talkmagic.co.uk

Hi All,

I've found these 2 posts and they refer to "self employment":

http://www.talkmagic.co.uk/ftopic25614.php

http://www.talkmagic.co.uk/ftopic1989.php

I perform close up magic and I've recently been received interest (whilst filming clips for my website - which will be up and running in the next couple of weeks) from a local hotel/restaurant and others about performing at events etc.

I know I need to register with HMRC (tax office), my question from above (as I can't quite make sense of the HMRC website) is if I start performing for money do I need to register as self-employed, as a business or both?

Any help would be greatly appreciated.

Thanks in advance.

No need to register unless you're going to become a ltd company or (I think) earn enough to take you over the VAT threshold (not sure how high that is at the moment). Just remember to fill in a tax return once a year to declare what you've earned from your self employment.

EDIT: Just had a look - VAT threshold seems to be 64k pa. We should be so lucky eh?

themagicwand wrote:Just remember to fill in a tax return once a year to declare what you've earned from your self employment.

Thanks for the info.

64k pa. We should be so lucky eh?

just done a couple of quick calculations, think I'd end up pricing myself out of the market!

you need to do a self assessment tax return every year. You also need to pay national insurance every 3 months (its about £27). If you haven't already, I would also join equity as they can help you with any problems you have, and they also provide your public liability insurance.

I hope this helps

Tony Hyams

Always speak to a few accountants first to get professional advice. Tell each of what you are intending to do and how much you think you will make and appoint one of them to be your accountant (assuming this will be a full time business ?). They can offer invaluable advice on how to do thing tax efficiently (code for saving yourself money !) as well as do your tax return etc.

I used to have an accountant but he used to charge close to a thosand quid a year to do my tax return! I now do it myself on-line. I'm sure I pay too much tax though. But then I'm sure we all think that.

If you shop around you can get an accountant for £500 per year. All kinds of things are tax deductable - subscriptions to magic clubs & organisations, all your tricks, dvds & books, magic conferences including hotel bills, suits you use whilst performing, petrol to gigs, the whole cost of a brand new car if under 110 CO2 emmissions, phone bills etc.

themagicwand wrote:No need to register unless you're going to become a ltd company or (I think) earn enough to take you over the VAT threshold (not sure how high that is at the moment). Just remember to fill in a tax return once a year to declare what you've earned from your self employment.

Sorry, but that's wrong - you must register as self-employed and there's a potential fine if you don't. Have a look here:
http://www.hmrc.gov.uk/selfemployed/iwt ... ployed.htm

I was a Chartered Tax Adviser but gave it up several years ago, largely in disgust at what successive governments have done to the UK tax system. It is now so complicated that even I struggle with my own tax return and I wouldn't attempt it without software. I strongly recommend that you find an accountant, preferably one who is also a CTA - it's dangerously easy to make mistakes and in any case you will save money by claiming all deductions to which you are entitled - pre-trading expenses and capital allowances could easily be missed, for example.

Barry

magicofthemind wrote:
Sorry, but that's wrong - you must register as self-employed and there's a potential fine if you don't. Have a look here:
http://www.hmrc.gov.uk/selfemployed/iwt ... ployed.htm

Barry

Yes you do have to register your business (I'm a sole trader), but you don't have to be V.A.T. registered unless you earn over 64k pa.

magicofthemind wrote:
Sorry, but that's wrong - you must register as self-employed and there's a potential fine if you don't.

Barry

Yikes. Well I pay me taxes every year (well every 6 months actually) like a good boy so I guess I must be registered???

themagicwand wrote:I used to have an accountant but he used to charge close to a thosand quid a year to do my tax return! I now do it myself on-line. I'm sure I pay too much tax though. But then I'm sure we all think that.

A whole grand?

I don't have any expenses worth claiming, so I just stuff what I make into the appropriate box in the online form and that's it.

Tomo wrote:I don't have any expenses worth claiming, so I just stuff what I make into the appropriate box in the online form and that's it.

Me too. Well, I claim petrol (when I remember to get a receipt from the garage!). Didn't realise I can claim back for props. Must remember that!

magicofthemind wrote:Sorry, but that's wrong - you must register as self-employed and there's a potential fine if you don't.

I think MOTM meant you don't need to register as a company, rather than you don't need to register as self-employed (which, as I understand it, you have to register no matter how much you pay?)

But having said that, tax scares me

I assumed DavMac is "trading" as an individual rather than through a limited company. The tax rules for companies are completely different.

Paul -if you're paying your taxes I shouldn't think you have anything to worry about - except perhaps that you should probably be paying Class 2 National Insurance too.......

Tax scares me as well. That's one of the main reasons why I haven't become a professional magician.

Barry

magicofthemind wrote:Paul -if you're paying your taxes I shouldn't think you have anything to worry about - except perhaps that you should probably be paying Class 2 National Insurance too.......



Barry

yeah, pay NI every month too! I really am very good. Ghost and spooks I can deal with. Taxmen are a different kettle of fish. I figure as long as I pay what I'm supposed too I may stave off any dreaded knocks on the door!