Self employed and PAYE, equivalent rates...

Hammyman

Claim everything. Every stamp, every envelope, every staple.

Hammyman

no-oneknowsme wrote: »

Dont HMRC ever query someone who is self employed yet paying no tax?

Although to be honest , after reading your post Hammy I feel a little better.

My Hubby is a self employed taxi driver and so all his earnings are cash earning every penny of which is accounted for and yet when I was doing his end of year sums the other day it transpired that although he has a decent enough turnover , by the time his allowable expenses are deducted his profit was just level with his personal allowance which means he only has to pay a tiny amount of tax and class 4.....

Even though its all above board I was worried incase HMRC frowned upon the fact that he is working 30 hours per week yet has such a low profit.

Suppose with the price of diesel and allowing for depot rent/radio hire fee's of £90 per week , a lot of drivers are going to be in the same situation.

As long as you keep an honest set of books and have receipts and paper evidence of everything, they can't frown upon it or question it even though it annoys the living hell out of them. What they forget is the tax laws are a two way thing and as they'll screw you over as much as possible because they know they're answerable to no-one (I'm still waiting for a tax refund after 3 years with nothing but excuses as to why they can't pay me even though they admit they owe me) I have absolutely no qualms whatsoever of using every legal means I can to avoid paying tax.

Tax Credits may be a completely different kettle of fish but there's probably millions of small businesses and sole traders barely breaking even over the past couple of years. I've just done the accounts for this last tax year and turnover is £4k down on the previous year even though sales figures are up purely down to the fact people are buying low priced older stuff rather than nearly new ex-display stock at 2-3 times the price.

Russe11

So getting £10 a hour classed as selfemployed is the near min? I can qualify for tax credits based on last years taxable income, but I don't want to be relying on that.

Hammyman

Yes if you're providing only your time with no other costs involved. You will have other costs.

jadex

Russe11 wrote: »

So getting £10 a hour classed as selfemployed is the near min? I can qualify for tax credits based on last years taxable income, but I don't want to be relying on that.

based on the 140% rule, wouldn't it be £8.40 ?
£6 * 1.4 = £8.40

Russe11

well that maybe so.