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Potential 1st Self-employment
Amylittles
Posts: 5 Forumite
in Cutting tax
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:
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:
0
Comments
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Mortgage started 2020, aiming to clear it in 2026.0
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MovingForwards wrote: »
This is a helpful starting point.
Thanks, I've had a look through all HMRC material before posting
My questions are oddly specific haha0
This discussion has been closed.
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