We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Potential 1st Self-employment

Options
Hi all,

Please be patient with me as I'm new to all of this!

I was employed full time as an employee on a contract basis for nearly 2 years. That contract has now ended and I am possibly looking to accept a new contract, this new one however is on a self-employment basis only.

I was looking into paying for an accountant but as the contract is only for four months, I was hoping some of my nagging questions could be answered here?

1 - If I take on this contract, I will have to relocate to London and pay for a room as I will be working on-site. My question is; does this fall under something I can claim tax relief on as this wouldn't be my permanent residence? I will be going back home most weekends.

2 - My PAYE role ended on May 31st, what percentage of my monthly "income" is a safe amount to put away for self assesment for both tax and NI. (Income will be in the lower bracket i.e. below £40,000). I've read that 25% of total income per month is a good start?

3 - Is it best to just register as a sole trader? As I won't be purchasing any goods to trade with, I'll just be providing a service so to speak.

4 - As well as renting a room whilst working on the contract, I will need to travel to and from the site. Is this also something I can claim tax relief for?

I will probably have more questions, but I would be super grateful if you experts could help clarify the above for me!

Thanks :beer:

Comments

This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.