Self Assessment is a system HM Revenue and Customs ( HMRC ) uses to collect Income
Tax. Tax is usually deducted automatically from wages, pensions and savings. People
and businesses with other income must report it in a tax return.
If you need to fill in a self-assessment tax return, HMRC should notify you in April and ask you
complete :
To ensure your tax return is accurate, you are expected to keep records, which you may
need to produce if your tax return is queried. These should include details of all your
sales and takings, and a record of your purchases and business expenses.
You should keep your records for a minimum of six years. So, for the 2017-18 tax year,
this means you must keep records until 31 January 2024.
What is self –employed?
A self-employed individual works for themselves rather than for a specific employer who pays
them a consistent salary or wage. A self-employed individual, or an independent contractor,
earns income by contracting with a trade or business directly. Someone who is self-employed
will receive payment with no tax withholding in many cases; thus, they are responsible for
paying their taxes correctly.
Fast Facts:
Those who are self-employed work for themselves and contract directly with clients.
The self-employed do not receive any employee benefits such as health plans.
The self-employed are not subject to tax withholding and are responsible for paying their
own taxes.
Types of self-employment:
Independent contractors: are businesses or individuals hired to do specific jobs.
Sole proprietors: are the only owners of unincorporated businesses while partnerships
involve two or more self-employed people who form a business together.
Benefits:
You must not be working or only be working part time to get Jobseeker’s
Allowance. Part-time work is employment you do for less than 16 hours each
week
If you claim Jobseeker’s Allowance, you must agree to look for and take other
full-time work
You must work full time to get Working Tax Credit. If you do not have children
living with you and do not have a disability, you may have to work at least 30
hours each week to qualify
If your hours of work vary through the year, you might be treated as being in full-
time work even when you are working less than 16 hours.
Contact us
Address:
106, 15 Main Drive
Wembley
Middlesex
HA9 7NA
Email id:
advice@rdhaccountants.co.uk
Website:
http://www.rdhaccountants.co.uk
Phone No:
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