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    hey, does anyone know about the tax threshold for self employed people.
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    (Original post by rebeccaa)
    hey, does anyone know about the tax threshold for self employed people.
    It's the same as for employees - you get an annual 'personal allowance' before you have to pay Income Tax, currently at £6,475.

    You also need to consider National Insurance Contributions (NICs). If you earn more than £5,035 you have to pay 'Class 2' NICs at £2.30 per week; you also have to pay 'Class 4' NICs, at 8% on your income above £5,715.

    Income Tax rates: http://www.hmrc.gov.uk/rates/it.htm
    NIC rates: http://www.hmrc.gov.uk/rates/nic.htm
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    I am sure it is not... can anyone else shed some light>
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    Thanks anyway... just a friend told me it was different
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    (Original post by rebeccaa)
    I am sure it is not... can anyone else shed some light>
    Which part aren't you sure about? Don't the HMRC links give you enough evidence of this?

    Perhaps this might help further: http://www.hmrc.gov.uk/working/self-employed.htm

    If you've got any specific queries, feel free to post again and I'll do what I can to advise.
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    Everything he said ^^ up there.

    Also, remember VAT (15%) which you have to pay if sales go above approximately $60,000 (I don't have a pounds sign).
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    (Original post by rebeccaa)
    Thanks anyway... just a friend told me it was different
    Illusionary, and the links provided are right.
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    (Original post by Jeester)
    Everything he said ^^ up there.

    Also, remember VAT (15%) which you have to pay if sales go above approximately $60,000 (I don't have a pounds sign).
    To be precise, you have to account for VAT and make a VAT return when your taxable turnover from the last 12 months (or expected turnover in the next one month) exceeds £68,000. It's not quite as simple as just paying VAT, as you can (in most cases) also reclaim VAT that you've paid on purchases.
 
 
 
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