Self employed working from home: Tax question

gordan1172 · Apprentice Joined: 23 Nov 2007 Posts: 3

I have recently started thinking about working from home as self-employed. I do not have too much experience, so I do not know much about paperwork or administration, so I would like to know how is this way of working taxable, and whether there is any difference with taxing self-employed people working outside. Thanks in advance.

raleigh1200 · Apprentice Joined: 22 Mar 2009 Posts: 3

There are several things you should know. First, if you have started working as a self-employed and worked previously as a regular employee, inform your tax office. You will not have tax deductions you would normally have as an employer, although you will probably have greater salary too. Also, the tax demands will be sent to you yearly, so you will need to have all the required money on that day. How much taxes you will have to pay, depends on your income. For example, first 5000 pounds are tax free, while after that, the rates rise from 10% to 40%. Check some more info at http://www.thesite.org.uk/workandstudy/working/
selfemployed/taxandselfemployment.