How To Resolve the Myth Surrounding the Tax Season?

What You Need to Know this Spring When it Comes to Your Tax Finances

16:23 28 March 2013

If you work for yourself, or own part of a business you are self-employed. You have to file an assessment every single year for the tax season.  Some of the information you will need to know about in order to complete the assessment is how your business did with profits.

 

If you have earned any additional income, such as earnings from rental property to contribute to your total household income, you will have to submit that information to the HM Revenue and Customs as well. 

 

In order to see if you are indeed self-employed you should ask these questions to determine if you need to file a tax return.

 

• Do you have responsibility for losses and profits?

 

• Are you the top of the management team and responsible for how the whole business works?

 

• Can you hire someone on your own terms to do work?

 

• Do you go out and purchase the items required for the business to operate?

 

• Do you complete a job on set price no matter how much time you spend on the project?

 

• Do you work for a lot of different people frequently?

 

• Do you decide where, when, and what work you complete each time?

 

• Do you fix your own mistakes out of your time and budget?

Lastly, you can be working for someone else and be your own boss at the same time. Important Information to Know for Self-Employed about Taxes:

 

• You need to register with the HM Revenue and Customs that you are self-employed immediately.  Otherwise you’ll be assessed a fine.

 

• The two types of class contributions you will have to pay are Class 2, and possibly Class 4 if you earn over a certain amount of money.

 

• The VAT guideline is £77,000 for self-employment. You may wish to volunteer anyway because it could benefit your business.

 

Those are the basics, if you have further questions you can contact the HM Revenue and Customs.