UKC

I've just passed my SPA and I'm starting to do some instructing alongside my full time job to get my experience going. I've only ever paid tax through PAYE so I'm not very clued up. Presumably I'll need to file a tax return now and pay the relevant tax on my instructing earnings, anyone got any advice on the easiest way to do this?

Cheers

Tom

In reply to thomaspomfrett:

If freelancing you'll have to register as a sole trader. this is easy enough to do as it's all online, though registering for online SA takes a long time to set up. The SA form will allow you to enter all your earnings including your PAYE earnings and they will calculate the tax owed if any. I'm not sure how NI conts. will be calculated if you already have a job.

In reply to thomaspomfrett:

Easiest way is to call HMRC newly self employed helpline, they'll set you up for SA and NI contributions, give the normal HMRC helpline a call as well, ask to speak to a tech and they'll advise what costs you can claim as a business expense, you may be able to claim start up costs for equipment you bought before you started the business.

In reply to higherclimbingwales:
It will also insist that you enclose details of all your savings and the interest accrued from them, shares, dividends, the lot - even if you have paperwork to show that the interest has been taxed already, you've STILL got to write it all up.
PAYE people don't normally have to jump through hoops like this.

In reply to Tom Valentine:

But don't forget that the costs you incurred doing the SPA relate to your ability to earn money so are tax deductible as would a certain amount of equipment i would think...

In reply to Removed User:

I don't think you can retrospectively claim tax deductions.

In reply to Removed User:


Sorry that's not correct.

In reply to higherclimbingwales:

You can sometimes claim for equipment bought before you start trading as start up costs but not always.

In reply to Mooncat:

Indeed - the cost of new qualifications isn't claimable. Oddly, the cost of maintaining old ones is, so you can deduct your first aid ticket renewal costs every three years.

And you can claim part of the cost of equipment you already owned, as long as you use it to earn with. I'd have to dig up my last tax return to check, but I think I state that 25% of the use of my rack, ropes, and PC is business related so I can claim a certain (annually decreasing with depreciation) percentage of that back.

Just call HMRC; despite their reputation, they answer the phone very quickly (as long as it's not the day before SAs are due!) and are really helpful.