Financial Issues

Value added tax (VAT)

Value added tax (VAT) is chargeable on a range of goods and services. You do not need to register for VAT unless your turnover meets or exceeds the registration limit, at the time of writing £60,000. However, if you know you will be paying out VAT on materials purchased it is worth considering registering for VAT even if your turnover is less than £60,000. For information and advice on current VAT registration limits and how to register for VAT contact the

HM Customs and Excise National Advice Service on 0845 0109 000.

Inland Revenue

The taxation of your business profits depends on its trading status, but you must tell the Inland Revenue when you have started to trade. Advice on personal and employee taxation (PAYE) can be obtained from the Inland Revenue or your professional adviser.

National Insurance Contributions (NIC)

All self-employed people must register for National Insurance Contributions (NIC). Employers are also responsible for paying NIC for employees. For further details contact the Inland Revenue's National Insurance Contributions Office.