Business Basics: Finance
The course handouts for your Business Launchpad workshop can be downloaded below.
You can also download this handy page with some key business jargon:
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Tax latest:
NB: We'll update this after the budget on 15 March 2023.
- Class 2 NI contributions are £3.15 per week for 2022-23. (£3.05 per week, 2021-22)
- Class 4 NI is back down to 9% (U-turn announced in Sept 2022). The planned Health and Social Care Levy has now been abolished.
- The personal allowance (i.e. free of income tax and NI) is £12,570
- The higher income tax rate of 40% kicks in after £50,270 (2022-23) for England, Wales and NI. The income tax bands for residents of Scotland are now very different. Check help sheet 3s.
- VAT threshold is £85,000 from 1 April 2017. So you have to be VAT registered if your turnover in any 12 months hits that level. This threshold has been frozen until at least 2023.
- The Annual Investment Allowance (to buy kit and machinery) is £1m per year.
- Corporation Tax is 19% for all Limited Company profits.
Contacting HMRC
- Income tax enquiries (opens in new window)
- All HMRC support (opens in new window)
Places to find support if you're a new business:
- Benefits and local business support - business mentor etc through JobCentre Plus
- Prince's Trust - aimed mainly at 18-30 year olds
NB: The New Enterprise Allowance was closed in 2022.
Useful sites to deal with late payers
- www.payontime.co.uk includes an interest calculator
- www.gov.uk info about the legislation
Late Payment Legislation was introduced in the UK in 1998 and across all EU countries from March 2013.
Also check out our video explainers, showing you how to take control of your freelance finances: Free Stuff page >
Help sheet 1 - Splitting the personal from the business >
NEWHelp sheet 1sp - Savings and Pensions
Help sheet 2 - Types of business >
NEWHelp sheet 2f - Defining production freelancer status >
Help sheet 3 - Tax and National Insurance >
Help sheet 4 - Paperwork, record keeping and digital tax >
Help sheet 5 - VAT >
Help sheet 6 - VAT - Flat rate scheme for small businesses >
Help sheet 8 - Accountants (what they do and what to ask them) >
Help sheet 9 - Some practicalities, including an insurance checklist >
Help sheet 10 - Business plans >
Help sheet 11 - Polishing your image >
Help sheet - Balance sheets for limited companies >
For Microsoft Office (Excel and Word) users...
If you need these templates in other formats, please email us at: training@davidthomasmedia.com
Download all MS Office templates together (Zip file)
Or individually:
Budgeting sheets to control spending
Spreadsheet - for personal (not business) spending
NEWSpreadsheet - Monthly budgeting sheet for freelancers
Cash flow planners
Spreadsheet - Cash flow for sole trader/Ltd
Spreadsheet - Cash flow planner incl. household and PAYE income
Business income record sheets
for Sole Traders, Partnerships, or Ltd Companies
Spreadsheet - Income and Expense (Profit and Loss) account for businesses
UPDATEDSpreadsheet - Pay Slip record for PAYE freelancers
Getting paid properly
Template 7 - Invoice. (Or here for a pdf example with notes.)
Handout 13 - Blank project proposal form
- with notes
For media freelancers (including payroll freelancers)Simple "Confirmation of Booking" letter - downloads Word doc in new window
For Apple format (Numbers and Pages) users...
Download all Apple format templates together (Zip file)
Or individually:
Budgeting sheets to control spending
Spreadsheet - Personal (non-business) spending
NEWSpreadsheet - Monthly budgeting sheet for freelancers
Cash flow planning sheets
Spreadsheet - Cash flow planning for sole trader/Ltd Company
Spreadsheet - Freelancer cash flow planner with household costs
Business income record sheets
Spreadsheet - Income & Expense (Profit & Loss)
UPDATEDSpreadsheet - Pay slip record for PAYE freelancers
Getting paid
Invoice template
We often meet trainees who are working in the UK but have moved to the UK from another country.
To check how much tax you might have to pay, have a look at the guidance on the HMRC website. Specifically, it's worth looking at the definitions of:
VAT registered, and selling overseas?
If you're VAT registered in the UK you need to be sure whether or not to account for VAT yourself, or whether your client has to account for it.
The rules vary, broadly based on
- whether the client is based within the EU or not
- whether they are VAT registered in their own country or not
This is not the place to go into detail - especially as we don't yet know what will happen with Brexit - but you can find out more on GOV.uk: HMRC - VAT and Supply of Services
You may well need professional advice from an accountant who is used to working with international clients.
Please note:
Although every effort has been made to provide accurate tips and information, David Thomas Media Ltd accepts no responsibility for any errors, omissions or out-of-date facts. Trainees are advised to seek up-to-date professional advice on all financial and tax matters before making decisions relating to these subjects. Nothing in our notes, courses, webinars, downloads or social media should be considered as financial advice.
We believe our tips are useful - but they are only tips!
