Newly self employed,Where do we start!!

Danni1979

Hi all i'm really hoping someone can give me some advice about tax.
My partner will be becoming a Hackney (taxi driver) and we havent got the first clue about how the tax system works and i've had a lookie on the tax website and i am totally lost.
Bills which would be to do with his working would be fuel,loan for a vehicle,radio rent,car insurance,mot etc....
What of these would be taxable and how does the tax system work as some people have mentioned they get tax back?? How do you know what amount to pay and how much to put aside each month?
Any help is much appreciated.
Hugs
xx

LittleVoice

His expenses of operating his business are all tax deductible – that is they will be deducted from his earnings (takings/fares) before those earnings are subject to tax.

Go to http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.shtml and download the registration document and follow the instructions as soon as he actually begins self-employment. There is no point in doing this before he begins the work.

Keep careful records in order to be able to complete the self-assessment form. Look at the form now so that you understand what is required.

Regarding claiming tax back - has he been paying under the PAYE system this year (that is since 6 April 2007)?

Danni1979

Thanks for that Little voice,no he hasnt been on the PAYE system as hes been my carer for the past couple of years,and thank so much for expliaing it so we can understand it,lol
Hugs
xx

regularsaver1

Its good you are querying what to do.

I saw someone today who has worked as a taxi drive for 2 years earning £600 a week and he said he hadn;t paid any tax because "he hadn't got round to sorting it"

Not sure if I am supposed to report that?!?

monkeymax

Regular, you should report any known misfailing of an individual in regards to tax. You can do so through - 0800 788 887 - lines are open Monday to Friday 8am- 8pm and sat/sun 8am - 4pm. It is totally confidential and we will take any query no matter how small
Remember, these people are breaking the law, it takes nothing for them to phone our helpline or visit our web page and sort out their status.
I think 2 years is avoidance not laziness.
PAYE have to pay tax as its earned, why shouldn't SE?

regularsaver1

I have - as anything could come back to me as failiure to report

defo thinks its more than laziness as he laughed

Bean_Counter

Danni1979 wrote: »

My partner will be becoming a Hackney (taxi driver) and we havent got the first clue about how the tax system works and i've had a lookie on the tax website and i am totally lost.

Hi Danni,

You could also have a look at the government's business link website for some information - link here.