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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5029
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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At the end of February 2013 I finished my permanent employment

Resolved Question:

At the end of February 2013 I finished my permanent employment and on the 17th March 2013 I began as a self employed person with a completely different company. I need to know firstly how much money do I have to earn before I pay tax. I do not pay national insurance contributions because I am 67 and in receipt of state pension. Do I have to register as self employed with Inland Revenue especially if my income from this job is under the threshold for tax?
Submitted: 3 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 3 years ago.
Hello and welcome to the site. Thank you for your question.

You have to register with HMRC for self assessment if you are self employed.
More information on this is explained under "Who needs to complete a tax return here

http://www.hmrc.gov.uk/sa/need-tax-return.htm


You can register online. Here is a link to register for self assessment

https://online.hmrc.gov.uk/shortforms/form/SA1?dept-name=&sub-dept-name=&location=43&origin=http://www.hmrc.gov.uk


Your personal allowance for tax year 2014-15 is £10,500. Although you receive state pension gross, it is taxable income and your personal allowance would cover it.

As an example, if your total income including state pension was £18,000, then the first 10,500 would be tax free and the rest taxed at 20%

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

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