Articles tagged with: self employed
on the bridge »
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Will I pay tax twice?
For tax purposes, all of your income in a single tax year is lumped together and the tax calculation is a single exercise. Nobody should have to pay tax twice.
However, with National Insurance Contributions, the system is peculiar and there is often a risk of paying too much.
Having said that, both the Revenue and the Contributions Agency have been know to make mistakes, lots of mistakes. So it’s worthwhile having an accountant check the position.
one offs »
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You have 3 months in which to register
When you first become self-employed there are a number of things you should do . . . today!
Register with HM Revenue and Customs (HMRC)
Compile a list of things that you have introduced into the business
Set up a simple accounts system to record income and expenses
Open up a business bank account
Earmark a separate savings account for keeping your tax reserve
And, before doing any of that you should think carefully about the official date …
Apply for a reduction
You can pay less tax! The self employed normally have to pay their income tax in two 50% instalments on 31 January and 31 July every year. The system is not perfect and is based on information that’s almost two years old. If you’ve had worse results than normal over the past twelve months or so, your tax bill should be less. So, why pay more?
You can apply for a reduced payment on account. In the right circumstances, that can mean a reduction to NIL.
Is that …