Self-employed taxpayers should notify HMRC as soon as practicable when they begin working for themselves. HMRC must be officially notified by 5 October following the end of the tax year so that a self-assessment return can be issued on time and to avoid any unnecessary penalties.

In the  recent Autumn Statement, the Chancellor announced a significant change to National Insurance contributions for both employees and self-employed people.
 

In the  recent Autumn Statement, the Chancellor announced a significant change to National Insurance contributions for both employees and self-employed people.
 

There are two types of National Insurance contributions (NICs) payable by most self-employed people. These are known as Class 2 NICs and Class 4 NICs.

The new rules will not change the accounting period of the business, however the tax position will move from a current year basis to a tax year basis. This will mean that  business profits will be calculated for the tax year rather than for the period of account ending in the tax year. 

The basis period rules for unincorporated businesses are being changed from the 6 April 2024, with a transitional year of the 2023/24 tax year.

The deadline to make a claim is fast approaching. Applications for the fifth Self-Employment Income Support Scheme must be made on or before 30 September 2021.

If you decide to become self employed, it is vital that you register with HMRC by 5th October following the end of the tax year in which you became self employed.  If you do not follow this process, you may be liable to a penalty based on the tax that is due to HMRC.

You can claim the 5^th SEISS grant if you are self-employed and if you think that your business profit will be impacted by coronavirus (COVID-19) between 1 May 2021 and 30 September 2021.

The online services for the fourth Self Employment Income Support Scheme (SEISS) have now opened, meaning you can now make a claim.

Further details about the fourth Self Employment Income Support Scheme (SEISS) grant, which covers the periods of 1 February 2021 to 30 April 2021, were released recently.  

Employed and Self-Employed persons can take advantage of tax breaks on their time working from home. 

A roundup of the key measures announced by the Chancellor in the 2021 Budget.