13
Newly Self-Employed - The Basics Business Education & Support Team | Mayl 2010 | 1

[PDS] Selling your Work

  • Upload
    see

  • View
    372

  • Download
    1

Embed Size (px)

DESCRIPTION

Vance Crawley, Business Advisor, HMRC.Vance talks about registering as self employed in order to sell, the advantages of doing this, and how the process works.

Citation preview

  • 1. Newly Self-Employed -The Basics Business Education & Support Team |Mayl 2010|

2. How do I tell you that Ive started?

  • You can register in three ways.
    • By phoning the Helpline for the Newly Self-Employed on08459 154 515.
    • By completing a form CWF1.
    • Online atwww.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm
    • You must Register immediately!

3. What do I have to pay?

    • Class 2 National Insurance
    • Class 4 National Insurance
    • Income Tax
    • VAT (in some cases)

4. Class 2 National Insurance

    • Class 2 NICs is 2.40 per week
    • Paid by Quarterly Bill or Monthly Direct Debit
    • Small Earnings Exception is available if annual profits are expected to be less than 5075

5. Class 4 NICs 2010/11

    • 8% on taxable profits between 5715 and 43875
    • 1% on taxable profits above 43875
  • For Example: Profit 12,000
  • Less Lower Limit 5,715
  • Chargeable Amount 6,285
  • Tax Due: 6,285 @ 8% = 502.80

6. Income Tax Rates

  • Personal Allowance 6,475
  • Basic Rate 20% of taxable income up to 37,400
  • Higher Rate 40% above 37,401
  • Additional Rate 50% above 150,001
  • For Example: Profit 12,000
  • Less PersonalAllowance6,475
  • Taxable Income 5,525
  • Tax Due: 5,525 @ 20% = 1105.00

7. What exactly is a Tax Return?

  • A Tax Return is a record of your total income from all sources.For Example:
  • - Main Tax Return
  • - Self Employment Page
  • - Employment Page
  • - Land & Property Page

8. When will I get my Tax Return?

  • 6 April 10 to 5 April 11 Date of Starting
  • 6 April 2011 Tax Return or notice Issued
  • 31 October 2011 Filing Date for Paper Returns
  • and HMRC Calculation
  • 31 January 2012 Filing Date for Online Returns

9. Record keeping

  • There are three steps to remember.
    • Set up a system.
    • Keep your system up to date.
    • Retain your records for five years from the relevant statutory filing date.

10. Day to Day Expenditure

  • Direct cost/Materials
  • Fuel, MOT etc..
  • Wages
  • Trains and Taxis
  • Premises
  • Accountants
  • Interest
  • Telephone, postage and stationary

11. Registering for VAT

  • You must register for VAT if
    • your turnover of taxable supplies reaches, or is likely to reach the VAT registration threshold, currently 70,000.
    • you have taken over an existing business as a going concern which is already registered
    • National Advice Service 0845 010 9000

12. |May 2010| 13. Further help and guidance

    • HMRC Website:www.hmrc.gov.uk
    • Employer CD-ROM
    • Helplines and Orderlines
    • Workshops 0845 603 2691 orwww.hmrc.gov.uk/bst
    • Business Advice Open Days
    • Business Link:www.businesslink.gov.uk/taxhelp
    • Department for Business, Innovation and Skills:www.bis.gov.uk(previously known as BERR and DTI)