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[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
[PDS] Selling your Work
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[PDS] Selling your Work

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Vance Crawley, Business Advisor, HMRC. …

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

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

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