First year self employed help

[Jordon]

Hi everyone I just need a few pointers, it's my first year as self employed I started in May. Do hmrc send you a tax return form or can I just fill the one in on their website? When does this become available to fill in?

How long does it take for them to reply with your tax bill after you've sent your return in?

Do you also pay your NIC's at the same time as your tax return?

And why does the return have to be away by Jan 31st when the tax year ends in April? [emoji21]


I'm really at one with being self employed but it's just doing my first tax return and I know it differs during your first year so any replies would be lovely. I just never seem to get time to ring hmrc and I know how friendly and helpful you all are xxx

 

[Jordon]

Sorry for the LONG post [emoji5]️ x

 

[squidgernetball]

Okay. You have lots of time. If you started in may, your tax return is due in for the end of January 2017, so your tax year would run from when you started in may until next April 2016. You then need your return in for Jan 2017 which is when your payment is also due. When you do your return online, you'll know then what you owe.

I don't know about NIC's as it's different now to when I was self employed.

Vic x

 

[Jordon]

Okay. You have lots of time. If you started in may, your tax return is due in for the end of January 2017, so your tax year would run from when you started in may until next April 2016. You then need your return in for Jan 2017 which is when your payment is also due. When you do your return online, you'll know then what you owe.

I don't know about NIC's as it's different now to when I was self employed.

Vic x

Thanks Vic I had been reading that it wasn't due until 2017 but I assumed it was a misprint [emoji37] It just seems wrong you know?

So I really don't have to send them anything in jan '16?
Apart from NIC's if they decide they want that then.

️Xx

 

[squidgernetball]

No as long as you've told them you're working self employed x

 

[Jordon]

No as long as you've told them you're working self employed x

Okay! [emoji4] I suppose I'll think about it again in some time then haha!

Just another thing, must I record paying myself a wage from the business profits?
Xx

 

[squidgernetball]

No. You pay tax on everything that's left over in the business so that is, in effect, your wage.

You tell the tax man your incomings, your out goings and what's left. You pay tax on that. You can use it as your wage but remember to put something by for tax. If the profit is under about £10,500 you don't pay any tax.

Vic x

 

[Jordon]

No. You pay tax on everything that's left over in the business so that is, in effect, your wage.

You tell the tax man your incomings, your out goings and what's left. You pay tax on that. You can use it as your wage but remember to put something by for tax. If the profit is under about £10,500 you don't pay any tax.

Vic x

Thanks so much! I've been reading articles and getting confused, I knew it was as simple as that but I kept reading things that kept complicating it all!! [emoji4] thanks a bunch! Xx

 

[Pollypocket85]

This is where I get abit confused. Surely you could keep paying yourself the profit so that the bottom line is never in profit? Then you wouldn't pay tax because it never looks like the business makes money. I don't intend to do this but it's just something I don't understand.

 

[HairbyAmy1]

I'm not sure if it's the same for everyone but I get a quarterly bill for my NIC. But think you can also do it by direct debit? And as long as you have registered as self employed, they'll send you reminders to do your tax return a few weeks before the deadline x

 

[squidgernetball]

This is where I get abit confused. Surely you could keep paying yourself the profit so that the bottom line is never in profit? Then you wouldn't pay tax because it never looks like the business makes money. I don't intend to do this but it's just something I don't understand.

If you're self employed and at the end of the year you've taken no money out of your business and you have a profit of £12000 you pay tax on it as it's over the taxable allowance of approx £10,500.

If you're self employed and you spend all the money made from your business every week, when you do your accounts, this money that you have spent will show as your profit - the tax man isn't interested if you've spent it or saved it, it isn't a business expense so it's profit and as such, if it's over approx £10,500 you'll pay tax on it. Paying yourself isn't a business expense.

Paying yourself is only a business expense if you're a limited company. You don't want to be a Ltd company until you're paying tax on about £15000 plus x

 

[Pollypocket85]

That's great thank you! You've explained that perfectly. x

 

[squidgernetball]

That's great thank you! You've explained that perfectly. x

Phew! X

 

[Jordon]

I'm not sure if it's the same for everyone but I get a quarterly bill for my NIC. But think you can also do it by direct debit? And as long as you have registered as self employed, they'll send you reminders to do your tax return a few weeks before the deadline x

They've never sent me a request for my NIC [emoji15] x

 

[NayMomo]

My accountant is good with things like that, they give me forms and then sort everything out for me, I also get insurance with them so that if I was ever searched for anything it would affect my earnings. I'd recommend getting a decent accountant because whenever I have any questions mine replies so quickly and is always helpful!
I also get my NIC through in the post and they give you a few months to pay it but again my accountant sorted that for me. then they let me know when they need everything by, super easy and makes me less nervous about things when I know theres someone who knows what their doing is handling everything for me

 

[AABxo]

They've never sent me a request for my NIC [emoji15] x

I was about to do a thread on paying NIC and ive been self employed since July, have you found out how you pay it yet? I'm the same as you I've had nothing from HMRC in regards to it!

 

[Jordon]

I think they send you a payment request in April xx

 

[jodiejones21]

Hey

I've been working part time for myself since Dec. I was working for a space room in my Mothers house. However i am now looking into renting a beauty room in a hairdressers fulltime.

just wanted to no is there anything i should no before i look into it?

Also how did everyone go about looking for a room, im thinking about sending local salon an email?

Thank JODIE

 

[hazelb]

I think they have changed the way NI contributions are collected.
I used to pay a basic amount of NI each month, then any additional ( based on my profit) was added to my tax bill when my tax return was done.
I think this is now changed, there is no monthly payment collected it is all collected in a lump sum as part of your tax bill

 

[Jordon]

I think they have changed the way NI contributions are collected.
I used to pay a basic amount of NI each month, then any additional ( based on my profit) was added to my tax bill when my tax return was done.
I think this is now changed, there is no monthly payment collected it is all collected in a lump sum as part of your tax bill

I wish it was still like that [emoji19]