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Flashcards in Self employed Deck (3)
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1

When do you have to notify HMRC when you are near to exceeding the £85k VAT limit

-have to notify Hmrc within 30 days of the end of the month in which limit was exceeded.
-they will then be registered from the first day of the second month after exceeding the limit
-for example if the limit is exceeded during April 2018 then notification must be made by the 30th of May 2018 and the trader will be registered from 1st of June 2018

2

What amount of trading income do you not have to pay tax on?

Trading income of less than £1k doesn’t have to be declared. Can receive this £1k allowance rather than deducting expenses

3

How to differentiate between self employed and employed

-control
-contract of service/contract to provide service
-set pay and holidays
-fire someone indicates employment
-if worker can pass jobs to someone else (self employment)
-Do they provide their own equipment, especially major capital items?
• Do they hire any workers needed, paying them out of their own pocket?
• Is any financial risk being taken (by using their own money), meeting losses as well as taking profits, correcting unsatisfactory work in their own time and at their own expense, etc.?—working for some employer for long time