Self employed and taxes

By | 05/01/2016
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Working tax credit has been around for a bit now and it is not just for those employed it was introduced as a way of topping up people’s income this is different from Child Tax Credit which is aimed at families on low income this is not affected by this change, there is also a tax allowance for married couples make sure you check and see if it applies to you

It is also worth remembering that you could be entitled to both depending on your income. Please note this applies to those in the UK only, however no matter where you are keep in touch with Tax requirements.

working tax credits

There have been many changes with government policies and we all know they are always looking to save money by raising taxes or cutting benefits more often than not it is the people who need it the most who loose out.

Recently if you are not already aware there has been new changes to Working Tax credits for the self employed, to qualify you should be getting a wage or expect to get a wage for the work you do in regardless of your chosen profession.

So what is expected of the self employed

  • Make a profit or seek to make a profit
  • Be regular in your working pattern and be organized, keep accounts up to date, invoices and receipts.
  • Keep a record of the hours you work
  • Record of your earnings

Therefore if you are receiving or hope to get working tax credits you will need to keep good records, have a business plan or cash flow record, regular hours, right tools for the trade, keep with in the regulations regarding your trade for example if your a gas fitter are you registered, do you have insurance if applicable.

If you are not organized now I would suggest you do this as you can be asked for this at anytime and if you cannot show them any information requested by the Tax office you could have your credits stopped.  

tax calculator

Calculate your taxes

This is also the time of year for all those who do their tax returns online, you have till January 31st to complete your returns failure to do so will cost you a fine of £100 it is quite a simple procedure to do however if you do not feel confident you can always hire an accountant to take care of all your finances regarding the business

One important thing about doing your self assessment online is if you have previously had any self employment in the past and used this service.

You have to use your old user i.d  and password if you have lost this, go to the online service and select by post if you have changed your email address, you will also need to select a new password. 

 

If you would like to know more on doing your taxes online just click here however if your are a partnership you will need to buy software to do your taxes online

Just click on partnership and it will bring up a list for you to choose from, time is running out so best to get it sorted now

Need help to calculate your taxes why not use the free calculator it is simple to use if your not sure you can contact the Tax office for help

 

Are you looking to build a home based business with low risk and no major overheads then working online might just suit you.

 

 

2 thoughts on “Self employed and taxes

  1. Cherie Anderson

    Hi Katie,
    Thanks for the information about the tax credit. I notice you’re from Scotland…I wonder if the same applies to Canada. I will definitely check it out. I appreciate you pointing it out, I’m not sure I would have even thought about it!
    Cherie

    Reply
    1. Katie Post author

      Hi Cherie thanks for stopping by this information is for those in the UK not sure about Canada did you know you had them there, it is always worth taking a bit of time to check things to do with Tax if we get it wrong could be costly

      Reply

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