Query on Self Tax???

hel27n

Hello,

I have a full time job where I earn 24k per year before tax. I have started looking after computer systems for a few offices on a when needed basis.
I plan to charge £45 per hour but I cannot guarantee the hours I will work, if any.

I have been told I will need to apply for self tax & have been looking at the HMRC website but find it quite confusing so I hope you can answer a few questions.

1. Do I register for self-tax or register as a business? Perhaps both are the same?
2. Do I have to keep receipts for expenses? If so what am I entitled to claim for?
3. If I work at their office can I claim for expenses related to my home e.g. internet, heating, car payment (even if very small)?
4. If my mobile bill is an e-bill am I required to have paper copies?
5. Will this affect my Child Tax Credits?

All help would be much appreciated.

uware

Sounds like you have a small business on your hands... what do YOU want to do... do you see this as a future... or just a hobby.

do you need the money to live - or are you happy to plough it back in... and maybe look to really give this 'extra' business a go.

Talk to an accountant - someone who knows PAYE.. and accounts for small businesses.

hel27n

no I can never see me givin up my full time work to do this, just doing it for extra income, might not work out.

Advise please?

bargainhunter90

hel27n wrote: »

1. Do I register for self-tax or register as a business? Perhaps both are the same?
2. Do I have to keep receipts for expenses? If so what am I entitled to claim for?
3. If I work at their office can I claim for expenses related to my home e.g. internet, heating, car payment (even if very small)?
4. If my mobile bill is an e-bill am I required to have paper copies?
5. Will this affect my Child Tax Credits?

All help would be much appreciated.

When your all set up and ready to start your work register as self employed online its really easy and look into getting an exempt form for National Insurance for your self employed job depending on how much your income for that will be. You will still be paying your NI in your normal job. Keep detailed records of costs and income to help completing that self assessment later on.

1) the same
2) keep all your receipts and claim for whats a reasonable cost for your business
3) maybe a percentage ie 25% if you work at home using home heating and equipment
4) you can print out your ebill and yes paper is needed. Only claim business costs
5) maybe and maybe not depends how much you will earn (i dont know)

uware

but it's nice isn't it... £45 extra an hour... Imagine that clocking up... but you not doing the work... a little helper (who you pay £15 an hour).

Maybe it's just the way I see things...?

SUPERJULES

As a tax adviser I would advise you to contact your local tax office direct and make an appointment to see them, that way you can ensure you're doing everything coorrectly and all your questions are answered

There are fines involved for not registering for self employment so it's best to be on the safe side if that is the case.

HTH

tyllwyd

About the child tax credits - this is means tested so yes, you should expect it to affect the amount you receive. I'm self-employed, and the system for dealing with income from from self-employment is very clumsy - I have to tell them in the annual return in the summer how much I have earned in the previous tax year (even though I probably haven't done my tax return at that time). You can put in an estimate, and when you do your tax return notify them of the official figure.

I get very confused about how they calculate what credits they are paying me for what period - so if you earn extra money I would make sure you get proper advice on how it would affect your tax credits, and beware of overpayments.

tyllwyd

Oh, and you need to think about whether you are working as a sole trader or whether you want to set up a limited company - if you are considering a company, you will need to get some advice from a solicitor/accountant on the pros and cons. And if you are maintaining other people's IT equipment, have you thought about insurance, or making sure that you have a proper contract to say that you won't be responsible for costs if you crash the whole thing!

hel27n

hel27n wrote: »

Hello,

I have a full time job where I earn 24k per year before tax. I have started looking after computer systems for a few offices on a when needed basis.
I plan to charge £45 per hour but I cannot guarantee the hours I will work, if any.

I have been told I will need to apply for self tax & have been looking at the HMRC website but find it quite confusing so I hope you can answer a few questions.

1. Do I register for self-tax or register as a business? Perhaps both are the same?
2. Do I have to keep receipts for expenses? If so what am I entitled to claim for?
3. If I work at their office can I claim for expenses related to my home e.g. internet, heating, car payment (even if very small)?
4. If my mobile bill is an e-bill am I required to have paper copies?
5. Will this affect my Child Tax Credits?

All help would be much appreciated.

I have registered for Self Tax beginnig 1st March 2009. Does this mean that I have to do a Tax return for this month as the new finicaial year starts 1st April. I am confused as I know the online forms are sent in Jan????

Also I received a for to register for paying my National Insurcance by Direct Debit. What dos Class 2 mean?

fengirl_2

The tax year ends on 5 April, not 31 March, so you will have to self assess for 08/09 and you have until 31 Jan 10 to do this if you are doing it online. As you wont have completed a year's trading by then, you will need to estimate your profit. Returns are sent out in April, not January. If you want to do a paper return, you only have until 31 Oct 09 to send it in.
Class2 is the NIC's which self employed people pay. You will also pay 8% based on yur profits, along with your tax.