Well, if you’re getting paid for work on a monthly basis, there’s probably very little difference. But, if you agree to and invoice someone for work several months before you get paid, it can change the year you pay tax on that income. You’ll need to keep track of what you’re charging customers for your goods and services, as well as any business-related expenses.
If you’re running your own business, it’s important to make sure you’re insured. However, you can claim back VAT you pay for goods or services relating to your business. If your business has a taxable turnover of £85,000 or more, you will need to register for VAT. But some businesses might benefit from registering, even with a turnover below this. Regardless of who you’re presenting it to, it’s important to be realistic and honest about your costs and earning potential.
For example, if your business will … Read More