self employed tax question?

peace800

Hi

Im setting up as a sole trader this month but im confused in relation to when i will pay my first tax amount and how much ill pay? Will i make my first payment in April next year? What if I earn less than or up to my personal allowance of £10000 by April 15, do I still pay some tax or do I pay once I start having an income totalling more than £10000? If so when do I make the tax payments for my first year and will I start paying national insurace immediately too?

Sorry for asking simple questions.

rustywallet

Hi, best thing to do is to phone up the self assessment office an (if you have not done so) tell them you are self-employed (you need to do this by law), they are pretty good (in my opinion) with answering questions.

This is what I know, but please ring and confirm with tax office. If you start work today (October 2014) then your tax year will finish April 2015. So you will file your tax return Dec 15 or Jan 16 if done online.

When I was self employed that is all I did for a while, until I reached a threshold (I earned more), then I had to pay some tax upfront in June/July. This I guess is so you don't have a huge tax bill.

But as I said, ring them up - they are generally quite helpful.

Good luck with your self-employment.

rustywallet

Another thing... you will get (or need to ask for) a code to file your tax return online.
The online form can help you work out what tax you owe in advance as you don't need to actually file it (send it) you can just take a look at what you will owe.