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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 15692
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have been in a job for 5 month now, earning £30.000 a year

Customer Question

Hi there, I have been in a job for 5 month now, earning £30.000 a year and I havent paid any taxes yet, as I its the first time I have been self employed. I saved up about £500 in national insurance and Im not sure how to pay it now. Also is the free tax amount of £12.500 be taken in consideration?
JA: Are you filing as a sole proprietor or independent contractor?
Customer: I am not sure about the difference
JA: Anything else you want the Accountant to know before I connect you?
Customer: Everything I wrote above
Submitted: 7 months ago.
Category: Tax
Expert:  Sam replied 7 months ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 7 months ago.

Hi

Im a bit confused as you say you are IN a job then state you are self employed - which is it ?

If truly self employed then you should register this with HMRC and then after 05/04/2020 you are asked to fill in a self assessment tax return and you declare your income and expenses and then the tax and national insurance you owe which you pay no later than 31/01/2021 -

You should be putting about 25-30% of your income away to cover tax and national insurance

Thanks

Sam

Customer: replied 7 months ago.
Hi Sam, I am working for a company as self employed. I have applied for my UTR number, but nothing ever came back. Therefor I have been working for 5 month and havent paid anything, which I would like to do now. How can I go about it?
Expert:  Sam replied 7 months ago.

Hi

if you work for just one company the likelihood is that you should be employed - can you tell me what sort of work you do - and what makes you feel you are truly self employed as there are strict laws on this under the employment status legislation but you can just ring HMRC and ask them what your UTR is (if you are meant to be self employed)

Thanks

Sam

Customer: replied 7 months ago.
I am a housekeeping Manager for a spanish company based in London. They have been paying me without my UTR so far....So you suggest that I need to call HMRC and ask for my UTR number. What will happen next? Am I in trouble?
Expert:  Sam replied 7 months ago.

Hi

Then you are not self employed as none of your duties would be up to you how and when they are performed and you have just one client - you should have sent up a direct payment scheme to run your own payroll through for tax and national insurance purposes

so close down the self employment position (phone HMRC) and then phone the Employer helpline to set up a direct payment scheme see link here re legislation

https://www.gov.uk/guidance/when-and-how-an-employee-operates-paye-on-their-employment-income

Thanks

Sam