I've been working for the past 15 years and have paid tax and NI as everyone else i.e through my pay slips at 22% or whatever it is. I set up my own business in June and informed the Inland rev straight away. All they have done is given me a form to complete to pay them around £10 per month for NI. My question is when do I have to pay them tax and fill in a tax return? My mate is a self employed carpet fitter and he reckons he pays his every January with a tax return. I have heard nothing from the Inland revenue and don't want to incur any fines. My accounts for the 7 months i've set up my business are all upto date and have kept 22% of all my profits to one side for my tax bill. Sorry for the rant but any advice by anyone in the know would be much appreciated. BTW I still have my job aswell so pay tax through PAYE.

 

has your accountant not discussed this with you?

 

I pay PAYE from my weekend job, and submit accounts for my self employed driving instructing. You should be keeping monthly accounts of all works and income along with all business related expenditure, then either pay an accountant to verify your profit/loss and submit it to the taxman or do it yourself, possibly even online. My accountant managed to get me a rebate last year

 

Because you only started in June you have not done a full tax year therefore nothing to pay yet.

You will need to submit accounts / tax return for the period June 07 - April 08 before the end of 2008, you will then get your tax bill to be paid before the end of Jan 09. You always pay (upto) 8 months after the end of the tax year in question.

Hope that helps

Kev.

P.S. Get a good Accountant, mine found me a rebate for my part time job even though I had enough profits to buy an old Porsche and keep EVERY receipt, it is suprising what you can claim for.

 

Yeah, I needed a new 32" computer monitor with Freeview for the bedroom

And my intake, filter, remap and uprated rear ARB were all essential repairs to my work vehicle

 

As Kev says but an accountant will give you the details if you use one which I say would be advisable not least because he can tell you what expenses can be claimed. Vehicles and mileage can be tricky at first.

I stand to be corrected but if you want the Tax man to calculate what you owe then you need to send him the details by end September 08. If you/accountant do the sums then you need to get your Return and cheque in by end Jan 09.

 

Also worth remembering that in your first year trading, not only will you have to pay the tax on the period covered by your 1st tax return, but you will also have to pay more on account for the forthcoming year ( this is based on what you paid for the year before, and is usually split into two lump sums, one payable at the same time as your 1st return, and one 6 months later ).

 

If you file your return online you can do it at any time up to the end of Jan and the IR will work it out for you, it is then payable by the 31st Jan. I normally do mine in the autumn as you know what the bill is going to be then a few months before you have to pay it.

 

Thanks for all the help I am not going to get an accountant as my profit from my self employment is only around 10K. I'll complete it myself online.The only thing that winds me up is driving a wrx and only being able to put 40p a mile through my business. The tax relief on this doesn't even cover the cost of my v power.

 

There is some useful information in the HMRC website
HM Revenue & Customs: Self Employed

Good luck

 

You can choose either to get a set rate of 40p/mile for first 10k, then 25p/mile for every mile over 10k,
OR
you can submit receipts for what you have actually used in relation to your business journeys and servicing (although it can get complicated as you may have to work out percentages of personal/business use)

Its up to you which you do, depending on which suits you better..

 

yeh seemed to complicated to calculate it Freak so I am keeping a mileage log and are using the 40p per mile.

 

No idea, sorry

 

So close

 

**** here we go .......

 

Infraction?

 

Bad the Infractor

This is clearly abuse of the Infraction system