Advice for budding cooks on running their own business
Everyone who takes up a self-employed earnings opportunity with WeFiFo is starting their own business. For this reason you/they should keep and maintain proper records of their business because, at some stage, you/they may become liable for income tax and this will be your personal responsibility.
Registering as a new business with HMRC is quite straightforward. The easiest way is to go to their website (https://www.gov.uk/new-business-register-for-tax) and complete the required information. There will be a number of questions for you to complete to get registered with HMRC. There are a lot of useful guides on their website to help you with this process.
After this you will be required to complete an annual tax return where you will have to declare your income from WeFiFo less the expenses you incurred (as well as any other taxable income). If completing a paper tax return this needs to be submitted to HMRC by 31st October following the end of the tax year. HMRC are encouraging online tax returns and if you choose this option then the deadline is 31st January, 3 months later, following the end of the tax year.
Being self-employed and working from home will result in you incurring costs that you can claim against the money you make hosting an event. Examples of costs you may likely incur and can claim as allowable expenses are:
To put it another way, there are many allowable costs to claim against business income. In your first year or so as you are building your customer base these expenses can often exceed your income. Where your costs exceed your income you will make a loss. This loss can be used against future profits of your business and this is another good reason why it is important to keep records and complete an annual tax return. You don’t want to pay tax too soon when you are growing your business.
The plates have been cleared, the oven switched off, the washing up has been put away… so how did it go?
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