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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15606
Experience:  International tax
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Thanks for your help Tax Robin, I set up as self employed 20th

Resolved Question:

Thanks for your help Tax Robin, I set up as self employed 20th April 2013 ,please can you tell me the current Tax thresholds and amounts for Tax and class 2 NI and when do I need to make my first self assessment return.Are the online accountants ok to use for my simple returns as I want to do it as cost effectively as possible and not sure how complicated it is for me to do it myself. PS does any inheritance from my Grandmother have to be shown and will I be taxed on it? Cheers Andy
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
You pay Class 2 National Insurance contributions when you are self employed at a flat rate of £2.70 a week.
If you earn less than £5,725 per year you can apply for a Certificate of Small Earnings Exception and not pay Class 2 National Insurance contributions.
The inherited amount is taxed on the estate not you.
Customer: replied 3 years ago.

thanks for your reply, regarding the first questions



I set up as self employed 20th April 2013 ,please can you tell me the current Tax thresholds and amounts of Tax and when do I need to make my first self assessment return.Are the online accountants ok to use for simple returns as I want to do it as cost effectively as possible and not sure how difficult it is to do myself.


 


Kind Regards.. Andy

Expert:  TaxRobin replied 3 years ago.
Hi,
You can use an online accountant, I cannot advise a specific but if you feel comfortable completing your information that way then yes.
Each April or May HM Revenue & Customs (HMRC) will send you a letter telling you to complete a tax return or a paper tax return. The tax year runs from 6 April to the following 5 April. Your online tax return must reach HMRC by midnight on 31 January. So for the 2013-14 tax year, the deadline for online returns is midnight on 31 January 2015.
For 2013-14, the main rates of income tax will be the 20 per cent basic rate, the 40 per cent higher rate and the additional rate will be reduced from 50% to 45%.
For 2013-14 the personal allowance for those aged under 65 will be set at £9,205 and the basic rate limit at £32,245.
After you see what your earnings are after allowed business expenses you will then know better what your tax will be.
Here are the tax rates and bands for 2013-14:

http://www.hmrc.gov.uk/rates/it.htm#2a
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