When you are running your own business, much of what you do comes down to money. Whilst it can sound great to be in charge of your own income and success, there is quite a lot to keep in mind to ensure you actually get to where you want to be. Whether it is to do with tax, expenses or even advertising costs, you will have to think about all of these components in the coming months and years.So sit back and read this blog post so you can find out what you will need to remember – it might help if you jot down a few notes. There are other resources online that you might find helpful, so consider having a further look by using the search engines.
Tax return (self-assessment)
There are some dates in the calendar that will be very important for you to remember when you are working as a freelancer. That is because you will need to fill out a tax return, known as a self-assessment. This can be done online, making it more straightforward than it used to be when it was all completed by paper forms. However you must allow plenty of time to get the process up and running as you may need to register to use the service through the Government Gateway. As an activation code will be sent through the post, you should ensure to take this step well ahead of when you actually need to fill in your tax return.
Calculation of expenses
Within a tax return, there are certain sections that you might want to fill out – one such option is that of expenses. Each freelancer will have different circumstances, but it could apply to you that you can claim back for travel and a portion of your household bills if you work from home. If you are unclear about what exactly you can claim for, you can check online at gov.uk or even seek the professional services of an accountant for extra support.
There are some expenses that can accumulate to quite a high amount before you are reimbursed, so you should make sure that you can afford to pay them up front. One of these forms of expenditure is that of advertising, something which can take many forms depending on your preference. There is everything from newspaper and magazine inserts all the way to paying for ads on social media networks such as LinkedIn. Of course, advertising is likely going to be essential for you in order to generate new business so try and work out a budget in advance so you know what to allocate and to where.
Finally, have a think about what other costs you already occur or might do in the future. This can involve everything from insurance needs to renting an office space. Ultimately you may find that your costs increase in line with your long term goals, but this shouldn’t be a problem assuming you are generating more profit.