My gardening business is going so well, I’ve decided that it’s time to look for a new van. Over the past few months I’ve scoured the Internet trying to decide what make, model and type, and have chosen either the Ford Transit Connect 220 LWB, or the Ford Transit 260 SWB. Both are good vans, cheap to run, and ideal for the job. If I go for the smaller Connect, then I’ll need to get a cage trailer to clear the gardening waste, whereas the much larger van will easily accommodate it. However, driving the larger van will mean lower economy, as I won’t always need the extra capacity.

Decisions, decisions, decisions . . .

Ford Transit 260 SWB

Ford Transit Connect 220 LWB

It’s becoming daily ritual to look through the ubiquitous Auto Trader website looking for the best deals, and I must say it’s an exciting time. I’m hoping that the deal will be done by the end of April, so I can get the van sign-written ready for the busy spring and summer months. And here’s a picture of what the van will look like.

I’ve had a week of amazing gardening bargains. I need a new chainsaw, so I reserved one at B&Q online for £130 and duly went to collect it. However, upon arrival I could see that the chainsaw had been displayed in the wrong place and was being advertised for £99. And then it turned out that the model on display was the only one available, so B&Q gave me 20% discount because it had no box. So my chainsaw only cost me £80 and not £130!

My next saving was at Homebase, where I brought 2 x 5l bottles of Round Up and 2 x 5l bottles of Lawn seed and feed. The Roundup should cost £18.99 and had the wrong label on displayed £10.49! And the Lawn feed should cost £9.99 and was being advertised incorrectly for £6.99. So what should have cost me nearly £58, only cost me £35.

And that’s the best part of £73 of savings this week.

I earn more.

When I worked for Barclays Bank my earnings were limited, the company tells me what I was worth and what they will pay me. When I became self-employed, I chose how much I am worth. My earnings are not capped, and there is no limit as long as I can find work and come up with new ideas.

I work my own hours.

For me the 9 to 5, Monday to Friday didn’t work. It was ok up until the point I started a family. Now if I need to take the kids to school I can simply start later, or get up earlier. If I feel like I need a lay in then I have one. If I need a day off I take one.

Tax is under my control.

I can use my tax money before I have to give it to the government. There is nothing stopping me from putting my tax money away in a high earning account until the tax man asks for it. Making sure I am getting the most from it.

I create my own environment.

I remember being in an office job, having a chair and desk, and being stuck within four walls, not always with people I liked. Now I work for myself, I decide what I sit on. If it is a nice day then I can even move my office to the garden and soak up some sun.

Less stress.

This is the top benefit in my eyes. Yes I have periods of stress and high activity, but I’m no longer in the centre of someone else’s stress. I remember those days sitting in an office with a bad tempered boss, and coming out feeling drained at the end of the day. I can relax and sleep better than ever before since taking the plunge.

But the most important thing is . . . I’m happy

Tax for the self-employed

This is the first time I’ve worked for myself. . . and when you become self-employed you’ll need to know what taxes to pay and when, here’s explains the basics. If you were previously an employee, you probably didn’t have to think about income tax and National Insurance, let alone care. The payroll department deducted them automatically from your gross earnings and you netted the balance. Now that you work for yourself, obviously, you are responsible for sorting out your National Insurance and income tax. It’s simple enough.

What tax do I pay as a self-employed person?
Income tax and two types of National Insurance to HMRC [Her Majesty’s Revenue & Customs]. You will pay Class 2 National Insurance contributions (NICs), which are set at a small fixed amount per week, as well as Class 4 National Insurance contributions, which are based on your business profits at the year end.

When is tax payment due?
As a self-employed person, you will pay your tax on the 31 January following the end of your tax year. However, HMRC will ask for payments on account for the following year’s estimated tax – on 31 January and 31 July each year. Therefore, after your first year, your tax bill may actually be 150 per cent of the amount you were expecting, with a further 50 per cent due in July.

Sounds like I need to put some money away each month?
That’s a wise idea. It’s important to provide for these liabilities to ensure that interest charges and late payment penalties do not arise, which can significantly increase your liability. By putting away some money from your earnings each month, say, 25 per cent of your gross earnings, you should have enough money in the bank to take care of your tax bills.

Why do I need to pay my tax bills on time?
It means you will avoid needlessly having to pay penalty charges. As well as failing to complete your returns on time, you can be fined £100 for failing to register your business within three months of starting up. It’s best to register as soon as you can – it’s such an easy process.

What do people fail to realise when they become self-employed?
The importance of selling would come high up the list. When you work for yourself, you have to be able to make sales – no matter what you do – or the business simply won’t survive, no matter how good you are at other things. You also must take care of your own bookkeeping, which can come as a bit of a shock – or pay someone else to do it. You may have to spend a significant amount of your time doing things you haven’t done before or doing things you don’t like. These can take up a lot of time.

But doing my own finances saves me money…
Well, possibly… But with certain tasks, if you work out the number of hours you spend doing them each week at the rate you could earn by doing something else, including making sales, you could find you would be better off outsourcing, providing your business can afford to do so, of course. That includes getting an accountant to look after your tax returns, even if you decide to do your own basic bookkeeping. Money you spend on an accountant’s services can be claimed as a business expense, of course. You can even save some money by taking care of basic record keeping, and then get an accountant to do your returns or company accounts.