Self-employed UK citizens have a special tax scheme. You
either pay lower or higher than the conventional UK employee depending on the
nature of your business. Here is a short guide to your taxes.
1.
Confirming Self-Employment
A self-employed must register his or her business with Her
Majesty’s Revenue and Customs or HMRC within three months of self-employment
declaration. Self-employed people may also register for VAT. Upon registration,
you should keep all the income and expenses related to your tax return for five
years.
2.
Liabilities
The United Kingdom has different kinds of taxes for the
self-employed such as National Insurance, VAT, capital gains tax and business
rates. Most self-employed pay national insurance and Class 1 contributions for
those with employees in their business. Business rates apply for your
properties and real estate where business is done and capital gains tax is
accrued when selling business properties. All self-employed also pay a
percentage for income tax.
3.
Tax Deductions
Anything that is not considered or declared a capital asset
is non-taxable and you could claim tax deductions on the following.
1.
Employers’ National Insurance
2.
Employees’ insurance, childcare provision and
pension benefits
3.
Costs of Training for Employees
4.
Business Premise Maintenance
5.
Council Tax
6.
Cleaning
7.
General Maintenance
