Monthly or End of Year?

[cbshoat]

Hi
I'm new and just want to get my head roung all things account related :-/

Please correct me if I am wrong but we take all our monthly earnings, take back any expenses we have incurred directly (tax free) then on the remaining amount pay out any tax/national insurance due.

The amount left would then be our to keep also yes?

So do we subtract the amounts for heating/lighting etc etc from each monthly bill or just claim this at the end of the tax year????

Sorry for being annoying but I really do think I'm just confusing myself with it all!!!

Christine

[rosebud]

It doesn't matter how you do it as long as it reflects the hours you work. I do mine termly (just to confuse you more) I work out how many weeks I worked and the average number of hours per week and use this as the basis for heating/lighting, water & council tax. I do it this way because the number of hours I work can vary significantly over the year and I also don't like to get too far behind. I don't take monthly earnings as such - all the money that comes in is mine and expenses are incurred as we go along but I do make sure I put a little aside in a separate account for tax. National insurance I pay monthly by direct debit and is a set amount. (class 2)

Its not as hard as it appears at the beginning, stick with it and you'll soon get the hang of it.

[cbshoat]

Thanks. Can I just ask, if we put all our start up costs on the first month/week, what happens if the expenditure outways what we have earned?
(does that make sense?)
Christine

[sarah707]

Thanks. Can I just ask, if we put all our start up costs on the first month/week, what happens if the expenditure outways what we have earned?
(does that make sense?)
Christine

You make a loss - which is not unusual in the first year of business :D