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Newly Self-Employed -  The Basics Business Education & Support Team |  Mayl 2010  |
How do I tell you that I’ve started? <ul><li>You can register in three ways. </li></ul><ul><ul><li>By phoning the Helpline...
What do I have to pay? <ul><ul><li>Class 2 National Insurance  </li></ul></ul><ul><ul><li>Class 4 National Insurance </li>...
Class 2 National Insurance  <ul><ul><li>Class 2 NIC’s is £2.40 per week </li></ul></ul><ul><ul><li>Paid by Quarterly Bill ...
Class 4 NICs – 2010/11 <ul><ul><li>8% on taxable profits between £5715 and £43875 </li></ul></ul><ul><ul><li>1% on taxable...
Income Tax Rates  <ul><li>Personal Allowance £6,475  </li></ul><ul><li>Basic Rate 20% of taxable income up to £37,400 </li...
What exactly is a ‘Tax Return’? <ul><li>A Tax Return is a record of your total income from all sources.  For Example: </li...
When will I get my ‘Tax Return’? <ul><li>6 April 10 to 5 April 11 Date of Starting </li></ul><ul><li>6 April 2011 Tax Retu...
Record keeping <ul><li>There are three steps to remember. </li></ul><ul><ul><li>Set up a system. </li></ul></ul><ul><ul><l...
Day to Day Expenditure <ul><li>Direct cost/Materials </li></ul><ul><li>Fuel, MOT etc.. </li></ul><ul><li>Wages </li></ul><...
Registering for VAT <ul><li>You must register for VAT if </li></ul><ul><ul><li>your turnover of taxable supplies reaches, ...
|  May 2010  |
Further help and guidance <ul><ul><li>HMRC Website:  www.hmrc.gov.uk </li></ul></ul><ul><ul><li>Employer CD-ROM  </li></ul...
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[PDS] Selling your Work

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Vance Crawley, Business Advisor, HMRC.

Vance talks about registering as self employed in order to sell, the advantages of doing this, and how the process works.

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Transcript of "[PDS] Selling your Work"

  1. 1. Newly Self-Employed - The Basics Business Education & Support Team | Mayl 2010 |
  2. 2. How do I tell you that I’ve started? <ul><li>You can register in three ways. </li></ul><ul><ul><li>By phoning the Helpline for the Newly Self-Employed on 08459 154 515. </li></ul></ul><ul><ul><li>By completing a form CWF1. </li></ul></ul><ul><ul><li>Online at www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm </li></ul></ul><ul><ul><li>You must Register immediately! </li></ul></ul>
  3. 3. What do I have to pay? <ul><ul><li>Class 2 National Insurance </li></ul></ul><ul><ul><li>Class 4 National Insurance </li></ul></ul><ul><ul><li>Income Tax </li></ul></ul><ul><ul><li>VAT (in some cases) </li></ul></ul>
  4. 4. Class 2 National Insurance <ul><ul><li>Class 2 NIC’s is £2.40 per week </li></ul></ul><ul><ul><li>Paid by Quarterly Bill or Monthly Direct Debit </li></ul></ul><ul><ul><li>Small Earnings Exception is available if annual profits are expected to be less than £5075 </li></ul></ul>
  5. 5. Class 4 NICs – 2010/11 <ul><ul><li>8% on taxable profits between £5715 and £43875 </li></ul></ul><ul><ul><li>1% on taxable profits above £43875 </li></ul></ul><ul><li>For Example: Profit £12,000 </li></ul><ul><li>Less Lower Limit £ 5,715 </li></ul><ul><li>Chargeable Amount £ 6,285 </li></ul><ul><li>Tax Due: 6,285 @ 8% = £502.80 </li></ul>
  6. 6. Income Tax Rates <ul><li>Personal Allowance £6,475 </li></ul><ul><li>Basic Rate 20% of taxable income up to £37,400 </li></ul><ul><li>Higher Rate 40% above £37,401 </li></ul><ul><li>Additional Rate 50% above £150,001 </li></ul><ul><li>For Example: Profit £12,000 </li></ul><ul><li>Less Personal Allowance £ 6,475 </li></ul><ul><li>Taxable Income £ 5,525 </li></ul><ul><li>Tax Due: 5,525 @ 20% = £1105.00 </li></ul>
  7. 7. What exactly is a ‘Tax Return’? <ul><li>A Tax Return is a record of your total income from all sources. For Example: </li></ul><ul><li>- Main Tax Return </li></ul><ul><li>- Self Employment Page </li></ul><ul><li>- Employment Page </li></ul><ul><li>- Land & Property Page </li></ul>
  8. 8. When will I get my ‘Tax Return’? <ul><li>6 April 10 to 5 April 11 Date of Starting </li></ul><ul><li>6 April 2011 Tax Return or notice Issued </li></ul><ul><li>31 October 2011 Filing Date for Paper Returns </li></ul><ul><li>and HMRC Calculation </li></ul><ul><li>31 January 2012 Filing Date for Online Returns </li></ul>
  9. 9. Record keeping <ul><li>There are three steps to remember. </li></ul><ul><ul><li>Set up a system. </li></ul></ul><ul><ul><li>Keep your system up to date. </li></ul></ul><ul><ul><li>Retain your records for five years from the relevant statutory filing date. </li></ul></ul>
  10. 10. Day to Day Expenditure <ul><li>Direct cost/Materials </li></ul><ul><li>Fuel, MOT etc.. </li></ul><ul><li>Wages </li></ul><ul><li>Trains and Taxi’s </li></ul><ul><li>Premises </li></ul><ul><li>Accountants </li></ul><ul><li>Interest </li></ul><ul><li>Telephone, postage and stationary </li></ul>
  11. 11. Registering for VAT <ul><li>You must register for VAT if </li></ul><ul><ul><li>your turnover of taxable supplies reaches, or is likely to reach the VAT registration threshold, currently £70,000. </li></ul></ul><ul><ul><li>you have taken over an existing business as a going concern which is already registered </li></ul></ul><ul><ul><li>National Advice Service – 0845 010 9000 </li></ul></ul>
  12. 12. | May 2010 |
  13. 13. Further help and guidance <ul><ul><li>HMRC Website: www.hmrc.gov.uk </li></ul></ul><ul><ul><li>Employer CD-ROM </li></ul></ul><ul><ul><li>Helplines and Orderlines </li></ul></ul><ul><ul><li>Workshops – 0845 603 2691 or www.hmrc.gov.uk/bst </li></ul></ul><ul><ul><li>Business Advice Open Days </li></ul></ul><ul><ul><li>Business Link: www.businesslink.gov.uk/taxhelp </li></ul></ul><ul><ul><li>Department for Business, Innovation and Skills: www.bis.gov.uk (previously known as BERR and DTI) </li></ul></ul>
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