Are we being ripped off? My 2020 wish list for self employment...

[@orbitalforest]

This is reassuring seeing this video as i'm literally starting this week self employed after working for a firm for 20 years as a painter and i have long term work already sorted. Cheers.👍

[@GosforthHandyman]

Wow - fantastic stuff. Best of luck! 👍👊

[@Jim_Newlands]

What brilliant content you have on your channel, mate. These small business vlogs are a real shot in the arm and give one man band operations like myself who is constantly spinning a dozen plates the confidence to know we are not "overcharging" for working our nuts off and producing a damned good end product that we can be proud of. Keep up the good work, and I hope everyone has a successful year.👍

[@GosforthHandyman]

Cheers Jim! All the best to you too! 👍👊

[@markjarman7819]

A man of very wise words to the trades and to the public. Great video this. 👍

[@michaelburton9638]

Happy new year Andy, beautiful introduction to this video

[@Ssssshhhhh1885]

Absolutely fantastic Andy. Really interesting. I'm PAYA and have been my whole life. I'm walking the fence with starting a small business for days off and seeing what happens... this def inspires me to push forward. Thank you bud. 👍👍👍

[@bchgardenservices]

So glad I landed on your channel. What a well thought out fair and properly researched video. Thank you so much for the effort you have put into this- It has fairly cheered me up. The single biggest problem I currently have in my business is competing against the 'cash in hand squad' . It effectively gives customers locally such an unrealistic price expectation. Earned my subscription.

[@GosforthHandyman]

Yeah - I wish customers would get over the whole cash in hand thing. Trades people need to understand that they're putting themselves at significant risk for customers who almost certainly can afford to pay the going rate. Best of luck! 👍👊

[@jb-sz2kw]

Great video and extremely enlightening for most people (trades and customers). I'm a Chartered Accountant and have worked in industry and have been self-employed. The tax system in the UK is far from perfect (and I agree totally with your point on MTD, what a mess the government is making of this...what they should have done is kept the old system but asked for monthly updates instead of quarterly and it would make things a lot easier for everybody). Anyway, looking at the various responses you've had from around the world make it very clear that the UK is still a great place to work and live and that we really don't have it bad at all.

[@jimbob6290]

In Hungary a sole trader can choose to work under "KATA" where you pay a fix £1600ish/year and you can invoice customers up to £31k-£32k/year. That £1600 is your tax and NI

[@felixreali7101]

Andy, this is the best video you've ever put out. I've been saying this for years. People are less and less inclined to pay "fair" rates for goods and services. And it's so detrimental to our economies. It's the same with food. Food has become so cheap, they're practically throwing it at us. And what's the end result? A huge loss in quality and an enormous amount of waste. When I choose a tradesman for a job, I go by references and quality. If it's a little more expensive, in the end, it's worth it.

[@karlpopewoodcraft]

Excellent advice and information Andy thank you. I'm learning so much everyday. 😊

[@GosforthHandyman]

No worries - all the best! 👍

[@mikeparsonscc]

Happy New Year Andy. You are tipping my internal scales - this year might have to be the year to make the leap 🤞 Good luck when the house hunt resumes 👍

[@GosforthHandyman]

Thank you and best of luck! Never been a better time! 😀👍

[@papupapu6027]

Country india

[@restore1012]

Great video ! I’m looking to take the leap this year and this has given me a good heads up and a huge boost. 👍🏻👍🏻

[@GosforthHandyman]

Fantastic - best of luck with your business! 👍👊

[@pda49184]

Great stuff Andy.. Nice to hear the optimistic outlook for the future of small business here in the UK .. Happy new year ..👍🏻

[@GosforthHandyman]

Cheers Pete! Exciting times! 👍😀

[@bigmonkey999888]

Hi, Andy happy new year to you. Glad to hear normal service resumed next week as I look forward to your video’s Steve

[@GosforthHandyman]

Happy new year to you too Steve! 👍

[@mrbrick5428]

In the uk we pay 20% tax for a sole trader

[@stevebosun7410]

Hi Andy, some excellent advice as usual, but more to the point, some inspirational advice. Thank you. I wish I could have seen this years ago!

[@GosforthHandyman]

Cheers Steve and all the best! 👍👊

[@bentullett6068]

I totally agree with your opinion on customers who want a cheaper deal cash in hand or as I get off the older generation senior discount. It doesn't help a business progress and it only gives the customer one option of trader which usually are featured on a well known TV programme. As the moto goes buy cheap pay twice.

[@hughtattersall7583]

Nice one Andy, remember VAT is only an additional cost to the private individual, if you are charging a VAT registered business, is just part of the merry-go-round, Happy New Year.

[@Robert-cu9bm]

Hugh Tattersall It saves the business money, but also increases hassle.

[@GosforthHandyman]

Indeed. One of many good reasons to switch to commercial only work. 👍😀

[@iTzZToMMyD]

Another great informative video! really enjoying your videos regarding self employment and tips and tricks. im 25 and joiner/ site supervisor and toying with the idea and going it alone. im currently weighing up the pros and cons . your videos are helping me , thanks

[@GosforthHandyman]

Great stuff and best of luck! It's hard work but well worth it. 👍

[@0skar9193]

4 dislikes are those customers that want work done for sweet FA

[@jbjoe249]

😂

[@nossasenhoradoo871]

"4 dislikes are those customers that want work done for sweet FA" You're already doing that (work for sweet FA) via indirect taxes, especially for the interest on the national debt which is between £5-£10 each day for everyone! If you want to stop paying taxes you need to disengage from invisible contracts. It's that simple!

[@paulsmith4337]

Plenty of them about unfortunately

[@oyster3145]

Take into account the fact that an income of £20k puts you in the bottom bracket, as a sole trader or otherwise. If you start making more money then tax increases. I'm not self employed, but I'm pretty sure Corporation Tax is the lowest its ever been in the UK at 19% for incomes (profits) of UP TO £300k. Maybe that could be something to look into as your business grows and you start making more money. Also some advice for people, due to the nature of this channel, if you are going into any form of contractor work in the UK, check out the Construction Industry Scheme (CIS).

[@GosforthHandyman]

Defo - totally agree. 👍

[@AntoniaLister]

Really interesting, thanks for doing the research!

[@leggbuildingdorchester6234]

Brilliant mate. S/E builder in Dorchester, very eye opening

[@GosforthHandyman]

Cheers bud 👊👍

[@markgilder9990]

Thanks. I’m an electrician, and maybe made redundant in the next few months, but looking on the bright side it may work out ok 👍🏻 Always find your channel interesting.

[@GosforthHandyman]

Cheers Mark and best of luck! 👍👊

[@mrfoameruk]

Have to agree about price. I have a eBay business and was working non-stop. put my prices up so we got less work (but made a bit more profit per item) but still got the same amount of orders, so put the price up again and had a very small decline.. Put my prices up again so now have a reasonable amount of sale for me not to overwork and accountant has just told me I made £11000 more profit this year over the previous year. When people are making little profit they guess by lowering their prices they will make more (by getting more work) but sometimes the better strategy is to increase your price and seeing if the market can take it.

[@philiprayner7960]

Great vid, been thinking of starting a business for a while and this is just the type of confidence booster that I need, thanks! 😀👍

[@GosforthHandyman]

Great stuff - you'll regret not doing it! Best of luck! 👊

[@BillsAllotmentDiary]

Hi Andy another great video as usual. I was going to quote a job today to be told that someone else has offered to paint the whole room standard size room in emulsion that's ceiling and 4 walls £40 for the whole room wtf crazy no wonder customers feel a reasonable quote is a rip off when you have guys doing jobs at rediculous prices. That has to be a full days work for less than the hourly rate when you take in to account listing fees petrol set up time etc.

[@GosforthHandyman]

That's shocking. Customers need to understand these businesses are running at a massive loss even with tax evasion. 🤔

[@BillsAllotmentDiary]

It's rife in my area had another job cancelled today because someone gave a lower quote to paper a feature wall than I did and I was only charging for the labour on the job what can you do though? Luckily I have alternative means of bringing in a wage with my other job.

[@nickyscott383]

Happy New Year Andy......great video. Really enjoying the content and the MeasuringUp podcast....wish you and family the very best for 2020 👍🤝

[@GosforthHandyman]

Cheers - and all the best to you and yours too! 👍👊

[@MikeS1935]

Brilliant it's what we all need a reality check now and again. As DIYer and then a Sole Trader when made redundant. I know what you have told us is money in the bank if you keep I simple and straight forward.and honest. I'm now 84.75 when I had to retire due to injury I had a list of return customers 9 months long, some even said they would wait for me to recover, but I had to retire. I'm now getting a workshop built as woodwork hobby den I want to learn Scetchup via your patron group to do it right. Happy, healthy. and hopefully a wealthy new year.

[@GosforthHandyman]

Thank you and have a fantastic 2020 too Michael! 👊👍

[@Tensquaremetreworkshop]

Pricing theory says you should increase your price until supply just meets demand. You were too cheap... (I know that in practice there are other factors- just saying)

[@gavjav1]

Happy New Year Andy, looking forward to your upcoming videos.

[@GosforthHandyman]

Cheers bud - happy new year to you too! 👊👍

[@richardheaton8162]

Great video Andy, love these small business videos that you do. Happy new year!

[@GosforthHandyman]

Cheers Richard and happy new year to you too! 👊

[@rolandkeys8297]

Great vidio. I've just been to do an estimate for a bathroom refurbishment, and the first thing they said to me was ," If you give us a good price for this bathroom, we have two others that you can do". I told then that my price is fixed and not negotiable. There reply was ,"you aren't starting on a good standing if you aren't prepared to be flexible". I am insulted when customes ask for discounts. I charge a fair rate for my service, don't rip people off and don't mind paying TAX 👍👍👍

[@GosforthHandyman]

Yup - wish more customers understood this. Best of luck! 👍👊

[@alexdougherty4905]

Happy new year buddy!

[@GosforthHandyman]

Cheers Alex - and to you! 👍

[@StrawbyteWorkshop]

Hey Andy, Happy New year. You're absolutely right about starting a business now, there's no better time.

[@GosforthHandyman]

Cheers bud and happy new year to you and yours! 👊👍

[@darrenelkins5923]

Be interesting to do this again in 2023!

[@SalC007]

I'm a London bus driver that works for an agency and have set myself up as a Limited Company. There is such a shortage of bus drivers in London that some bus companies are wiling to pay us agency drivers almost double what they pay their own drivers. For some people becoming a Limited Company maybe better financially than being self employed.

[@SalC007]

...i'd get advice from accountant to see which one is better.

[@StamosTee]

Happy new year Andy! Tax system in Greece is insanely unfair making investments and thoughts about starting a new job almost forbidden...

[@GosforthHandyman]

Happy new year too! Such a shame, I love Greece. A good friend of mine has a restoration project on Symi. 👍

[@marccole2825]

Another great video Andy - and yeah like every other one man band your advice certainly goes a long way in helping us stay focused. Happy New Year Andy to you and yours 👍

[@GosforthHandyman]

Cheers Marc - have a great 2020! 👍

[@johnhunter1262]

I live in the land at the top of your list. Funny thing is that we all complain about being over taxed. I'm sure that we all share that complaint. Happy New Year. Cheers John.

[@GosforthHandyman]

Cheers John! Yeah, everyone hates taxes but I had no idea some other countries had it so bad! Live and learn! All the best. 👊👍

[@superiorbeing95]

Happy New Year Andy

[@GosforthHandyman]

Thank you - happy new year to you too! 👊👍

[@PeterPetersNL]

In The Netherlands you can request to not have to charge VAT when you make less than 20.000 euro, I believe. It's your own choice though. You still can charge VAT when you earn less.

[@TonySmith-cd7jo]

I have sort of wanted to be self employed most of my life but I have felt that all the red tape and paperwork needed just to avoid being fined for getting something wrong and the extra effort to keep the government happy is not worth it.

[@GosforthHandyman]

There's not that much red tape while the business is small but obviously this increases as it grows. You've got to really want to be self employed though. :-)

[@geoffhayday6003]

Thanks for the video, I could not agree more. I am an accountant watching your channel as a hobbyist and although I have not been involved in tax work for many years I used to make these same points, and those re working out a sensible charge out rate, to my clients on a regular basis. There are also some business friendly opportunities for the self employed worth mentioning. To stay under the £85,000 VAT registration threshold all tradesmen should be asking their customers to buy the materials themselves, so that the tradesman only supplies labour. If they charge for materials they will reach the VAT threshold much quicker. I know some tradesmen make profit on materials but they should weigh this against the impact of VAT registration. The other, perhaps boring, thing is pension contributions. If you can afford it, pay as much as you can (up to the lower of £40k or your earnings) into a pension scheme. You get tax relief on the amount you pay in and get 25% of the cash back tax free when you draw your pension. This might not sound much, but if you are a higher rate tax payer now and kept £10,000 as income you would pay £4,000 in tax. Pay the £10,000 into a pension scheme you pay no tax on it now and are only taxed on £7,500 when you eventually draw it. Assuming you are then only a basic rate tax payer, that is £1,500 tax verses £4,000, an effective rate of 15%. I know people need to live, have mortgages etc to pay off but this is a very good deal. I would add I am in no way connected to the pension industry. Keep up the work on the great videos.

[@GosforthHandyman]

Great tips - cheers Geoff! 👍👊

[@hansdegroot8549]

Very interesting video outside the woodworking box. (more something I expected to see on your other YT Channel to which I'm subscribed as well) What does "making tax digital for self assessment" mean?

[@GosforthHandyman]

Cheers bud! Basically the government are trying to bring in a thing that means you have to install software on your computer to give the government direct access to your accounts. It's happened for VAT and they're talking about doing it for income tax too. It would mean going from doing a tax return once a year (with 9 months to prepare the return) to possibly doing monthly or quarterly returns. It would be an absolute disaster. 👍

[@rgthomson100]

I was taxed at 40% and had to pay 40k in tax first year, thought i was going to earn decent money with the hassle i had to put up with, put me right off being self employed, noted you saying no one benefits from Vat but some do, working in the building trade on new build all my Vat was returned to me

[@Conchiron]

The thing about V.A.T being 20% more expensive isn't exactly true. I'm currently not V.A.T registered as I don't reach the threshold, but I have to pay V.A.T on materials that I can't claim back, which means I still have to pass it onto the customer. So all of my materials cost 20% more, therefore I charge the customer 20% more, even though I don't charge or reclaim V.A.T. So a V.A.T. registered company would have to charge 20% more on only the value they themselves add to the materials, but bear in mind I also can't claim back V.A.T on tools, accessories, fuel, all of my outgoings, which means all of that needs to be passed on to the customer, making the difference charged even smaller.

[@Professorvapes]

hi good video but we all know there is more to it like no sick pay . high public insurance, running cost, tools, premises, and the list goes on and the government always moves the goal post I know because I have been self employed most my life. however the one positive thing I can say is that you answer only too yourself down side is the ups and downs.

[@scoyle1750]

Great upload and great advice I am definitely not charging enough but have months of work ahead of me the two are definitely linked👍

[@GosforthHandyman]

Sounds like it's time to up your rates! Cheers bud! 👍👊

[@bhjoinery6230]

Great video!

[@GosforthHandyman]

Thank you! 👊

[@tombeever6309]

You're extremely right! Count yourselves lucky in the UK (apart from the weather). I've been living in Spain for over 6 years and studying joinery here for the last 2. You pay around 38- 40% income tax same as you showed for Italy and as you showed you are required to charge VAT from the get go. Beyond that, you are charged a fixed fee of 300€ per month just to have the right to be a freelancer/self employed! Its an extremely difficult system to the point where, even though there's a huge lack of qualified tradesmen in Spain, going out in your own just seems almost unattainable... may have to move back to Blighty!

[@GosforthHandyman]

That's mad Tom! I've heard similar reports from different EU countries too - Poland etc. Don't know why they make it so hard to be self employed?! Best of luck! 👍👊

[@lukekeegan3285]

Great video Andy, could not agree more about MTD.

[@GosforthHandyman]

Cheers Luke. Yeah, it's on hold at the moment for SA - let's hope they keep it that way. 👍👊

[@fredbeverton553]

Thank you great post great advice all the best in 2020

[@GosforthHandyman]

All the best too Fred! 👊😀

[@thomasespley6076]

"Traders don't benefit from any way in charging VAT." I don't think this is strictly true. If you're VAT registered you can reclaim the VAT you pay on your business supplies (input VAT), which can be a very significant saving.

[@GosforthHandyman]

Yeah, sorry - what I meant was that the VAT received doesn't benefit the trader in any way. Often folk forget this. 👍

[@thomasespley6076]

@@GosforthHandyman no problem. Very nice to hear a trader talking about the benefits of UK tax and giving a fair view rather than just the negative aspects

[@christofix]

Another interesting video, Andy! thanks for sharing!

[@GosforthHandyman]

No worries - all the best! 👍👊

[@TotalCarping]

Great video Andy, some fantastic information

[@GosforthHandyman]

Cheers bud! 👍👊

[@Naiemaa]

Where did the numbers for Australia come from?! It’s actually way higher. 32.5% of under $90K incomes more it jumps to 37% and then 45%

[@GosforthHandyman]

See community tab on this channel - someone from Australia gave those figures. 👍

[@sikkepossu]

Happy New Year, Andy! I guess 35%.

[@GosforthHandyman]

Happy new year too! That's around the figure most people say! 👍👊

[@clarkspiemuncher24]

what we also need is construction employment agencies and payment companies regulated and stop the practice of charging someone to get paid ? its the only industry where you have to pay to get paid ?

[@Tensquaremetreworkshop]

I have been self employed for the last 23 years. I passed state retirement age 9 years ago, so have not had to pay NI since then. I work max one day per week, so pay only basic rate (20%) on 'profit'. I claim for the PC I work on (I am a product developer) a proportion of my heating, lighting broadband etc (all legit). Why would I stop? This must be one of the best countries on the world to be self-employed.

[@GosforthHandyman]

Defo - wise words. Keep going! Have a great 2020! 👊👍😀

[@A1DJPaul]

It Would be about £2500. in the UK. £12500 Before Tax then 30 % of all above that figure. Made up of 22% income tax & 8% Nat Ins. = 30%. I Pay an Accountant to Deal with it. One Who Works FOR ME not the State.

[@Finderskeepers.]

These numbers are being massively effected by the local tax free allowance which is front loaded. If income increases, the tax % could double. In the UK, tax is only charged on 8.5k of the 20k income but it will be charged on all additional income.

[@GosforthHandyman]

Defo - this was just for the £20k example but I'll be breaking this down a bit more over on my SBT channel kzbin.info 👍

[@needaman66]

Australia has a GST of %10. Out threshold is $75,000. We can reduce that by taking out our costs

[@LostWhits]

Would $20,000 put you in the low income tax bracket?

[@needaman66]

@@LostWhits people on benefits earn 20k here. We also have a no tax threshold which is at 6k i think

[@GosforthHandyman]

Interesting how varied VAT/GST rates are around the world! 👍👊

[@winnieowen4401]

if you earn 20k profit i thought you can only get taxed on the 7.5k cause your tax code is 1250 ? so am i wrong would like to know the answer.thanks

[@0skar9193]

Andy, can I post this video to my business Facebook page? I have just started out and want to send the right messages out to potential clients. I am already fed up with the "we only pay £15 p/hr" or similar crap.

[@GosforthHandyman]

Cheers Paul! Absolutely - thank you! Just use this URL for sharing it: kzbin.info/www/bejne/mnvcXn5vgq9qjq8 👊👍

[@mrfoameruk]

Just pay your tax otherwise that small business you have when it gets big means you will have some explaing to do later to your new accountant. Your always looking over your back for several year after you go legit.

[@GRIBBO-77]

Would just like to add. I have lived in France for just under 11 years, and I'm registered as an Auto - Enterprise (used to be known as Auto - Entrepreneur), which is basicaly a sole trader. The biggest problem I have here isn't with tax but the "cotisations sociales obligatoires", the French equivelant to National Insurance. Mine works out at 24.8% and this isn't banded. If I only earn 500 Euros in a month, just under a quarter goes to the RSI / URSSAF. I've had enough and I'm selling up and returning to the UK!

[@GosforthHandyman]

Oh my god! Only 9% here. Could you work as a company instead? 👍

[@GRIBBO-77]

@@GosforthHandyman People are trying to get away from being registered as SARL etc. (LTD) because you have to pay quarterly and it is taken as an average of the previous 3 years, so if you jave a couple of really good years and then it goes flat, they'll take the money and you need to wait to get the difference back. I know a lad who broke his collar bone around September time and they still took over 3000 Euros at the end of the following September, saying that he should have saved it from the previous quarter. By the time it was sorted, his next payment was due.

[@GRIBBO-77]

@@GosforthHandyman I've done a quick calulation and, on 20000 Euros, you pay 2580 Euros tax and 3840 Euros to the RSI (National Insurances), leaving 13580 Euros take home. I have a screen shot of an RSI return that I can send you to show the 24.4% RSI and here is a link to a French tax calculator - salaryaftertax.com/fr

[@jakematic]

Fascinating analysis. Initially me head exploded at such a ‘low’ rate then I thought about the piss poor revenue numbers. Keep up the great work mate, and... trades charge more... customers stop bitching and value your craftsman’s life.

[@GosforthHandyman]

Cheers Jake! A lot of UK businesses could really benefit from the US outlook on life. It's getting better though... I think. 👍😀

[@davidbrunt4044]

Top video and great advice

[@GosforthHandyman]

Cheers David! 👍👊

[@mrjw6701]

It’s great advice as always but customers still want everything done as cheap as possible. I’m in my third year of self employment and I still seem to lose more jobs than I win despite giving very reasonable quotes, people in the U.K. really do not know how difficult it is for a self employed tradesman to make a decent living most would rather bodge a job and do it themselves than pay a pro to do it properly. I’m hoping this will be a good year otherwise I’ll have to weigh up my options.

[@GosforthHandyman]

Keep at it - build up a portfolio of good clients. Still early days. Try to branch out in to commercial work too. Best of luck! 👊👍

[@mrjw6701]

Gosforth Handyman thank you for the reply. Any tips or advice on how to get into commercial work? Thanks

[@BRI535D]

Please do a video that looks at the competency and regulation of the various trades.Believe me as a time served engineer and retired airline pilot I can assure you that the level of competency I have witnessed over 25 years in this country is abysmal.It is way too easy to enter the world of construction and maintenance with zero aptitude and then wreak havoc on the general public.I have come across these people whilst building up my rental portfolio but I am lucky enough to have a couple of good old school fully trained mates in the trade who I put my faith in.It is still far too easy to get ripped off by shoddy workmanship that leaves an everlasting nasty taste.Small wonder people are reluctant to pay a decent rate for jobs.I agree with all your costing analysis by the way.Excellent honest channel .

[@GosforthHandyman]

I don't disagree - I don't think the answer is more regulation as we can't even enforce existing regulation (much of which is nonsense). I think the entire qualifications system needs sorted out though as it's a mess for the trades at the minute. One of the biggest issue seems to be trades simply not charging enough (and customers not paying enough) stemming from a complete lack of understanding of how to run a business. It's a big topic. 😀

[@BRI535D]

@@GosforthHandyman It's a sorry state really because top notch guys like yourself have reputations tainted by the cowboys.It does seem like you say that word of mouth recommendation is the only way.Just because someone has 'Gas Safe' or 'Check a trade' on the side of their van doesn't mean much I'm afraid !

[@johnbell7552]

Truer word have never been said. £30 pr hour really is so cheap! When the costs of tools, Insurance’s your vehicle etc, then there’s the one thing most forget about altogether, Consumables! You’ll be amazes at how much you spend on things like screws and other fixings, sandpaper and glue! Has any of you out there totted up the amount you spend on GLUE. You will be amazed

[@GosforthHandyman]

Yup - sadly there's a lot of folk who think £30 is expensive and they're dragging everyone else down with them. 👍👊

[@clarkspiemuncher24]

£20000 profit - £12500 personal allowance 2019-2020 tax yr = £7500 x .20 = £1500 tax to pay ? plus class 4 = 9% of profit £675 plus class 2 national insurance £153 = total to pay tax man = £2338 ? 20% already paid = aprox £5000 ? so £5000 - £2338 = £2662 owing to you ?

[@Jodyphotograph]

Another informative video Andy, thank you 👍

[@GosforthHandyman]

Cheers bud - all the best! 👍

[@ashleycole7779]

Thanks, you too

[@chippy3350]

The 30 pound an hour does that take into account transport costs and tooling cost.

[@GosforthHandyman]

Yes, but even then you'll not be making enough to spend megabucks on tools. 👍

[@petergarton5629]

You mentioned about another help channel you do. Please repeat it to me. I have always been worried about the tax side of things and you have just relaxed me. Please help. Peter.

[@GosforthHandyman]

Thank you! Small Business Toolbox - here's a link: kzbin.info 👍

[@craigpeel5995]

Andy, you mention £30 per hour what about if a job takes for example 3 hours do you just charge £90 considering you have to get to the job and back etc but the rest of the day goes uncharged?

[@GosforthHandyman]

Yeah, this is where it gets complicated and really depends on the job. If you can do a 3 hour job in the morning and a 3 hour job in the afternoon £180/day could work. See my hourly rate vid as I go in to this in a bit more detail on there. 👍

[@gslavik]

I think the US number might be off. I presume when you asked about 20k pounds, that was per month. The Income tax in US of ~15% would be for a $20k income for an entire year. $20k/month income in US is closer to 22% effective tax rate, in addition to ~5% for Medicare and Social Security (FICA tax). Both are federal level taxes (not including state/local income tax)

[@garyharris8082]

nope its per year

[@GosforthHandyman]

Yup - per year! Lordy, we're not footballers. 😂👍👊

[@mrfoameruk]

20% above £12000 so £8000 will be taxed at 20% =£1600 approx

[@mc-yt2rc]

looking forward to your 2020 vids. hny.

[@GosforthHandyman]

Cheers bud - and you! 👍👊

[@lynnew5619]

Very interesting. How much do you think someone who saves your life by nursing you through an illness is worth per hour? When I left nursing a few years ago, I was paid £12/hr. And no, I wasn’t unqualified or on the bottom rung either. The govt will try and tell you it’s much more, but it’s not. So forgive me if I think £30/hr or part thereof - even if it’s only 10 mins - is not a paltry amount. I’ve had mostly awful experiences with tradesmen. They arrive - usually late, spend time chatting on the phone on my dime, stop for 1hr+ for lunch, then disappear at about 3pm, but charge me for a ‘full days work’, which for me was a 12hr shift (plus more because a nurse cannot just pack up & leave on the hour) and for them should be 8 hrs, when they’ve done about 5hrs. There have been exceptions, but they have not been the norm. Ps, you did say we can rant! Lol

[@timh5529]

Great video Andy! Now I don't want to start an argument with this. But it so often does. However, I'd like to know so I'm gonna ask. Brexit. Do you think its going to be a positive or negative for self employed people and the trades?

[@GosforthHandyman]

Cheers Tim! I think we're in a great place regardless of Brexit. Suitably diplomatic? 👍😀

[@timh5529]

@@GosforthHandyman I try to avoid the subject at all costs on the Internet XD

[@LostWhits]

So when are you actually leaving the EU? Also will Scotland leave the UK now that they're leaving the EU? Wasn't that one of the reasons Scotland's referendum resulted with a Stay Vote?

[@ealingbadger]

@@LostWhits 23:00 on 31st March 2020 (allegedly... I'll believe it when I see it!)

[@GosforthHandyman]

@@ealingbadger erm... 31st Jan surely? 🤔

[@Mrfreezeee1]

Things to remember,when a customer ask you to give them a discount ,ask them if they go to work all day and only take pay for half of it ,and then ask them if they dont why should you ,Mad Mac is right about cutting prices to underbid someone else ,its not only foolish ,but plain stupid ,i do what i do because i enjoy it ,when we take on a job at someones home its a responsibility on you ,that you do the job the right way ,by code ,and so on ,you should be paid accordingly

[@mrfoameruk]

Some people do benifit from VAT. some exporters i think and when i spoke to my accountant he said chemist do....not sure how though.

[@grahamormesher8130]

I was self employed for 38 years. I paid as much tax as I chose to. ;-) By the way, those are the best chisels money can buy. Did you know they stopped making them in 1968, yet ebay is flooded with them. I must have 30.

[@GosforthHandyman]

They're lovely chisels! They were my dad's - due a bit of a clean up. 👍👊

[@jbjoe249]

In Croatia over 15000 I will pay over 50%. And food and everything else is more expensive than in London. Flats are only 30% cheaper. And government won't you success like in GB. I have a feeling everyone won'ts to help me there.

[@GosforthHandyman]

Ah man, sorry to hear. Hope they sort it out 'cause small businesses are the lifeblood growing economies. Best of luck! 👊👍

[@jbjoe249]

I don't care... I'm moving to UK. I was working for social housing company in London before two months. Now searching something like that, cos I'm multitrader. We'll see. You are blessed with your country.

[@TheAsa1972]

Tax whats that?

[@videogalore]

Perhaps you've covered this on the business channel, but why run as a sole trader as opposed to a ltd company?

[@GosforthHandyman]

It's a huge topic and yes, I'll be covering it in more detail over on the SBT channel this year. 👍👊

[@nocode1603]

I'm a one man small business I do Pat testing I get lots of calls asking to go test rental property's I need to be charging about 70/100 to make any money only then to be told I can get it done for 30 old saying pay peanuts get monkeys. I'm city n gilds qualified can't get the customers to see past cheep is best 😞

[@observingyt6159]

Hapy New Year! I was wondering your thoughts on doing carpentry and joinery in college at 26 years old?

[@GosforthHandyman]

If you can find a good college and apprenticeship go for it! It gets harder as you get older but at 26 I would think you'll still be fine. 👍

[@observingyt6159]

@@GosforthHandyman Ok thanks! The college seems good. I actually went to an introduction day last year but had to postpone starting until this year.

[@simonelliott7570]

I went back to college at 24 to do carpentry. The hardest part was being in the classroom with 16 year olds who want to arse around .

[@observingyt6159]

@@simonelliott7570 That does sound annoying. Were you the only one your age on the course?

[@simonelliott7570]

@@observingyt6159 yes I was the only one my age. But I got on well with the teacher was able to get my head down and get on. I don't regret it tho a friend did a sort of on site training thing with a company the standards were very low and my corse was much better. I still have many of the good habits I picked up there.

[@callumbrankin883]

Will this be uploaded to Small Business Toolbox?

[@GosforthHandyman]

No, got a different thing planned for over there. 👍😀

[@callumbrankin883]

@@GosforthHandyman nice! Looking forward to watching it!

[@rogermartin9481]

Hi Andy, I live in Australia, I’m nearly retired. This was so very interesting. There is another race to the bottom and that’s what our ever changing governments are doing, hip pocket nerve electioneering means lower and lower tax rates and lower and lower government services. Low tax rates do not necessarily mean a better quality of life! I would much prefer to pay higher taxes and have decent gov services, and BTW our GST (VAT) is only 10%!

[@LostWhits]

$20,000 might put you on Centrelink payments. Not a livable income.

[@GosforthHandyman]

Would tend to agree! 👍👊

[@northeastcorals]

Lower tax for businesses usually stimulates an economy far more than high taxes, this can actually result in the government actually collecting more in tax overall by charging less. You tend to find governments just p*ss the majority of your hard earned taxes up the wall anyway so I'd go for lower taxes any day.

[@daveansell1970]

@@northeastcorals It depends how low the tax is, if you are looking at taxes in the 60's and 70's reducing it helps. If you look at current taxes rates much less so. Reducing tax rates possibly will slow the economy as the money just goes to the very rich who have no need to spend it, where as tax money gets spent by the government, (though like any large organisation some money is wasted, a lot is usefully spent).

[@northeastcorals]

I was mainly referring to tax rates on low to middle earners as this is what most affects spending & was being discussed in the video. I worked in publics services & the money I saw wasted was outrageous.

[@georgeclark4564]

Regarding the current lack of skilled tradesmen, this is only going to get much worse as we leave the EU and abandon FoM.

[@redmille1000]

Not true, there are a lot of skilled tradesmen in the UK, unfortunately with the influx of foreign labour willing to work for lower pay the rates have remained stagnant for years. Being self employed means that there is no minimum wage, we charge what the market and competition dictates.

[@imusuallycorrect]

Tony Stevens this is nosense that’s been peddled for years. Where’s your proof? There is a skilled shortage, who’s fault is that?!

[@redmille1000]

Ben , my proof is working in the building trade for over thirty years. It is true that there is a lack of skilled trades because young people can’t find the training, it’s bloody hard work and outside of London the wages are crap.

[@imusuallycorrect]

@@redmille1000 Construction accounts for 6% of UK GDP... hardly a decent sample is it.

[@redmille1000]

Ben , I’m simple, explain your point.

[@brunosmith6925]

First time visitor Andy - and like what I see. I've been running my own business for around 12 years. (I am not in the "trades" but provide a range of custom products offered through various websites). It's a Ltd company - has been since inception - and have been lucky enough to make sufficient gross profits to afford the additional costs associated with a Ltd structure, such as professional accountants and other consultants. A benefit of a Ltd company is the ability to pay dividends, which are at a far lower tax rate than income. I totally agree about "race to the bottom" strategies. I have NEVER discounted my products and services, and in fact, remain around 30% to 40% more expensive than most competitors. This does however commit you to giving a better quality service and product, and if you prove this to your customers, the higher price is never an issue... besides, people who insist on discounts are already looking for "cheap", and I happily encourage them to shop elsewhere. It is far more profitable (and efficient) to get 2 jobs for £100 each, than 4 jobs for £40 each. Many people starting out in business fail to recognise that making a SALE is not the same thing as making a PROFIT - and that there are some customers you DO NOT WANT... Let your competitors lose money, while you chase the stuff that has value. Like your channel - will like and subscribe.

[@GosforthHandyman]

Very wise words - I wish more people had this outlook. Too many forget they're in business to make a profit. 🤔👊

[@davidbernard7256]

same in australia, you earn more as a tradie than doing ICT (computers)! i got out of computers as every person from overseas wanted to work for less.

[@roberthaynes73]

I paid 20% tax as a sub contractor. Pinch of salt needed.

[@GosforthHandyman]

You still get a £12,500 personal allowance though. 👍

[@MARTINA-gc3tq]

Is that 20k declared profit......

[@GosforthHandyman]

Yes! 😂

[@andrewallen9993]

It is not necessary to pay tax on cash received in hand as the person giving you the cash has already paid the tax on it :) What HMRC dont know cant hurt you.

[@GosforthHandyman]

It's hurting quite a few people at the mo. who aren't getting lockdown grants. 😬😀

[@peetsnort]

Time to get physical sterling silver money and bypass the paper cash and digital paper trail

[@byronservies4043]

Today I went to my local lighting store, and inquired about their service department for one of my lamps. Alas, they said, they no longer have a service department because the independent fellow they had in house passed. Tomorrow I will take my vacuum for repair; I hope they still exist.

[@24revealer]

That's why I fix as much of my own property that I can. The corporations no longer provide service, just throw away consumable products that are engineered to last 3 years. Its all about profit, not about a quality product.

[@GosforthHandyman]

Yup - be prepared for the world of even servicing being done by Amazon. It's already started. 🤔

[@ruinunes8251]

24revealer some consumables don’t even last a month.

[@24revealer]

@@ruinunes8251 I realize that, but the big appliances are engineered so the electrical components and some of the tubing are only designed to last just past the warranty. I've seen it in refrigerators especially. You can make them last longer by using higher quality components that are made above their minimum specifications. Some examples are start capacitors and bearing in motors. Replace the bearing with high quality Japanese. Italian or German made components as they don't make most of these things in North America anymore.

[@ruinunes8251]

24revealer Another day my wife bought a mixer and guess what? After one use, yes, after one use, the fan that is used to keep the motor cooled fell off. Do you believe this? This sort of garbage shouldn’t be allowed for sale. It costs us money, our time and sanity. I repair most of my stuff when is out of warranty. But the thing is, now a days we are discouraged to fix anything, even the right to repair needs to be done by a professional when some repairs are really easy not using a professional Enginner.