Cutting tax

Cutting tax

We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Potential 1st Self-employment

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

Welcome!

It looks like you're new here. Sign in or register to get started.

Categories

  • All Categories
  • 347.2K Banking & Borrowing
  • 251.6K Reduce Debt & Boost Income
  • 451.8K Spending & Discounts
  • 239.5K Work, Benefits & Business
  • 615.4K Mortgages, Homes & Bills
  • 175.1K Life & Family
  • 252.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support 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.