Tax Advice

something89

Hi,

I have been getting a bit worried about my tax payment.

I work for a supermarket part time (few hours a week), I do not earn enough from this to pay any tax; however they deduct tax if required.

Around June 2007 I started working in web design in addition to the supermarket job. I receive a sum every month into my bank account and I am assumed to be "Self-Employed" in this job. This job, I think I am meant to do my own tax. I haven't notified inland and revenue at all.

I have thought about going to see citizens advice unless anyone here has any helpful information.

Thanks

tinkerbell84

Oh dear. You must inform the Inland Revenue that you are working on a self-employed basis within 3 months of starting. (They'll fine you for that, i think 100 pounds).

Then you need to do a self assessment each year to ensure you are paying the tax you owe. Have you been keeping money aside to pay your tax and National Insurance?

BoGoF

As mentioned above you should have registered within 3 months and will likely get a £100 fine. You should register now (this can be done online at HMRC website). You will be sent a 2007-08 Tax Return so you declare your income up to 5 April 2008. If you are liable to tax this will be due 31 January 2009.

firstinflight

Is your web design work all for the same person, or is it on a freelance basis? If it's for the same person all the time, then there's a chance the revenue would deem you to be employed, rather than self employed

something89

I have enough money to pay a tax bill if required. From my calculations I am only around 1,000 over the tax allowance.

As mentioned above you should have registered within 3 months and will likely get a £100 fine. You should register now (this can be done online at HMRC website). You will be sent a 2007-08 Tax Return so you declare your income up to 5 April 2008. If you are liable to tax this will be due 31 January 2009.

What about my other job though?

All the web design is for one company.

If Inland and revenue see me as being employed and not self employed what would I do about the tax?

tinkerbell84

You need to declare all your earnings, and how much tax and NI you've paid in your part time job.

They'll then consolidate it and work out what you owe.

firstinflight

something89 wrote: »

All the web design is for one company.

If Inland and revenue see me as being employed and not self employed what would I do about the tax?

Have a look at: http://www.hmrc.gov.uk/employment-status/ to help determine if you are employed or self employed.

Basically, if you count as an employee in HMRC's eyes, then the company you do the work for is responsible for paying your tax and NI through the PAYE system. Any amount paid to you is deemed to be net of tax and NI, regardless of whether the company has passed that money on to HMRC or not.

so employee- it's the company's problem, and they will have to pay the tax out of their pocket.
or self employed- it's your responsibility and you'll have to find the money yourself