When I registered the tax office ran some really useful short courses, they were free. Covered all the basics of accounting for yourself, what you can claim for and so on. Give your local office a ring and see if they still do them.
Tansy_BlueDISCLAIMER: I'm not an accountant or anything, this is just what I found out when googling and reading on HMRC and bugging accountant friends last year when I was fighting with my tax return. I might be wrong. I might be very wrong. Please double check all of this shpeel. You need to fill in a tax return every financial year. Financial years end on the 5th April, and you have until 31st January to submit your self-assessment form and pay any outstanding tax. If you've already registered self-employed and registered for self-assessment, go here: https://online.hmrc.gov.uk/login Thank you so much for your help, it is definitely a lot clearer to me now...although I'm a little bit worried as I didn't do my tax return's for April :-s have have registered to do my tax return's online and now have to wait to get some sort of code in the post. x And log in using your user ID and password (if you don't know your user ID and password you might have a problem; I guess you'd talk to HMRC about it?). From that portal you can fill in your self-assessment. Tax is taken from *profits*. So if you keep track of your earnings, and keep track of your expenses (travel expenses (but NOT travel expenses you get refunded for, only travel expenses that you pay yourself), food you pay for while on the job, unavoidable business expenses (like modelling-only make up and clothes, but not clothes/make up that you use outside of modelling as well), website subscriptions, phone bill if you have a separate modelling phone) you pay tax on your earnings minus your expenses. Your first £8,105 of profit is untaxed, then you'll pay income tax at a rate of 20% on any further profit. So if you make £10,000 profit then you'll pay tax on 10,000 - 8,105 = 1895; 20% of 1895 is £37.90, so that's how much income tax you'd pay that year. (In addition to any National Insurance contributions.) More here: http://www.hmrc.gov.uk/incometax/personal-allow.htm And here: http://www.hmrc.gov.uk/incometax/basics.htm If your profits are over £5,595 you'll have to pay class 2 National Insurance contributions, which is £2.65/week. If you pay income tax as well, then you'll have to pay class 4 NI contributions at 9% of your taxable income. More stuff: http://www.hmrc.gov.uk/ni/intro/basics.htm This applies to your *total* income, so if you do any other freelance work include that in your self-assessment. I'm not sure how it works if you're also employed and getting regular paychecks from your employer. If you claim any benefits, they may be taxable. Some benefits are taxed and you need to include them in your self-assessment. Others aren't and you can leave them out. Here's the list of benefits that are and aren't taxed: http://www.direct.gov.uk/en/moneytaxandbenefits/taxes/taxonbenefitspensionsandmaintenance/dg_10027059 And everything changes if you earn over a certain threshold. You need to be VAT registered if you earn over £75,000, for instance. (At least I think it's £75,000.) The rate of income tax and the rate of NI also goes up if you earn over a certain threshold, which I think is something like £30k - but seriously, how many Purestorm models are making that kind of money?
it is definitely a lot clearer to me now...although I'm a little bit worried as I didn't do my tax return's for April :-s have have registered to do my tax return's online and now have to wait to get some sort of code in the post. xDon't stress about it - the deadline for getting your 2012 Tax Return completed and submitted is 31st Jan 2013
The deadline for the 2010/11 Tax Return was only 3 and half months ago - ie 31st Jan 2012.Tansy_BlueDon't fuss, I did my tax return for '10 - '11 about six months late and no one seemed to care. (Then again I did make about fifty quid in that period. :P)