UK Indie Hackers, taxes and financial question

Also remember that no one really cares what you do until you are actually earning a reasonable amount of £££, at which point you'll be able to afford an accountant who can advise you. Just jump in and start swimming. Keep records of every outgoing in incoming £. Sole trader is much easier and more tax efficient if your gross profits are below 35k pa

Always have an accountant. They are not that expensive and will save you a fortune in tax because tax is complex and you don't have time to be an expert on it.

• Always have a separate bank account
• Being a Ltd company costs £20 but I would say requires an accountant.
• I would highly recommend getting an accountant however. My first year of trading I owed HMRC over £2000, I hired an accountant who advised me to pay a £100 fine and then I would owe nothing. They have more than paid for themselves on the following years.
• I would also recommend some accounts software. I LOVE FreeAgent as they are a UK company that have integration with all the UK services. Over the years we have integrated FreeAgent (which includes GoCardless) into our offerings so everything is auditable and you can see exactly where your money is coming and going.
• Don't forget your expenses too. Taking a trip somewhere for work, mileage claim, it's a great way of getting money out the business without paying tax :-)
• If you want to help a brother out then please use my referral code for FreeAgent and we'll both get 10% off - http://fre.ag/3flvybs4 - (No requirement to use this though)

Setting up and running an UK LTD is pretty cheap and easy and as long as you are below a certain revenue level you only need to present simple taxes which a chartered accountant can prepare for you without too much expense.

I would def recommend having a separate bank account for all business related transactions and keep track of everything in something like QuickBooks.

I personally don't like quickbooks but it has everything my accountant needs to submit my taxes quickly which means she doesn't charge me very much :)

The whole setup costs be about 50 pounds a month including Quickbooks.

Looking at this I assume you are a Self-Employed/Sole-Trader rather than a Company (Ltd, LLC).

Do you have a separate bank account for each, are they all through a single account or are they all through your personal account? If it is the latter I would recommend opening a new account so that you can separate these from your personal income and expenses.

I have linked up my account to WaveApps (https://www.waveapps.com/) as they are free and can track the income, expenditure and anything else needed for trading. Also with accounting software you can then provide Accountants read-only access if you require assistance with Self-Assessment Tax or any other tax you may incur.

This comment was deleted 7 years ago