First Year

[Happi]

Hi,
I Started trading in Jan of last year but the contract ended March and Ill be doing more self employed later this year. I have been doing PAYE work in the meantime.
Can you point me in the right direction of what to do in this situation about tax.

Gross income was 4500.

thanks

Happi

[BudgetB]

When you say Jan of last year, do you mean 2009?

Have you registered as self employed with HMRC yet?

[elainec100@cheapaccounting]

are you self employed or a limited company?

[SteveSJ]

Hi there,

Basically you will have to add that income together with any other income earned in that particular tax year, when you have your final total, you then need to deduct your personal tax allowance (£6475) If you earned less than this and have been taxed then due will be due that tax back.

If you earned more than this then the basic tax rate is 20%, again this will differ dependant upon your total income.