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Stockport college presentation

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Stockport college presentation

  1. 1. Stockport College Accountancy service Taxes for the self employed
  2. 2. Stockport college <ul><li>Six Steps to getting it right </li></ul><ul><li>National Insurance </li></ul><ul><li>FAQs </li></ul><ul><li>Tax and accountancy help </li></ul>
  3. 3. 6 Steps to getting it right <ul><li>Register as self employed with HMRC </li></ul><ul><li>Inform the Tax Credits office </li></ul><ul><li>Implement a bookkeeping system </li></ul><ul><li>Put money aside to pay your tax </li></ul><ul><li>File your tax return on time </li></ul><ul><li>Pay your tax and NI on time </li></ul>
  4. 4. Register as self employed <ul><li>You MUST register as self employed within three months of commencing otherwise penalties will be charged. </li></ul><ul><li>Call HMRC on 0845 915 4515 </li></ul><ul><li>Penalties between 30% and 100% of any unpaid tax may be charged if you do not register </li></ul>
  5. 5. Contact Tax Credits Office <ul><li>Call HMRC Tax Credits office on 0845 300 3900 </li></ul><ul><li>Failure to advise HMRC of a change in circumstance could lead to you being underpaid or even overpaid </li></ul>
  6. 6. <ul><li>It is your responsibility to keep full and accurate business records </li></ul><ul><li>An accounts ledger </li></ul><ul><li>Computer spreadsheet </li></ul><ul><li>Basic bookkeeping software </li></ul><ul><li> **** KEEP ALL RECEIPTS **** </li></ul>Implement a bookkeeping System
  7. 7. Put money aside to pay tax <ul><li>First £6,475 taxable income 0% </li></ul><ul><li>Next £37,400 at basic rate of 20% </li></ul><ul><li>Other income may affect the tax you pay </li></ul><ul><li>Class 4 NI on profits over £5,715 at 8% </li></ul>
  8. 8. File your tax return on time <ul><li>If you are newly self employed (after 5 April 2011)… </li></ul><ul><li>First tax return issued April 2012 </li></ul><ul><li>Submission deadlines </li></ul><ul><ul><li>Paper return – 31/10/12 </li></ul></ul><ul><ul><li>File by Internet – 31/01/13 </li></ul></ul><ul><li>Failure to file on time means you could be liable to a £100 late filing penalty </li></ul>
  9. 9. Pay your tax on time <ul><li>For tax returns issued in April 2012 </li></ul><ul><li>Tax payment due in full by 31/01/13 </li></ul><ul><li>Automatic 2.5% interest charge on late payment from 01/02/13 </li></ul><ul><li>5% surcharge at 28/02/13, then every six months until paid </li></ul>
  10. 10. National Insurance <ul><li>Two classes of National Insurance for self employed </li></ul><ul><li>Class 2 – £2.50 per week (from 6 April 2011) </li></ul><ul><ul><li>Paid by Direct Debit monthly </li></ul></ul><ul><li>Class 4 – 8% of profits over £5,715 </li></ul><ul><ul><li>Added to your annual tax bill </li></ul></ul>
  11. 11. Frequently asked questions <ul><li>Answers are found in your pack </li></ul><ul><li>What expenses can I claim against my tax? </li></ul><ul><li>I have been told that to reduce my tax bill I can pay my spouse for assisting me. Is this possible? And how much can I pay them? </li></ul><ul><li>I have just bought some new clothes for work. Can I put this cost through my accounts? </li></ul>
  12. 12. TWD Accountants <ul><li>TWD Accountants will offer: </li></ul><ul><li>End of year accounts and tax return </li></ul><ul><li>A complimentary year’s access to our online bookkeeping software TWD Online. (Usual price is £24.99). </li></ul>
  13. 13. TWD Online
  14. 14. TWD Online continued...
  15. 15. What’s the catch? <ul><li>There is no catch </li></ul><ul><li>Fixed Fee service </li></ul><ul><ul><li>£222 inc VAT is all you will have to pay </li></ul></ul><ul><li>NO ongoing commitment </li></ul><ul><ul><li>In April 2013 you choose if you want to retain TWD there is no obligation or charge if you decide not to </li></ul></ul><ul><li>FULL professional accountancy service </li></ul><ul><ul><li>You get the same service as all clients </li></ul></ul>
  16. 16. What next? <ul><li>On registration, TWD will send you a welcome pack within the next 4 days. </li></ul><ul><li>You have immediate access to telephone support and advice for free. </li></ul><ul><li>TWD will deal with your accounts and tax when required. </li></ul><ul><li>To apply, complete the form in the pack </li></ul><ul><li>Or call on 0800 093 9433 </li></ul>

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