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Employed, self employed and tax

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mic
Brolly Dolly



Joined: 09 Sep 2010
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PostPosted: 14:58 - 11 May 2014    Post subject: Employed, self employed and tax Reply with quote

Hi

So I'm employed full time. If I start doing something self employed, how would that affect my tax?
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Itchy
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Joined: 07 Apr 2005
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PostPosted: 15:21 - 11 May 2014    Post subject: Reply with quote

It doesn't.

You simply complete your tax return and pay what is due (+ self employed NIC I don't know how much it is these days). The year after they might think about altering your tax code for your wage slave job so they collect what they THINK might be due based on last year's results.

But you can reverse this with a phone call because they are collecting before it is due and therefore have no rights to do so no matter what they say.
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Spain 2008France 2007Big one 2009 We all die. The goal isn't to live forever, the goal is to create something that will. In the end, your life will flash before your eyes. Make sure it is worth watching.
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nowhere.elysium
The Pork Lord



Joined: 02 Mar 2009
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PostPosted: 17:38 - 11 May 2014    Post subject: Reply with quote

Holy fuck, where have you been hiding, Itchy?

Good to see you're still knocking about, mate.
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syl
World Chat Champion



Joined: 05 Dec 2005
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PostPosted: 20:31 - 11 May 2014    Post subject: Reply with quote

You have to fill in a tax return. You also have to pay class 2/4 National insurance contributions - you might be eligible for exemptions. You may also be able to defer if you pay lots of class 1 contributions through your employment.

You have to tell HMRC when you start or you can get a fine.

Read these two:

https://www.hmrc.gov.uk/startingup/
https://www.hmrc.gov.uk/working/intro/employed-selfemployed.htm
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gorillaonabik...
Nearly there...



Joined: 31 Jul 2011
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PostPosted: 00:51 - 12 May 2014    Post subject: Re: Employed, self employed and tax Reply with quote

mic wrote:
Hi

So I'm employed full time. If I start doing something self employed, how would that affect my tax?


A significant number of 'employees' turning themselves into contractors sign up to an umbrella company where their tax bills will be around 20% per year (no NI). However, this is a massive generalisation and, for example, my situation was very complex and an umbrella organisation didn't fit the bill.

The caveat is tax is incredibly complex and you need professional advice depending on your individual situation. The level of complexity is immense and this is just a starting point to give you an idea of levels. If, for example, you are earning well above a hundred grand or more per year, have multiple revenue streams, then an umbrella company is useless but your tax bill will probably be closer to 10% if certain elements are put into place.
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Itchy
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Joined: 07 Apr 2005
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PostPosted: 18:16 - 13 May 2014    Post subject: Reply with quote

nowhere.elysium wrote:


Good to see you're still knocking about, mate.


Short story, may recant at barbie, maybe...
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Robster
World Chat Champion



Joined: 16 Dec 2013
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PostPosted: 08:15 - 14 May 2014    Post subject: Reply with quote

Useful this thread is Useful
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Old Thread Alert!

The last post was made 12 years, 188 days ago. Instead of replying here, would creating a new thread be more useful?
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