DavidBarry(lford)AccountantsTaxadvisers - self employed 10 April 2010

Self Employed 10 April 2010

Email Out: 09 April 2010

We agreed that the best business structure for you was as self-employed. Please go online at http://www.hmrc.gov.uk/selfemployed/register-selfemp.htm before the end of the three month period in order to avoid a £100 penalty which is the law. (The class 11 stamp is about £10 per month and qualifies you for the minimum state pension-not as good as that payable under class 1 - but nevertheless useful at retirement.

Alternatively you can register at the telephone (as your accountant I am still not permitted by law to complete this task on your behalf) as follows:

"In most cases you can also register as self-employed by calling the Newly Self-employed Helpline on 0845 915 4515. Lines are open from 8.00am to 8.00pm Monday to Friday and 8.00am to 4.00pm Saturday and Sunday (closed Bank Holidays). The information that you need is you’ll still need all of the information mentioned above to hand.

The information that you need is:

* Full name

* Full home address

* National Insurance Number

* Date of birth

* Contact telephone number

* Contact email address

* The date your self-employment commenced (this is the date of the first night's takings of the club)

* The nature of your business

* Your business address

* Your business telephone number

* Unique Taxpayer Reference (UTR) if you were previously within Self Assessment

* The business's UTR if you are joining an existing partnership

* Where relevant, the full name(s) and date(s) of birth of your business partner(s)

In this business you do not have a UTR number (unique tax reference number) and so one will be generated and once received you must email me with the number (there are ten digits to it) so that I can input the details into HM Revenue and Customs website and so act as your agent.

Much of your initial spend is classed as plant of the business and so qualify for various relief’s as detailed in my previous emails.

At some stage in the future we can bring your partner into the business (presently can be written into an employment contract as wages at the minimum wage if this helps) and then as a partner at the time that the business generates profits or instead incorporate the business as a limited company.

VAT

We agreed at interview to register the business for vat. However in order for me to complete this task on your behalf I must have written instructions (an email with accompanying signature and dated will suffice) from you (verbal instructions are not sufficient) and it follows that this date must be the same date (and must follow in chronological order) what you give for the commencement of the trade as detailed above.

To sum up: first register as self-employed and then give me written instructions to register the business for vat acting only on your written instructions.

You will soon receive your P60 2009 from your employment and you should carefully save this together with your last 6 months payslips.

Please remember that for the purposes of VAT at the time I prepare your vat returns I must have all original purchase invoices as I must stamp these and is the only way in which I can reclaim input vat of the business.

Carefully keep all the till rolls (being your sales invoices) of the business and enter these daily into a book that is divided into days of the week.

Prepare weekly totals as well.

I telephoned my client but he is presently otherwise engaged and so apologise for wasting your time in this matter. I wait to hear from you.