Help about tax pls... If ur self employed???????????

[georose]

Hi, is anybody knows an accountant here? i am a self employed i get paid an hr. cash on hand... i wanted to pay tax but i dont know how and where to start... as i only work whenever they call me... pls help..........im confused.........

[Pete/London]

If you have a national insurance number you should have a choice to pay a self employed stamp. You also notify HMRC that you are self employed/self assessment and they will send you a tax return to complete at the end of the tax year, April 2013. Keep a record of payments received and expenses incurred . If the expenses are allowable they will be deducted from your income figure.You will be allowed to earn a certain figure before any tax is due, around £8000 for the year. If tax is payable it is charged in 2 installments. If you go to the HMRC site the information is available.

Its not advisable to announce on a public forum that you are working cash in hand.

[rusty]

From the HMRC website http://www.hmrc.gov.uk/working/intro/casual.htm

If you work for an employer

If you're employed on a casual, temporary or part-time basis, by law your employer must:

• deduct tax and National Insurance contributions from your wages
• give you payslips
• deduct student loan repayments, if relevant
• give you form P45 when you leave
• give you form P60 at the end of each tax year if you still work for the employer

What about cash in hand?

It's illegal for your employer to pay you cash in hand without deducting tax and National Insurance contributions from your wages.
If you accept money in this way, you risk losing your employment rights and the right to some benefits, such as:

• maternity or paternity leave
• sick pay
• Jobseeker's Allowance

In addition you could end up having to pay the tax and National Insurance contributions yourself.
If you suspect your employer of not paying tax or National Insurance contributions on your wages you can report them in confidence using the Tax Evasion Hotline on Tel 0800 788 887. Lines are open Monday to Friday 8.00 am to 6.00 pm and are normally less busy before 9.00 am.


If you work for yourself

If you're self-employed on a temporary or part-time basis you must register for business taxes with HM Revenue & Customs (HMRC) as soon as you start work. You'll have to complete a Self Assessment tax return and are responsible for paying your own tax and National Insurance contributions on the income you earn. Even if you don't think you'll earn enough to need to pay tax, you still need to complete a tax return.

Working for cash

You can accept cash payments for work you do, but it's illegal for you not to declare this on a tax return, and you must pay Income Tax and National Insurance contributions if these are due. This will depend on your overall taxable income in the tax year.



Tax has to be paid somewhere, either by the employer or if you become self employed, by you when you fill in your self assessment.

Look at the links provided by the HMRC to see what would be best for you.