Hi All,
I may be in a situation where I will be setting myself up as a sole trader,
the company I I am working as an employee for on contract (contract ends dec) have asked If i would like to continue on as a self employed contractor for a number of months next year- the reason is that there is a hiring freeze in the company (multinational), this will most likely change next year and when it does I will become a permanent employee. If i do go ahead with this i will obviously engage the services of an accountant but in order to start things ticking over on my mind I have a few questions:
I appreciate any input you may have,
Mark
I may be in a situation where I will be setting myself up as a sole trader,
the company I I am working as an employee for on contract (contract ends dec) have asked If i would like to continue on as a self employed contractor for a number of months next year- the reason is that there is a hiring freeze in the company (multinational), this will most likely change next year and when it does I will become a permanent employee. If i do go ahead with this i will obviously engage the services of an accountant but in order to start things ticking over on my mind I have a few questions:
- Because I will only be working for one company would revenue have a 'difficulty' with my sole trader status?
- From an expense deduction would it be acceptable to claim 75% of incurred car costs- petrol/services/tax/insurance etc- this would be a true reflection on how much I use my car for my 'business'
- What other legitamate expenses could I deduct for tax purposes?
- The company I will be working for are a VAT exempt company. Given that my income would be over the VAT exemption threshold do I still have to charge VAT/how does this work
- When working out the tax on my salary- ie what left over after all legitimate expenses/pension contributions etc are taken out. what level of tax will i pay/waht tax credits do i get?- would i be correct in saying that i would deduct 1650 tax credit from the salary and the remainder would be taxed as normal - ie 20//41% prsi 4%- what standard rate cut off points are there etc?
I appreciate any input you may have,
Mark