stockport college presentation
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Stockport College Accountancy service
Taxes for the self employed
Stockport college
Six Steps to getting it right
National Insurance
FAQs
Tax and accountancy help
6 Steps to getting it right
Register as self employed with HMRC
Inform the Tax Credits office
Implement a bookkeeping system
Put money aside to pay your tax
File your tax return on time
Pay your tax and NI on time
Register as self employed
You MUST register as self employedwithin three months of commencing otherwise penalties will be charged.
Call HMRC on 0845 915 4515
Penalties between 30% and 100% of any unpaid tax may be charged if you do not register
Contact Tax Credits Office
Call HMRC Tax Credits office on 0845 300 3900
Failure to advise HMRC of a change in circumstance could lead to you being underpaid or even overpaid
It is your responsibility to keep full and accurate business records
An accounts ledger
Computer spreadsheet
Basic bookkeeping software
**** KEEP ALL RECEIPTS ****
Implement a bookkeeping System
Put money aside to pay tax
First £6,475 taxable income 0%
Next £37,400 at basic rate of 20%
Other income may affect the tax you pay
Class 4 NI on profits over £5,715 at 8%
File your tax return on time
If you are newly self employed (after 5 April 2011)…
First tax return issued April 2012
Submission deadlines• Paper return – 31/10/12• File by Internet – 31/01/13
Failure to file on time means you could be liable to a £100 late filing penalty
Pay your tax on time
For tax returns issued in April 2012
Tax payment due in full by 31/01/13
Automatic 2.5% interest charge on late payment from 01/02/13
5% surcharge at 28/02/13, then every six months until paid
Two classes of National Insurance for self employed
Class 2 – £2.50 per week (from 6 April 2011)
• Paid by Direct Debit monthly
Class 4 – 8% of profits over £5,715 • Added to your annual tax bill
National Insurance
Frequently asked questions
Answers are found in your pack
What expenses can I claim against my tax?
I have been told that to reduce my tax bill I can pay my spouse for assisting me. Is this possible? And how much can I pay them?
I have just bought some new clothes for work. Can I put this cost through my accounts?
TWD Accountants
TWD Accountants will offer:
End of year accounts and tax return
A complimentary year’s access to our online bookkeeping software TWD Online. (Usual price is £24.99).
TWD Online
TWD Online continued...
What’s the catch?
There is no catch
Fixed Fee service • £222 inc VAT is all you will have to pay
NO ongoing commitment • In April 2013 you choose if you want to retain TWD
there is no obligation or charge if you decide not to FULL professional accountancy service
• You get the same service as all clients
What next?
On registration, TWD will send you a welcome pack within the next 4 days.
You have immediate access to telephone support and advice for free.
TWD will deal with your accounts and tax when required.
To apply, complete the form in the pack
Or call on 0800 093 9433
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