Newish Business

Pere_Ubu

I have a newish business (10 months old) what I want to know is as I'm self-employed is all my profit classed as my salary? Therefore I pay NI and Tax on this or is it just what I take. Have asked the tax helpline but they were not sure.

Tallymanjohn

You pay tax on any actual profit - as a small business, & assuming you're a sole trader this would be treated in much the same way as PAYE as far as rates are concerned, & if you fill in your tax return before end of September the tax office will work out the figures for you. As far as NI is concerned, you should have had the option, when you first set up, to pay a set amount (can't remember which 'class' it is) but I think it works out at £2 a week. If, like me, you also do a small amount of PAYE work, you can initially opt out of paying NI on self-employed earnings & just use your PAYE earnings.