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Add hoc work from home, how to pay tax?

6 replies

timetoask · 06/04/2012 18:40

I hope someone knowledgeable can help me.
I stopped working some months ago to relocate back to the uk. My previous employer can contacted me asking to help with a small project (will probably take a couple of months), I can work remotely, from home.

I am over the moon and would love to do it, but I am not sure what to do about income tax? Do I pay it abroad (eu country), or in the uk? I don't have a company registered and don't want to do so as this is a one off thing.

Any ideas how I can pay tax on this?
Thanks

OP posts:
An0therName · 06/04/2012 23:19

if you are living in the uk then I would imagine you registor as self employed - v easy - one form - and do self assesment here - also pretty straightforward - you don't need to have a company - I think I would ring the HMRC/look on their website and just check as I am not a tax expert

northerngirl41 · 13/04/2012 11:55

Yup - you are in the UK and unless registered for tax elsewhere, you'd pay tax here.

As AnotherName says, it's very easy to register as self-employed, you would need to pay National Insurance contributions (around £10/month) and that would cover you legally and for various benefits such as contributing towards your pension, maternity allowance etc.

Each January you would complete a tax return to tell them how much money you made, your business expenses incurred to earn that sum, and the tax man tells you how much dosh you owe him.... So make sure you keep a % back from your gross earnings (depends a bit on how much you are planning to earn though).

catsgotthecream · 13/04/2012 12:04

i've just registered as self employed, so easy to do, i phoned up, and a lovely lady talked me through the NI form, it's £2.50 p/w or you can pay 6 monthly by DD, after that is sorted, you'll get a letter after a week or so with your tax payer number, and HMRC will write to you when you have to do your self assessment, if you're doing it on line it has to be done by jan 31st. Thats it, as i said really easy and straight forward, good luck.

catsgotthecream · 13/04/2012 12:07

Forgot to mention the NI i quoted is for class 2, if you expect to earn a lot, you may have to pay class 4, not sure how much that is though.

An0therName · 13/04/2012 20:29

Ifyou are going to earn less than 5,595 you can claim an exception for Class 2 - another easey form. Class 4 is based on a % of profit, which you'd also pay if s-e AND making enough profit.

catsareevil · 14/04/2012 21:51

You may not need to do anything more than inform the tax office. For my additional work I just write to them each year setting out my untaxed income and my expenses and they adjust my tax code (It is always less than £5595 per year).

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