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