Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi I am one of the experts. Please ask all question in one go so that i can reply all of them at once. And please reasonable so do not ask too many of them as this chat is in actual for one question.
Answers are given below:
When to I need to register as self employed (search engines tell me by October of next year ie 2nd tax year) is that correct.
Answer: No you should register now, from start of business you have 3 months to get registered. You can register using this link, https://www.tax.service.gov.uk/shortforms/form/CWF1ST?dept-name=CWF1&sub-depThis tax year.Monthly income approx. £2500 x 7 months (September to March 2020) = £17500.Am I correct in the following assumptions for this tax year.Earnings = £17500 minus personal tax allowance £12,500 = £5000 minus mileage allowance (45p per mile first 10,000 miles then 25p ) = £5500 leaves £-500 (I am therefore not liable to pay any Tax this Tax year) ?Ans: Yes if 4500 for first 10k and then you have got £1000 so total is £5500 thats means loss of £500 so no tax is payable under such situation.
NI this tax year.Self-employed National Insurance ratesThe Class 2 National Insurance contribution is a fixed amount of £2.95 a week. It is only charged if your annual profits are £6,205 or more. Class 4 NICs are only charged if your profits are £8,424 or more a year.
Ans. For 2019/20 tax year, these are £3 per week Class 2 for more than £6365. Class 4 is 9% is more than £8632 - £50k and 2% from £50k onwards.
Hope I have now answered your question?