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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15933
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I started working in April 2015. When will I need

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I started working for myself in April 2015. When will I need to pay tax for earnings from April 2015 - April 2016? If I have to complete tax return by Jan 31st 2016 what time frame of earnings does this cover?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Can you tell me exactly when you started being self-employed please. Did you register as self-employed with HMRC? What were you doing work-wise before that?
Customer: replied 1 year ago.
Thanks.I was full time employeed until November 2014 as a sales director, I was made redundant and disputed from dec 2014 feb 2015 then took some time off. I got a consultancy job with a Cyprus company in April 2015 billed april 14th got paid april 28th. I have invoiced them monthly since £7k per month no VAT added to the 7k.
I didn't realise I had to register as self employed until the end of the year when doing self assessment. I was already registered for self assessment for 2014 as my annual earnings were over 100k (slightly)
Now I'm trying to understand what I need to pay and when from the 7k I have earned per mth from April 2015 to now
Expert:  TonyTax replied 1 year ago.
Thanks. Since your self-employment didn't start until April, I would treat it as having done so on 6 April, the first day of the 2015/16 tax year. The earnings and expenses should be disclosed in your 2015/2016 tax return which will be issued to you after 5 April 2016. Read the notes here and follow the links to regiister as self-employed. The tax and NIC will be payable on 31 January 2017. Look here for information on how the tax payment system works. You need to register for VAT when your turnover hits £82,000 or will do in the next 30 days. Take a look here for more information. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Thank you.Please can you tell me, whether I will need to pay VAT for earning up to 82K or on everything I earn after 82K?I will register as self employed immediatelyPlease can you tell me how I show my earnings to the tax office? I am just thinking I might not be working for this client for much longer so in 2017 when I have to show and pay based on what I have earned is showing the money going into my account enough or do I need to get a letter from the client with the contract terms start and end date etc? basically how do I prove what I have earnt?
Expert:  TonyTax replied 1 year ago.
Can you tell me exactly what you do for the Cyprus compnay please.
Customer: replied 1 year ago.
Product Design and define go to market strategy
Customer: replied 1 year ago.
They are an early stage start up with a beta software product
Expert:  TonyTax replied 1 year ago.
You declare your self-employed income in the SA103 short or long pages:
https://www.gov.uk/government/publications/self-assessment-self-employment-short-sa103s
https://www.gov.uk/government/publications/self-assessment-self-employment-full-sa103f
Your invoices covering receipts and payments and your bank statements are your records. You only send them to the tax office if you are asked to.
The system is called self-assessment. You tell HMRC what you earned and what expenses you incurred. They choose whether to ask questions.
As you supply services as opposed to goods, the place of supply of those services is normally the country in which the customer is located assuming they are a business customer as opposed to a private individual customer. As your customer is a business, you don't charge VAT. The customer will account for VAT in Cyprus under the reverse-charge rules. This assumes you are dealing with the part of Cyprus controlled by the Cypriot government. The other part of Cyprus is not part of the EU and so VAT would not be chargeable in any event.
Read VAT Notice 741A below carefully to understand the VAT rules around the supply of services.
https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services/vat-notice-741a-place-of-supply-of-services#reverse-charge
TonyTax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank you, ***** ***** your help 5 stars

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