[udders]

Hello,

I am full time employed but at the end of March 2011 I registered as a sole trader, I realise that a self assesment tax return is required by the end of January, but do I just pay tax on anything that I earnt between March 2011 and April 6th 2011, and then anything after that is paid next year?

If someone could explain how it all works that would be great thank you!

[zed]

Correct. Your return is for tax year 2010/2011 so anything earnt in that tax year. Anything after 6th April will be 2011/2012

[udders]

zed, on 23 January 2012 - 11:54 AM, said:

Correct. Your return is for tax year 2010/2011 so anything earnt in that tax year. Anything after 6th April will be 2011/2012

So I would do another tax return in Jan 2013 and pay that tax 31 Jan 2013? For everything after 6th April 2011 - 6th Arpil 2012?

[zed]

Yep. You don't have to wait until January though.

[Sinero Web Design]

You have done the right thing in making your accounting year the same as the fiscal tax year , its not a requirement but its easier to keep track on deadlines etc.

Your March 2011/2012 tax year doesn't have to be done until January 31st 2013 if you do your return online. In your full time employment you will receive a P60 which you will need to do your return as you need specify your tax office and your income so don't loose it. It will be your last payslip for the tax year.

I presume you will owe tax from your return and the HMRC will allow you to repay this through your PAYE employment if you wish , basically your tax code will increase in your full time employment if you don't want this then don't tick the selection on your return and you will be asked to pay the tax online either direct debit or credit card.

You should receive an exemption letter regarding national insurance , as you already pay this through your PAYE you are exempt up to a certain profit margin which is I think 7k+.


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