Becoming Self-Employed

Tax ReturnI’ll assume that you understand the principles of self-employment, that you have registered with HM Inspector of Taxes as self-employed (in the UK), have set up a DDR to pay your National Insurance contributions, and will be submitting an Income Tax Return by either the 30th September each year (if you want the Inland Revenue to calculate any tax for you) or 31st January each year (if you’ll do the calculations yourself).

NB here – if you use the Inland Revenue on-line service (www.inlandrevenue.gov.uk or email their help desk at email hidden; JavaScript is required) you can submit your return any time up to 31st January, as the software will calculate your tax for you.

A further pointer if you’re new to self-employment:  where you earn £15,000 or less in any one tax year, you won’t be asked to give any details of your income and outgoings beyond a total figure for each and the calculation of the difference between them (i.e. your net profit or loss).

If any of this sounds remotely daunting to you, you’ll be pleasantly surprised by the helpfulness of your local Tax Office.  Simply call in and see them (don’t try to telephone!) and you’ll have a Tax Advisor at your disposal to answer all your questions and help you on your way.  The service is completely free, and as good as you’ll get from a costly accountant.

This post is part of the free E-Course “How to Develop Your Therapy Practice”. Each lesson only covers the bare essentials of what you need to learn and should not form your only source of information.

For the complete detailed guide which takes you through each step of setting up and building a successful Therapy Practice – click here.

If you missed the previous lessons, here are the links:

An Introduction to Private Practice
Legal Requirements
Is Private Practice for You?
Are You Ready for Private Practice?
What are the Initial Considerations?
Security Considerations
Developing a Client Base
Financial Considerations

 

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