self employed PT - how to increase NET pay

adamshaw

Hi there

I am about to begin work PT self employed so will therefore need a SA tax return.

Is there anyway to pay less Tax / NI contributions legally?

I anticipate to earn C20k per annum ontop of current salary of C15k

HappyMJ

Increase your expenses. Spend more on business related items and you'll pay less tax.

adamshaw

Is the same if you just fill out a self assessment tax return as self employed like a contractor or will you have to setup a limited company to benefit from this?

Thanks

heretolearn_2

Ltd companies do their own tax returns. Don't complicate things is my advice. It is possible to be more tax efficient through a Ltd company once you get to a certain level of profit - about £15k a year as a rough guide - but then you have increased costs and regulation so not worth it if you are just working as a one-man band at this level.

You need to pay self employed NI, nothing you can do about that (unless you earn too little, but at the amount you quote, you have to).

Tax - you deduct your expenses from your income to find your profit - you only pay tax on the profit. Therefore higher expenses, lower profit, lower tax.

adamshaw

Is this the same when you fill out you self assessment tax return also.

So eg) income 1000, business expenses 300 - pay tax on 700?