Newly self employed? v2

Newly self employed? Tax points to watch out forHelping self employed people pay less tax and avoid fines

Helping self employed people pay less tax and avoid fines

Tax & National Insurance There are two types of national insurance for the self employed personHelping self employed people pay less tax and avoid fines

Tax & National Insurance You might be shocked to find out that there could be two years worth of tax due in one yearHelping self employed people pay less tax and avoid fines

Tax Is paid on the 31st January following the tax year end. PLUS possible payments on account for next yearHelping self employed people pay less tax and avoid fines

Payments on account Are an estimated tax due on 31st January and 31st July So, in effect you could pay 150% of the expected tax bill on 31/1, with a further 50% on 31/7.Helping self employed people pay less tax and avoid fines

National insurance Class 2 contributions: set at a fixed amount per week. Paid throughout the yearHelping self employed people pay less tax and avoid fines

National insurance Class 4 contributions: based on the profit at the year end. Paid at the end of the year, alongside the tax due.Helping self employed people pay less tax and avoid fines

Record Keeping Keep receipts and invoices for 6 years.Helping self employed people pay less tax and avoid fines

Record KeepingHelping self employed people pay less tax and avoid fines

Record Keeping In case of enquiry – reduced costs if records are complete and easily searched. To reduce input time - update your records regularly... or get help doing this.Helping self employed people pay less tax and avoid fines

New penalties From April 2011 • Return not submitted - £100 fine plus: • After 3 months late – £10 per day for up to 90 days, then • After 6 months late – the greater of £300 or 5% of the tax due • After 12 months late – the greater of £300 or 5% of the tax dueHelping self employed people pay less tax and avoid fines

New penalties From April 2011 Plus up to 100% tax penalties for incorrect/failing to notify HMRC .Helping self employed people pay less tax and avoid fines

New penalties will stand even if there is no tax due. Failing to submit a return for a year, with no tax actually due, could cost up to £1600 in fines now.Helping self employed people pay less tax and avoid fines

Newly self employed? v2

by James McBrearty on Jul 17, 2012

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Newly self employed? v2 Presentation Transcript

http://taxhelp.uk.com	8
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