Self Employed... what do i need to know?

InsideInsurance

Most people do their self assessment online these days, you register for access and then can complete it any time between April and January for the preceding Apr-Apr

The system instantly calculates what tax is due or potentially what refund is due (if your paying tax up front in some capacity - such as being both an employee and self employed).

You can complete the manual form and post i back, the deadline is earlier and then wait and hear what they have calculated your liability/ refund to be

aallank

InsideInsurance wrote: »

Most people do their self assessment online these days, you register for access and then can complete it any time between April and January for the preceding Apr-Apr

The system instantly calculates what tax is due or potentially what refund is due (if your paying tax up front in some capacity - such as being both an employee and self employed).

You can complete the manual form and post i back, the deadline is earlier and then wait and hear what they have calculated your liability/ refund to be

Thanks, does it look to you like i have calculated the car allowance right?

InsideInsurance

It looks the right ball park, will all depend on how many weeks a year he works - realistically it isnt going to be 7*52 when you take into account holiday, bank holiday, sickness etc

aallank

Thanks again for your help..

As you can tell we're complete newbies to this..

Can you tell me for HMRC, what is classed as 'profit' as i'm informing them of our change of circumstance and they have asked what our estimated profit will be. so i need to take expenses off.

total income (including fuel allowance) is £9256
minus the fuel allowance is £6600

do i now need to take off another £2000 that tax people are going to be paying back for mileage allowance?

so total profit will be £4600 ?? is this right?

(obviously all rough figures at the moment due to holiday etc)..

TIA..

Horace

One thought..if he is having to be self employed, is he free to work for other people? If not then he is an employee and not self employed and the HMRC will take a dim view of this.

Rather than speaking to the HMRC about changes in circumstances with regard to tax credits, speak to an account first to talk about the ins and outs of self employment before your OH registers with the HMRC as self employed, he decide to venture down this route. When he has gotten all the advice and decided one way or the other and after he has spoken to the HMRC about self employment, then speak to the tax credits section and explain the change in circumstances. I know that I havent given the tax credits an idea of profit - I told them that I would be working 37hr weeks and they work out the amount I should be paid from that, I do tell them that I have made a loss too (which I have as evidenced by my accounts).

aallank

Horace wrote: »

One thought..if he is having to be self employed, is he free to work for other people? If not then he is an employee and not self employed and the HMRC will take a dim view of this.

Rather than speaking to the HMRC about changes in circumstances with regard to tax credits, speak to an account first to talk about the ins and outs of self employment before your OH registers with the HMRC as self employed, he decide to venture down this route. When he has gotten all the advice and decided one way or the other and after he has spoken to the HMRC about self employment, then speak to the tax credits section and explain the change in circumstances. I know that I havent given the tax credits an idea of profit - I told them that I would be working 37hr weeks and they work out the amount I should be paid from that, I do tell them that I have made a loss too (which I have as evidenced by my accounts).

thanks for replying, sorry, what do you mean is he free to work for someone else?
This is just a part time morning job, so he could work for someone else during the day if you know what i mean? does that make sense?

aallank

does that make sense?
does anyone know what expenses i am allowed to take off before working out profit?
Many thanks..

orangeslimes

aallank wrote: »

does that make sense?
does anyone know what expenses i am allowed to take off before working out profit?
Many thanks..

Accountancy fees?

Oldernotwiser

Don't forget to check your motor insurance to see that you're covered for business use or to take out a different policy if not.

Mistral001

There have been several posts recently about self-employed courier drivers. Seems like a trend.