Tax, self assesment,

[Kittycat]

I have just newly regsitered and my first mindees dont start untill april, my biggest fear is Tax, i have no idea how much i would take off, whatever i make, or if i could pay it mthly so i dont end up with a massive bill and the whole book keeping and accts :eek:
i work already part time at night and plan atm to keep that going untill my business can support me fully, but think that i might get a BR code for tax because i work part time.
No one takes u aside and shows u how or what to do, so atm i feel like i am in a dark hole & need shown the light :cool::blush:

[christine e]

I would suggest you put approx 25% away in an isa - tax is currently 20% and class 4 national insurance is 8% (this is on top of Class 2 national insurance) but remember it is only your profit that you will be taxed on

[sarah707]

Like Christine says the best place to put your tax / NI money is the highest rate cash ISA you can find.

Shop around on places like www.moneysavingexpert.com for the best rates.

If you earn above £7475 (after expenses - 2011-12 figure) you will be taxed at 20% on the money

If you earn above £7225 (after expenses - 2011-12 figure) you will be required to pay 9% NI on the money

You will only be taxed on the money you earn above these figures.

So, keep a close eye on your income and expenses and as soon as you reach about £7000 start putting 29% (29p in every pound) away every single week / month.

If you are earning a lot more than this (after expenses) they might ask you for money 'on account' for next years' tax bill, so you might need to save even more - you can find the figures on the www.hmrc.gov.uk website.

For help with working out your expenses there are some documents in free downloads at the top of the forum.

Hth :D

[christine e]

Like Christine says the best place to put your tax / NI money is the highest rate cash ISA you can find.

Shop around on places like www.moneysavingexpert.com for the best rates.

If you earn above £7475 (after expenses - 2011-12 figure) you will be taxed at 20% on the money

If you earn above £7225 (after expenses - 2011-12 figure) you will be required to pay 9% NI on the money

You will only be taxed on the money you earn above these figures.

So, keep a close eye on your income and expenses and as soon as you reach about £7000 start putting 29% (29p in every pound) away every single week / month.

If you are earning a lot more than this (after expenses) they might ask you for money 'on account' for next years' tax bill, so you might need to save even more - you can find the figures on the www.hmrc.gov.uk website.

For help with working out your expenses there are some documents in free downloads at the top of the forum.

Hth :D

Sarah, Elaine mentions in her post that she has a part time job so she needs to be carfull regarding her personal allowance

[MrAnchovy]

First of all, don't panic - there is plenty of help available, and if you don't start earning money until April the first deadline for submitting a tax return and paying any tax is 31 January 2014 (yes 2014) so you have plenty of time to prepare!

There are some helpful downloads on this site; for more general information try Business Link (http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805). HMRC also run local sessions for new businesses that are useful.

Self employed earnings are not affected by PAYE codes so don't worry about BR, but you will have to pay tax on all of your childminding profit so it would be a good idea to work this out roughly each month and put 20% by. If you earn more than £7,605 between April 2012 and March £2,013 you will also need to save for Class 4 National Insurance which is 9% of your profit over £7,605.

[Niknakpaddywak]

HOw do you know how much NI will need to pay?
You all seem to know so much...I wonder if I'll ever get the hang of it :panic:

[Chatterbox Childcare]

HOw do you know how much NI will need to pay?
You all seem to know so much...I wonder if I'll ever get the hang of it :panic:

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