please can someone explain this to me?

flick24

Hi,

My partner is registered self employed after starting his own business it was only going for a few months and no profit was made do you still need to pay national insurance when self employed and does he still not have to pay tax if no income was made.

Now he is due to begin working under the cis scheme so does he have to pay the 20% tax, this work is only temp so if he doesn't earn over the thresehold does he still need to pay this 20%....if so when do the self employment declarations have to be done oct?

asajj

http://forums.moneysavingexpert.com/forumdisplay.php?f=22

Angry_Bear

flick24 wrote: »

Hi,

My partner is registered self employed after starting his own business it was only going for a few months and no profit was made do you still need to pay national insurance when self employed and does he still not have to pay tax if no income was made.

Self employed people pay either Class 2 NI contributions if their profits are £5,965 or more a year or Class 4 if £8,060 or more a year.
If he made less than £5,965, he won't have to pay any - but I'm not sure if he has to do anything about it (best bet is to call HMRC). You used to have to fill in an exception form, but that was made obsolete on 6th April this year.

Now he is due to begin working under the cis scheme so does he have to pay the 20% tax, this work is only temp so if he doesn't earn over the thresehold does he still need to pay this 20%....if so when do the self employment declarations have to be done oct?

Normally, he will pay tax as if he will earn the same every month of the year, and at the end of the financial year HMRC will work out how much he has paid and should have paid overall and issue him with a refund where necessary.
If he hasn't done so already, he will have to register for self-assessment with HMRC who will send him details to fill in the forms. If you do it online you have until 31st Jan to file for the previous financial year (so until Jan 16 to file for Apr 2014 - Apr 2015), if you do it on paper you have to do it by the end of October. You'll have to pay any tax owed by the 31st Jan as well.

If he already has all the details now, he can fill it in now and get it over with - there's no "earliest" deadline.