Self employed for 6 months, what do I need to do?

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SamLewis

Free Member
Sep 7, 2012
15
1
Hi

About 6 months ago I trialed for a self employed commision based job, I was not told it was self employed until after my first month. I was getting paid about £200 a week + commission which wasn't alot. After about 2 months my manager signed a contract with me saying the company will give at least a months notice if it wishes to terminate my role and increased my base rate to £300 a week.

At this point I told my manager I wasnt registered as self employed, he said to leave it with him and he will get his accountant to tell me what to do. I still havent registered as self employed so I mentioned it again to my manager and hes going to go through everything with me next week, but incase he doesnt what should I be do?

When I first started around 6 months ago I only took in around £800 per month im now taking around £1400-£1600.

Thanks for any help
 

STDFR33

Free Member
Aug 7, 2016
4,711
1,269
I'll ignore the employment status and focus on the compliance.

You need to register for self assessment.

You will complete a self assessment tax return every year, and the deadline is 31st January.

You will pay income tax, class 2 national insurance and class 5 national insurance depending on earning levels throughout the year.
You should set money aside every month to put towards your tax liability.
 
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SamLewis

Free Member
Sep 7, 2012
15
1
You will complete a self assessment tax return every year, and the deadline is 31st January.

You will pay income tax, class 2 national insurance and class 5 national insurance depending on earning levels throughout the year.

Hi thank you for replying. Is the year a calender year? Do I calculate what I've earned up until December the 31st and submit it in January?

Also whats class 5?

Thank you
 
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STDFR33

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Aug 7, 2016
4,711
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Sorry should read class 4, not 5!

No, the tax year runs from 6th April to 5th April.so for the tax year ending 5th April 2016, the tax return must be submitted by 31st January 2017.
 
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SamLewis

Free Member
Sep 7, 2012
15
1
Ok, So I was employed from April to December 2015 with a different company who paid me through paye, my taxes/ni came out automatically. I have just one payment of £800 self employeed which was between 6th April 2015 to 5th April 2017. How do I declare this? Thanks again.

Edit ----

I have just checked my statements, and my first payment of being self employed was actually received on the 7th of April, so does this mean I submit before 31st January 2018?
 
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[email protected]

Free Member
Jan 5, 2016
189
32
Sam - just call HMRC and tell them you're now self employed, as of 7th April and that you'd therefore like to register for a tax return. They will send you a UTR (unique tax reference) which you'll need in order to file a return. If you started 07/04/2016 then your first accounts should cover 06/04/2016 to 05/04/2017, and the tax return will be due by 31/01/2018.

You could also register online: https://www.gov.uk/government/publi...ter-if-youre-a-self-employed-sole-trader-cwf1

I would advise caution though, as having a manager and a base salary sounds like employment, not self employment. Have a read through here to start: https://www.gov.uk/employment-status/overview and then also have a chat to your manager about why he believes you're self employed.

Get an accountant early so you have someone who can talk you through these things, as well as someone who can advise on what records you should be keeping and what expenses you can claim.
 
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