Magicfairywings

suewtt

I have just joined magicfairywings which is a company that sell childrens toys and i have been informed to register as self employed in the next 3 months and i was just wondering how much do i need to earn before i need to start paying tax and national insurance?
Also if anyone eles would like any info or to earn a few extra pennies give me a shout!(not sure if im allowed to put that bit so im sorry if im not)

mrsBagpuss

i registered as self employed several years ago, firstly I had to give th national insurance contributions a date for commencing working for myself then register for tax they send you loads of info and you complete a self assessment on line at the end of the tax year which is really easy.

Good luck with Magicfairywings

mrsBagpuss

sorry just realised I hadn't answered any of your queries
I started paing NI immediately (couple of pounds a week) I never earned enough to pay tax. I should think you'd still have your usual tax allowance and be able to offset any business expenses.

sammy115

Ring the inland revenue and tell them you are self employed. They will send you out all the info and included in that pack will be a form to pay self employed NI contributions which should be paid weekly by direct debit. However, if you earnings are likely to be less than about £5,000 per annum then you can tick a box and defer NI payments for at least a couple of years.

Then the inland revenue will send you a self assessment form for you to complete for any earnings that you will have earned from the start of self employment to the end of the tax year 5th April 2009. Remember that any 'profits' - don't forget to keep receipts for any expenses you incur whilst carrying out self employment ie telephone calls, petrol, stationary etc and deduct these expenses from any earnings to get profits - are taxed AFTER you have deducted your personal allowance of £5,435. Any profits after this allowance are taxed at 20% plus 8% NI. This will then need to be paid over to the Inland Revenue by January 2010.

Tallymanjohn

I don't think you can defer Class 2 NICs - it's only Class 4 (the higher income bracket contributions). If you're just starting out, and you don't have any other earnings on which you might already be paying National Insurance, then you need to register as a low earner and you will need to pay Class 4 contributions - £2 a week last time I checked. There are lots of sites that give you specific information such as business link - http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858808&topicId=1073867930&r.l2=1073859218&r.s=tl. It may also be useful to see if your local tax office runs free half-day seminars for newly self-employed - they give lots of info on how to keep records, what you can claim for against tax etc. - they really are helpful these days.