being self employed

[EllieG]

I dont know if this is in the right section? I just wondered if anyone knew what is the difference between being self employed, and employed (iykwim). I just got myself a new job working for a charity, as a development officer, but its on a self employed basis, and i dont know where to start! I know i have to sort out my own NI and tax contributions, but how do i go about it? How often do i pay my tax and NI contributions? It is working primarily from home which is fantastic for me, but its all so new and quite scary

 

[paradysso]

phone inland revenue, tell them ur self employed, they will then set up to send u a self assesment tax return each year, which means paying ur tax in one go but u set up a direct debit to pay NI each month or quarter.

good luck. i been self employed since having baby 1

 

[EllieG]

Thanks for that, are there any benefits ( apart from the obvious) to being self employed?

 

[Sherlock]

It depends. You can claim certain things but you really are better off talking to the IR and reading up on what you can claim for via their websites and other info. It varies. They can send you an info pack

Also depending on how much you earn etc, you might find it easier to take on an accountant. Filing your own tax return is pretty straightforward, you just need to be organised. But an accountant can make life a lot easier and explain all you need to know.

Just remember that in the first year you should set aside some of your earnings each month to pay the tax after you fill your return in. Otherwise you'll have to find a lump sum at the end of it and its not always easy. I'd just transfer a set amount into a savings account each month.

Don't forget you don't get paid holiday or paid sick pay etc.

 

[paradysso]

u can claim tax rebates on things like the electric u use in your home for business use, like if u use pc/ lighting etc

also if u use your car for business use u can claim 44p per mile u drive.

you will find all this in the pack they send u, also talk to business link there really nice and helpful

 

[EllieG]

Thank you very much, both of you, you have been really helpfull

 

[kalia]

Let HM revenue and customs know that you ae self employed as soon as possible. OH waited until his return forms for the financial year were due so he got charged £100.
This website should tell you everything and more:
http://www.hmrc.gov.uk/selfemployed/
The best people to talk to might be your coworkers as they'd be in the same situation as you.

Congratulations on the new job