Working out your business costs
Business costs include things like:
- Accountant fees
- Business insurance
- Travel and transport
- Anything that you need to spend money on for your business
Add up these costs and put the total in the income calculator.
You need to make sure all your figures are either weekly, monthly or yearly. For example, you may buy petrol every week but only pay your accountant once a year.
Making sure you are paying the right amount of taxes
- You must save your income tax each month so you can pay your taxes at the end of the year
- Make sure you save money to pay into National Insurance. You do not need to pay any National Insurance (class 2 or class 4) if you are retirement age
- The Tax and NI figures in the calculator are based on information you have given us. They only show a very straightforward illustration
Read our guide to dealing with HMRC debts
Creating a business budget
It helps to:
- Keep home and business budgets separate from each other: To avoid double counting or missing anything
- Check your budget each month: It makes it so much easier to deal with the end of year tax return
- Try to budget for spending that is not regular by breaking up the cost over the year
- Keep a record of all spending, large or small – it all adds up
- Look after the bills you need to pay to keep your business running
- Put money aside to cover tax or national insurance:
- Stay on top of things like energy and council tax payments
- Use your budget if you need professional support or start debt advice