Can you please advise as a general idea, the annual costs of a sole trader before any income as such? i.e. Running van, replacing tools, calibration, stationary, advertising, accountancy, mobile phone etc? Cheers
you are probably talking about an initial outlay of £2000 for your tools alone (including test instruments) and everything else probably comes out at about £4000 to £6000 depending on how much you advertise but this is per year so a total of 6k to 8k for your first year m.elec
i use a p reg van and it brings your outgoings right down. advertising is a big expense so if you can get passed that stage you are laughing(book another holiday).i run my busines with about £6000. and i love my tools and 2 mobiles and accountant so i dont scrimp.
No, but if you by a £1000 Diesel Estate car and get by on the minimum of tools plus a minimum £1000 of test kit to get going and ignore all the unpaid time you will spend in the evenings and Sunday's doing paperwork and quotes etc you can massage the figure way lower. It's all down to accountancy! Anyway 10-15K is not too bad if you turnover 50K?
If its any help ......last year with motor expenses,telephone,postage,bank charges,cleaning,accountant was £8000 which doesnt include van repairs of replacement of tools
you are probably talking about an initial outlay of £2000 for your tools alone (including test instruments) and everything else probably comes out at about £4000 to £6000 depending on how much you advertise but this is per year so a total of 6k to 8k for your first year m.elec obviously thats not what you tell the accountant then its more like £10,000 to £12,000
it also works out better if you use your own car and then charge the business a per mile charge which can be 45 p per mile upto 10,000 miles then 25 p per mile after that eg last year 10,000 miles x 45p =£4500 9000 miles x 25p = £2250 so in other words £6750 tax free and it costs about 2k to run and service the car for the year
Cheers chaps. Have already got tools and test equipment, so was more after getting an idea of recurring annual costs once up an running. Ignoring the initial cost of a van, I get the general idea that this would be about 6K. It's going to take a fair bit of convincing the Wife that I can drop my job of 40K with a car one day! I wonder if the papers take these costs into consideration when they say sparks are earning 70K?
I wonder if the papers take these costs into consideration when they say sparks are earning 70K? It is easy to understand how these stories come about. Journalist' neighbour wakes up one day to find that the downlighters recently fitted to his/her fancy kitchen won't work. Neighbour calls in spark, who changes a GU10 and resets the MCB and charges £25 for 30mins work. On hearing this tale the journalist is outraged - £25 to change an effin bulb. Gets out calculator and works out the spark must be on at least £70k a year. Journalist then writes lifesyle piece an sticks it in the paper based on this experience. Wonderful isn't it! To quote Scott Adams (creator of Dilbert) "Reporters are faced with the daily choice of painstakingly researching stories or writing whatever people tell them. Both approaches pay the same.