Pedddle Founder Nicki recently to spoke to Danni and Enzo from Earnr, an app for tax and finance. Enzo co-founded the app and Danni works as a marketing officer at Earnr, so Nicki chatted to them to explore how Earnr can help UK small businesses, stallholders and makers. Click here to check it out!
Earnr is an app that helps people with side hustles, small businesses or an extra income source, to keep everything in one place and help you complete your tax returns much easier. Earnr breaks down technical terms and jargon to simplify completing your tax returns. Companies like Freshbooks and Xero can be easy for accountants to go through, but Earnr was created to make it much easier to do everything digitally for novices – so that you can spend more time on your creative pursuits.
Using the app for your book keeping is completely free if you want to simply keep track of your income and outgoings it’s free to download and use the app. And if you submit your self assessment with an income of under £3000 it is free, or there’s a flat fee of £99 for submitting self assessment of over £3000 income.
You can watch the IGTV below (via the PedddleUK Instagram IGTV), but these are the main highlights:
Main take-aways from the IGTV Live chat:
Talk us through how Earnr works – what features will benefit makers most?
You can link more than one bank account to it and organise your transactions easily. Earnr’s book-keeping feature means you can keep track of all sales from the business and outgoings easily.
They offer a Business Insights feature, so you can keep a track of your profit and growth.
You can submit taxes via the app too, making it really easy to submit your self assessment.
Ask us questions any time – we’re here to help, meet the team here. There are no stupid questions! Tax can seem complicated, so our team are always on hand to ask any questions.
Do you have any tips for submitting tax return?
Set clear time aside to focus on it and mentally prepare yourself to do it that day. Everyone dreads it so reward yourself – give yourself a nice brunch or something as a treat afterwards!
How much do I need to earn before I submit a tax return?
If your sales are less than £1000 in specific year, you don’t have to register your taxes for that year – remember this is in sales, not profit. Even if you’ve made a loss, you have to submit taxes for that year if you have made over £1000.
Do I need to use a business account?
With Earnr you can connect multiple business accounts and PayPal, so you can select transactions from various accounts to keep a record. You can’t yet link sales from selling platforms such as Etsy, but Earnr are looking into developing this as a feature in future so that you can see where your sales are coming from in more detail. However, if this comes through your bank account as a sale, it will be registered anyway in the app.
In 2024, all Sole Traders will have to submit their taxes digitally
Making Tax Digital becomes law in 2024 in the UK. You will need to submit quarterly returns for Self Assessment, rather than annual ones, so you’ll have to do a tax return every 3 months.
Secondly, you will have to use an app to track of all of your receipts, income and outgoings, so if you start sooner it’ll be easier in future! There are a few certified apps that have been selected by HMRC to do this, with Earnr being one of them.
Is there anything I can do to offset my taxes?
If you buy anything for your business you need to prove that you are using it for your business, but you can claim back for it. Some people offset clothing costs but you would have to prove for example that the item is branded, or that you wear it each time you’re doing a certain thing that’s specific to your business. Some people have even offset rent in the past, if they can prove they need a workshop or office space in a spare room.
Watch the full IGTV Live here:
Download the Earnr app
It’s now launched on both android and IOS – check it out here.
We hope this helps you to submit your taxes more easily in future! Check out our other blogs for further small business tips.