help with Tax form please. self-employed...

Wiggynut

Hi all

(not sure if this is in the right forum thread???)

I've got my tax form and wanted to double check a few things before I submit it (online).

I'm self-employed (well, I only work for one company though! it saves them money and I need a job! ) I'm also a mature full time student.

The company I'm working for is full time (well, now it's four days a week) during the 'holidays' and I work one day per week during term time. (it's slowly going down the pan but hopefully it will last awhile yet!! )

This tax for is for last (tax) year (2008/09) and early last year I was on income support for 3 weeks (doctors sick note - I didn't claim sick benefits or housing benefit but wasn't working for a couple of months at that time) I then went back to the company I'd worked for a year before but where do I enter that I got income support on the tax form - I can't see anywhere in the help documents concerning this - I understand that it has something to do with tax?!

Also, I'm assuming I don't have to give my student loan/grants info right?
I've also got a bursary award of a £1,000 per year which to my knowledge is tax free.

Do I need to let them know that my brother gave me some money (so I could buy a decent computer as my course is computer graphic type, and he wanted to give me a gift as he went to Uni and he's happy that I've finally been able to go to). He's obviously paid tax on this so I don't think 'gifts' have to be declared?

I earned a total of £9,000 that year (will be a lot less this year) and by the calculations on the tax online site it says I have to pay £1,540 in Jan then six months later another £500.
(last year was great - I had more money that year than working full time! :cool:... think this year will be tighter though )

I also wanted to know about class 4 NI payments as I've read online that if you make a profit of under £5,000 then you don't pay that - but what do they mean exactly... is this after tax? so does that mean I wont be paying that?

when do I get the actual 'bill' and when can I pay... can I pay sooner or am I better off keeping it in the ISA (maybe I should look to see if any ISA's have a better interest rate - mine was one of the highest but then went rock bottom last year!)

Thanks for any help you can offer.

much appreciated.



:beer:

fengirl_2

The IS is only taxable if it was paid because of unemployment. It doesnt sound as if this was the case here. If it is taxable it goes in the taxable benefits section on the main part of the SA.
Your student loan/grant/bursary are not taxable, nor is the gift from your brother.
Class 4 is based on your profit, ie turnover less expenses. Is the £9k your profit or turnover? If it's profit, then you pay class 4 NIC on it.
Never pay before you have to - money is better off on deposit. You will get a statement nearer to 31 Jan.

Wiggynut

fengirl wrote: »

The IS is only taxable if it was paid because of unemployment. It doesnt sound as if this was the case here. If it is taxable it goes in the taxable benefits section on the main part of the SA.
Your student loan/grant/bursary are not taxable, nor is the gift from your brother.
Class 4 is based on your profit, ie turnover less expenses. Is the £9k your profit or turnover? If it's profit, then you pay class 4 NIC on it.
Never pay before you have to - money is better off on deposit. You will get a statement nearer to 31 Jan.

the 9k is just what I earned! I don't have any expenses or other outgoings (besides, rent, bills etc... nothing to do with work though)

thanks for your help
:A

fengirl_2

You must have expenses! Just sticking a figure of income in the self employed earnings section will look as if you have made it up! What is your business?

Wiggynut

fengirl wrote: »

You must have expenses! Just sticking a figure of income in the self employed earnings section will look as if you have made it up! What is your business?

I'm working for my old company as a freelance Photographic Retoucher.
I worked there for a year then left (others made redundant) but then went back to work freelance a couple of months later (the company is run from the bosses home now... like I said, it's slowly going down the pan )

so I just go to work as normal - invoice her my hours at the end of the week and get a cheque (she now pays by bacs).
I've got a spreadsheet and copies of all the invoices and so does she.

so I'm not sure how I can 'create' expenses from that! I walk to work.. occasionally take the bus but that's on an oyster card (london) so no receipts.




ps: I have my wages paid into a normal bank account and my student loans/grants/bursary paid into a student account with a different bank. so I can show statements etc which wont confuse the other funds with my work earnings.

fengirl_2

I would keep your head down over this - this does not sound like true self employment to me. Your employer is avoiding her responsibilities and HMRC would almost certainly require her to pay your tax and NIC.

Wiggynut

fengirl wrote: »

I would keep your head down over this - this does not sound like true self employment to me. Your employer is avoiding her responsibilities and HMRC would almost certainly require her to pay your tax and NIC.

when I spoke to the tax office last year to see if they wanted me to sign up as self employed they said not too - then they changed their mind 5 months later so I registered (got fined a £100 even though it was their fault it was 'late'!!)

so I'm registered as self employed... can't 'keep my head down' so to speak.

I just wanted to stay working as long as possible and I doubt she would have taken me back if I'd said no - plus I don't mind sorting my own tax as it's good practice for when I do start working freelance for other companies.

I know my employer is avoiding her responsibilities... she does that daily :rolleyes: usually with several bottles of wine!

I don't get sick or holiday pay and she doesn't have to pay NI contributions etc.

a job is a job and I just want to know the best way to fill in the tax form and get it sent off (well, submit it online that is) I'm not fussed if it blows up in her face as it's her choice but as long as I don't get into trouble as I didn't know it was such a mindfield... these sort of companies use a lot of freelancers!

Horace

Oyster cards aren't free - so put it down as a business expense and when you top it up get a receipt from the shop.

Other expenses - if you do work at your home - put down part of your electricity bill, if you use equipment then put that down.

Wiggynut

Horace wrote: »

Oyster cards aren't free - so put it down as a business expense and when you top it up get a receipt from the shop.

Other expenses - if you do work at your home - put down part of your electricity bill, if you use equipment then put that down.

I've only worked from home a couple of days and that's this year (not last tax year)
I also didn't realise that the student oyster card (which doesn't save me anything as I don't buy weekly travel cards so slightly pointless!) hasn't kept a history - yet I did register it with an existing oyster account (oyster cards are great but trying to get things to work online is impossible!)

I might have some receipts but I'd have to check to see if any of them are from last year - I literally only take the bus a couple of times a month as I prefer to walk (my only type of exercise right now) and the journey takes the same amount of time!

The equipment I would use at home is my computer - plus my electricity bill is not in my name and I've moved recently and it's included in my rent - so again not sure how I would be able to put that in next years tax bill.

I just figured that I would leave the expenses empty - I'll keep receipts for the oyster card from now on though (swop back to the 'normal' oyster card too)

I've joined a lot of online freelance groups but yet never really find any decent info - might have to have another google to get myself more clued up.

Thanks for your help guys - really appreciated.
I'll have a check through my online tax form and then hopefully I'll get to submit it this week and hopefully 'forget' about it until the time comes to pay the bill

:beer: