Newly self employed? Tax points to watch out for

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

Tax & National Insurance Currently: Two types of national insurance Could be two years worth of tax paid in one yearHelping self employed people pay less tax and avoid fines

Tax Paid on the 31st January following. PLUS possible payments on account for next year: estimated tax – on 31st January and 31st July 150% 31/1, with a further 50% 31/7.Helping self employed people pay less tax and avoid fines

National insurance Class 2 contributions: set at a fixed amount per week. Class 4 contributions: based on the profit at the year end.Helping self employed people pay less tax and avoid fines

Record Keeping Keep receipts and invoices – 6 years In case of enquiry – time costs. Reduce time - update regularly... or get helpHelping 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 due Plus up to 100% tax penalties for incorrect/failing to notify HMRC . 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? Tax points to watch out for

by James McBrearty on Jun 27, 2012

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Newly self employed? Tax points to watch out for Presentation Transcript