Personal Taxation is a self employed

Personal Taxation is a self employed

SELF EMPLOYED

UK tax year runs from 6 April to the following 5 April. So, if we are talking about the tax year 2019/2020 it would start on 6 April 2019 and finish on 5 April 2020.

What tax do I pay as a self-employed person?

When self-employed you pay the following taxes to HMRC [Her Majesty’s Revenue & Customs], all collected at the same time:

  • Income tax,
  • Class 2 National Insurance contributions (NICs), which are set at a small fixed amount per week,
  • Class 4 National Insurance contributions, which are based on your business profits at the year end.

Tax and National Insurance when you're self-employed

When you’re self-employed, you’re responsible for paying tax and National Insurance on your income. It’s important to stay on top of all your records in order to work out how much you need to pay.

If you’re self-employed you’re entitled to the same tax free personal allowance as someone who is employed. For the 2019/20 tax year, the standard personal allowance is £12,500. Your personal allowance is how much you can earn before you start paying income tax.

Personal-Taxation-01-850x409
Personal-Taxation-02-850x409

TO THE FULL TAX YEAR

Did you work as an employee? please also provide us with the documents (P60, P45, P11D, Statement of earnings, etc.) required to prove your income so that we can reconcile your income from these two statuses.

It is your responsibility, duty, payslip to provide the income proofs every time you file your return. We can accept the missing income proofs for an additional £ 20.00 + VAT, thus extending the process by approximately 2-3 weeks.

FOR BUSINESSES

there is also tax-free income every year. This amount changes annually to £ 11,000 in 2016/17. Income below this level is not subject to taxation (however, it is important that if one has other income, the total earnings should be taken into account).

Above this amount, the tax will be as follows:

£ 0 – £ 32,000: 20%

£ 32,001 – up to £ 150,000 40%

From £ 150,001 to 45%.

Personal Taxation is a self employed

Personal-Taxation-03-850x409