Being Self Employed
First of all you need to check if you are an employee or self-employed, more information click here
Paying National Insurance
National Insurance is paid at 9% if you’re self-employed and your profits are between £8,060 and £43,000 and 2% on profits over this (for the 2016/17 tax year). However if your profits are less than the Small Profit Threshold of £5,965 for 2016/17 you will not have to pay any National Insurance.
- You don’t pay tax on certain expenses such as a mileage allowance for using your car and car parking fees.
- Try to put aside 25% of your earnings into a savings account so that you have the money ready to pay your tax contribution when you need to – it will earn you interest too.
- Think about whether you need to take out insurance such as Public Liability Insurance, depending on what you’re doing.
One of the main information sources is HMRC:
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