Going self employed.
 

Hi all, am changing jobs and going self employed wothin the next couple of weeks and would like some advice on the ins and outs of it.

How do I pay my national insurance and where do i get a tax code from so i can give to my employer so they can pay 20% of tax out of my wages.

Thanks.

Self-employment: checklist :thumb:

Cheers chick.

I registered as self employed a year ago, I went on the government website, it was pretty easy. They give you a "gateway" password thingy and that then allows you to take care of all your business on the website. Also worth noting that I heard nothing for the year after registering until last week- one year later! Start saving 20% of your earnings each week, then you'll have a 'kitty'to play with when the tax bill comes in. :thumb:

Have you thought about setting up as a Limited company?

Both your local Business Link and HMRC office have FREE Business Advisors.

They offer free one to one consultations to answer your questions as well as free seminars and workshops.

Business Link can also help if there are any start up grants available.

You need to check if Self Employment is right for you - ie if you are working for one person you may not be able to be self employed (it is not your choice - the Revenue have a list of criteria you must meet.)

As for a 'tax code' these are only issued to employees, not the self employed - I believe you mean the CIS card, which again you need to apply for from your tax office.

You must register your self employment within 3 months of starting or you could face a fine,and when you register (HMRC Website has the phone number) they will send the details to pay your class 2 NI.

Think VERY carefully about whether to be Limited or not - often if you are a Ltd company you will find insurance premiums etc much higher!

Good luck! :thumb: HTH

i'd say 30% to put "away" don't forget the NI.

Then also don't forget the payments in advance!!

But you could pay yourself dividends and avoid tax both PAYE and NI. If applicable can also avoid higher rate tax if income shifting is an option.