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Need Tax Advice!
devperson
Messages count : 1
Likes count : 0
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10 February 2009
Hi everyone,
I'm in a bit of a dilemma and not quite sure what steps to take in order to resolve my problem.
I have been working for an IT firm for 6 months now (since August 2008), and am new to the UK. I have hassled them to put my on the payroll with no luck, so I am stuck being a freelancer (which it seems may be in my favor anyway). They also told me that they would sort out my tax, which hasn't happened, and I am having to sort it out myself. First of all, what are the legal requirements to freelance, and what steps do I need to take in order to be on the right side of the law regarding this.
Secondly, when and how do I go about paying tax on my income without the assistance of an accountant? (I appraoched the company accountant and he wanted a ridiculous amount of money for what I imagine is a very straight-forward procedure).
Any help would be greatly appreciated, I really want to get all of this sorted out ASAP.
Thanks!
I'm in a bit of a dilemma and not quite sure what steps to take in order to resolve my problem.
I have been working for an IT firm for 6 months now (since August 2008), and am new to the UK. I have hassled them to put my on the payroll with no luck, so I am stuck being a freelancer (which it seems may be in my favor anyway). They also told me that they would sort out my tax, which hasn't happened, and I am having to sort it out myself. First of all, what are the legal requirements to freelance, and what steps do I need to take in order to be on the right side of the law regarding this.
Secondly, when and how do I go about paying tax on my income without the assistance of an accountant? (I appraoched the company accountant and he wanted a ridiculous amount of money for what I imagine is a very straight-forward procedure).
Any help would be greatly appreciated, I really want to get all of this sorted out ASAP.
Thanks!
- Contact in PM
SOLO PLC
Messages count : 3Likes count : 0Registration : 15 January 2009Hi devperson,
With regards to your post you must make sure you keep on top and are aware of your tax liabilities, as the HMRC will hold you responsible. There is nothing more frustrating than paying extra money, than that of which you owe due to penalties and fines!
If you want to do your own payroll, bookkeeping and accounts for yourself that is fair enough, but you will unless you are a qualified accountant you will need professional assistance to prepare your Company's Year End Documents (if you are a limited company). Whatever system you decide to use, you must make sure it calculates figures correctly, as mistakes are costly and will take a long time to rectify.
With regards to freelancing through a limited company, there is a vast amount of legislation you must comply with. For example, a limited company must keep books in a certain way (double entry bookkeeping), and make annual returns to Companies House, as well as the tax liabilites for you the individual/ director, and your company. Remember that both you and the company are two seperate entities. Limited Companies are however, by far the most tax effficient vechile for freelancers like yourself.
If you are freelancing as a self employed sole trader than your responsibilties are far smaller, just make sure you have notified the HMRC within your first three months of trading. The business link websites are also fantastic for support and advice, and being a government organisation the information is reliable.
Anyway Good Luck with whatever you decide to do. If you need anything else or want to know more either PM me or phone us.
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