Once you have been self employed for a number of years you will have tax returns instead – which the vast majority of finance providers accept. In the interim, AW/your accountants can provide a reference letter outlining your likely income – which is usually sufficient. AW can also introduce you to brokers who specialise in mortgages for professionals, who are more likely to understand the nuances.
Many finance providers will provide leases to members of LLPs (it is less likely they will provide them to people who are self employed because they are sole traders, so the distinction is important).
Your firm will probably have an existing policy on this topic.
As you did under PAYE claiming for miles travelled, parking, train etc. You can claim this from HMRC, however it is likely that you will claim them as expenses via your firm in the normal manner (ie as if you were an employee).
There is a presumption that members work from home (at evenings and weekends) on a fairly regular, but ultimately adhoc, basis. Therefore you can deduct a basic allowance for the cost of heat/light etc. at home of £216 (the current approved HMRC figure). If any members work more routinely than this (i.e. a pre-set day per week) then please contact AW/your accountant to discuss further.
Unlikely, individual partners usually arrange this themselves and your IFA may have already discussed this with you. AW may be able to help with arranging this
This will depend entirely on your members agreement so you should check. The most common answer is that Sick pay/drawings yes, insurance no.
If you are self employed, you will be required to complete a tax return (AW/ your accountant will do this for you) to tell HMRC about your profits and expenses. From this they will calculate your tax, National Insurance and student loan repayments for the year. You will then be asked by HMRC to make your repayments after the end of the tax year.
This will depend on your firm, however even if it is then it is based on estimates so any difference is still due from/to you.
This will also depend on your members agreement. The common answer is only after the year end accounts reconciliation.
Yes, you’ll need to apply online for Tax-Free Childcare if you’re self-employed. The process takes around 20 minutes. You’ll need your National Insurance number and your Unique Taxpayer Reference, along with those of your partner if applicable. Some eligibility applications are settled immediately, but it can take up to seven days. Apply for self-employed Tax-Free Childcare here: https://www.gov.uk/tax-free-childcare.
The tax year runs until 5th April each year with the return due by the 31st of the following January. So if you became a member in July 2022, which is in the tax year to April 2023, the return will be due by the end of January 2024.
They will be in touch with you directly, as each person has slightly different circumstances. However a “normal” list might include:
AW/your accountants will usually request this in the month after the end of the tax year, and start chasing you for it in late summer/early Autumn. In order for them to complete their process and give you time to review it, the information would normally be with them by the end of October in any given year.
In normal years they are due every January and July. The January payment is made up of a payment on account for the year coming, plus any “trueing up” of the previous payments on account that are associated with the return that goes in at the same time. The July payment is simply a payment on account for the year it is in. Therefore, in effect there are three payments – two in January (one in arrears, one in advance and related to separate years) and one in July.
For new members, in your first year you only pay the “truing up” element – so the January following the tax year of your appointment; which could be well over a year from your appointment. However, as there have not been any payments on account this is often a large amount.
These only apply if your financial year end is not 31 March/5 April. Overlap profits occur as the first year of partnership runs over two tax years and so is, in effect, taxed twice. This additional profit is carried forward and offset against your final period profit assessment to tax (i.e. when you leave or retire from the firm, or when the year end changes to 31 March/5 April).
Overlap profit will cease to exist when the basis period reform is introduced (see below).
Currently a partnership can prepare accounts to any date it wishes. Many partnerships choose 31 December. Partners pay tax on the profit share of the accounting period ending in the tax year. From April 2024 a partner will pay tax on the profits arising in a tax year. This means that if accounts are prepared to a date other than 5 April (or by concession 31 March), a partner’s taxable profit will be made up of proportions from two accounting periods. In the future most partnerships are likely to prepare accounts to 31 March each year.