What do I do now? (tax and NI, v boring)

[Soopermum1]

After working for 11 years at the same company, I got made redudant in April, signed on the dole then started as a sole trader mid September.

I registered for NI and tax in September and got an e mail confirmation back, saying

'' Once we have processed your registration we will issue form SA250 which will confirm your Unique Taxpayer Reference (UTR) number and other relevant information. This process can take up to 4 to 6 weeks. ''

I haven't had this form through. So, to date, i haven't paid any tax or NI, though I'm saving it up in my business bank account.

I got P45 forms through. Do I need to fill out the one for the employer and send it back?

Tried to call HMRC but they were too busy.

Getting a bit worried I'm liable for a fine or something.

Also, been saving reciepts for travel and lunch, do I deduct that from total earnings so NI and tax is applied to the lower amount earned post my deductions.

Am a bit crap at all this

I assume you haven't filled in a tax return before? If you have, your UTR will be on the tax return.

If not, chase up the SA250. Try both the Newly Self Employed help line on 0845 915 4515, the general taxes help line on 0845 300 0627 and perhaps your local tax office too.

The only tax or national insurance you have to pay before January 2013 (yes, 2013) is Class 2 National Insurance which is £2.50 a week at the moment. Send in the form from this page (you can't do this electronically because the direct debit form must be physically signed). Class 2 NI is now due 6 monthly in arrears on 31 January and 31 July so you are not even late yet!

You don't need to do anything with the P45 unless you start work for a new employer (not self-employment) or sign on as unemployed.

Travel and/or lunch may or may not be allowable expenses for you, it depends on the circumstances. Unless your earnings are very low it is probably worth using an accountant - the charge for a self employed return should only be a couple of £100 and they could save you at least that in tax as well as saving you tons of time learning how to calculate taxable profit.

I wrote this page for ebayers
cgi3.ebay.co.uk/ws/eBayISAPI.dll?ViewUserPage&userid=talkinpeace
but it is generally applicable, has links to the important stuff and had been checked by all the accountants on Ebay - and even Anchovy did not say it was rubbish !!

Thanks, folks. Managed to finally get through to the tax office and used that link MrAnchovie.

Will def have a chat with an accountant, even as a one off. My 2011 financial situation was quite complex so want to check I won't overpay on tax, so a couple of £100 will be well worth it.

I'm actually really looking forward to my tax return. I've been saving more that I think I need in my business account, so when I work out how much I owe and get it paid I'll be able to award myself a little annual bonus

the going rate for a tax return is around £250 ish
but generally we save you more than that by remembering the deductibles that you would never have thought of!
the UK Business Forums Accounting page
where Anchovy and I both post
is a corker