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Adam Hunt
Adam Hunt, Accountant
Category: Tax
Satisfied Customers: 357
Experience:  FCCA, FFA, FFTA
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I have several questions as I have just started working self

Customer Question

i have several questions as I have just started working self emplyed
JA: Are you filing as a sole proprietor or independent contractor?
Customer: what is difference pls
JA: Anything else you want the Accountant to know before I connect you?
Customer: I will be working as Uber driver
Submitted: 9 days ago.
Category: Tax
Expert:  Adam Hunt replied 9 days ago.

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.

Customer: replied 9 days ago.
On the 1st of Sept this year I started working for Uber as a driver partner.
I will be earning approx. £30,000 per anum.
Mileage for Uber = 2000 miles per month.Can you confirm the following.I am classed as Self Employed.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.This 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) ?NI this tax year.Self-employed National Insurance rates
The 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.
Expert:  Adam Hunt replied 9 days ago.

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-dep

This 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 rates
The 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?