Confused on tax?

mancitychick

Sorry if this isn't the right board. In 2006-07 I earn't 7k, however this was all earnt from 1st Dec 06 to 31st March 07.

I am self employed so I should shortly be receiving my 1st tax return to complete. How will I be taxed on the above amount, will it be

0% on the first 5,035 and then 10% on the remaining 1965

or have I got this completely wrong?

I know HMRC will work tax out for me, I just am trying to get an idea how much I am looking at having to pay.

For info April 06-dec06 I was not working - a stay at home mum supported by hubbys wages.

Thanks.

Bean_Counter

First thing that you need to think about is whether you have any qualifying expenses that you can offset against your earnings and hence reduce any tax that might end up being payable.

If you let me know what you were doing, that might give us some ideas.

Also, are you registered with the Inland Revenue as self-employed? Have you been paying any class 2 national insurance contributions?

mancitychick

Yes I am registered and are paying Ni contributions. It is kind of admin work (plus a big one off job for my dads co - sorting out his office, probably a ton of horrible filing data entry etc!)

Say I had no expenses ( probably have, stationary etc.) and the 7k was pure profit would the tax be like I think it is in my first post or not?

Cheers.

Bean_Counter

Hi,

If you had no expenses to offset, and assuming that you had no other income, then what you said in your original post of 0% on the first 5,035 and then 10% on the remaining 1965 would seem to be correct.