UK photographers........busine​ss question

Did you register yourself as a business when you first started up and were not earning money from your photography? Or did you register when money started trickling in?

I am earning very little at the moment, hence the need for a full time job to go with my mainly concert photography

Your best bet is to have a chat with an accountant. I did and he gave some good advice. If you do start trading as a business, then you are supposed to register your company within your first three months. However, if you already have a full-time job it might not be worth your while at the moment especially if you're making little. I was in the same situation, and was advised at the time not to trade as a business. The reason being that I would be earning nowhere near as much as I would be claiming against my equipment, travel, expenses etc. Therefore, as I was paying tax through my full-time job, I would be getting a decent pay-back from the Inland Revenue from the tax I'd already paid. And they don't like that! Accountant's argument being the tax man would be better off, at that time, by me not claiming. If I did it could be seen that I was deliberately not making much money through my photography business so as I could claim against all my expenses and end up getting a tax refund.

Hope that makes some sort of sense!

Talk to an accountant though. Yours may take a different approach.

David

Well this seems like the situation I am in actually, and I know quite a lot about the tax system because I used to be self employed and I have phoned the hmrc

RichSoansPhotos wrote in post #17133380
Did you register yourself as a business when you first started up and were not earning money from your photography? Or did you register when money started trickling in?

I am earning very little at the moment, hence the need for a full time job to go with my mainly concert photography

There is no registration process other than for TAX as a sole trader. You just tell the Tax office that you are now running a business and they'll send you the tax returns to fill in when needed.

If you are gong to register for VAT, then it makes a bigger difference. When I was last registered for VAT it was possible to claim VAT back on purchases, I believe, for the year previous to the official company start date. So keep all of your receipts for the year prior to your official start date.

I suggest you have a chat with a good accountant. An introductory chat is free, so you have nothing to lose.

SuffolkGal wrote in post #17134094
There is no registration process other than for TAX as a sole trader. You just tell the Tax office that you are now running a business and they'll send you the tax returns to fill in when needed.

If you are gong to register for VAT, then it makes a bigger difference. When I was last registered for VAT it was possible to claim VAT back on purchases, I believe, for the year previous to the official company start date. So keep all of your receipts for the year prior to your official start date.

I suggest you have a chat with a good accountant. An introductory chat is free, so you have nothing to lose.

You don't have to be VAT registered for that.. A sole trader can also claim, as long as they've earnt enough. Like SuffolkGal said though, best to chat to an accountant. If you're getting paid in cash, I'd keep my mouth shut, but if you're getting cheques etc, best to register as self employed.

If you do register make sure you also apply for NI exemption if you're going to be earning less than the £6k odd threshold.

I did it the day I put my website live. Like you I have money trickling in but it's easier to manage books and stuff when it's like that, hopefully prepare me for when more starts coming in.

sancho1983 wrote in post #17139967
If you do register make sure you also apply for NI exemption if you're going to be earning less than the £6k odd threshold.

I did it the day I put my website live. Like you I have money trickling in but it's easier to manage books and stuff when it's like that, hopefully prepare me for when more starts coming in.

oops, I've got a website, should I have done so at that time?

No, not necessarily, just when I chose to do it

RichSoansPhotos wrote in post #17140325
oops, I've got a website, should I have done so at that time?

You don't have to register until your first paid job comes in, if I remember correctly...

beano wrote in post #17140384
You don't have to register until your first paid job comes in, if I remember correctly...

You don't remember correctly. Sorry

Gary_Evans wrote in post #17140651
You don't remember correctly. Sorry

So, enlighten us.

Gary_Evans wrote in post #17140651
You don't remember correctly. Sorry

And the point of your reply is?

It is /was my understanding that you need to register with HMRC within 3 months of setting/starting to trade.............this is so speak the date from which you intend to trade not that date at which you first got/get paid. Also that you can bring items into the business from before that date such as (some/all) camera gear itself and materials such as print costs, mount & framing materials.

In regard to David's (beegeeboy) post the HMRC is I surmise canny to the fact of expensive gear being brought in to the business as tax "wheeze" so surely there needs to be shown some trading if only modest and you can declare a % usage of the gear applicable to the business i.e. not all work and no play.

If in any doubt consult an accountant and HMRC themselves.

Box Brownie wrote in post #17141655
It is /was my understanding that you need to register with HMRC within 3 months of setting/starting to trade.............this is so speak the date from which you intend to trade not that date at which you first got/get paid. Also that you can bring items into the business from before that date such as (some/all) camera gear itself and materials such as print costs, mount & framing materials.

In regard to David's (beegeeboy) post the HMRC is I surmise canny to the fact of expensive gear being brought in to the business as tax "wheeze" so surely there needs to be shown some trading if only modest and you can declare a % usage of the gear applicable to the business i.e. not all work and no play.

If in any doubt consult an accountant and HMRC themselves.

Yep. I wasn't talking about the money coming in. I was talking about the job coming in. About 5 years ago, when I registered as self employed, I was told I could register when I booked my first paid job in.

beano wrote in post #17140957
So, enlighten us.

???

The answers are already in the thread above mine. Why do I need to repeat it?

I only posted when someone gave an incorrect piece of info coupled with the comment "if I remember correctly".

I'm not here to hand hold anyone, you want proper advice get it from professionals in that field.