advice in mind.
    The paperwork side of running a creative based business is definitely worth more attention on this site, although I know that you already have advice on things such as public liability insurance.

     

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