We are a business that has more than thirty years of experience in the accounting industry. As a result, we are in the ideal position to help clients with all of their problems. For instance, we are the top performing company working in tax returns Stoke Newington has available.
Those who are self-employed hold responsibility for paying National Insurance and tax on their income. It is essential to remain on top of your records here. This way, figuring out how much you have to pay shall be easier.
To determine how much you need to pay, the first thing you must do is find out your employment status. Normally, this is easy. However, there are times when it can get tricky. For example, you could technically be self-employed at the same time as having another job elsewhere. You can use the Employment Status tool on HMRC’s website to assist you here.
Personal allowance
Next, let’s discuss the amount it is possible to earn tax-free if you are your own boss. Here you qualify for the same tax free personal allowance as a person who is an employee of a business. The amount for the 2019/2020 tax year is £12,500. This is the amount you can earn before you begin paying the income tax.
What happens if I earn over £100,000?
Let’s say that you earn more than £100,000. The regular personal allowance of £12,500 falls by £1 for every £2 of income here. This is for the 2019/2020 tax year.
Yet, if you are someone with two jobs, one of which you are your own employer, things become more complex. You receive a single personal allowance only. HMRC typically apply this to what they consider your primary employment.
At Brian G Lonis & Co, it is our job as tax specialists to ensure you are doing everything by the book. Additionally, we go out of our way to make certain you are not overpaying at any point.
If you require aid from the best company working in tax returns Stoke Newington has, please speak to us. We support everyone, whether you are your own boss or an employee elsewhere.