Let's talk about self-employment - [PDF] - Niace

Keeping on top of tax
As we’ve already mentioned, we all pay tax to the government
so it has the cash to pay for everything from schools and
roads to the military. If you work for someone else, they pass
your tax on before you get your wages so you don’t really
have to think about it. Unfortunately, as a self-employed
person, it’s all down to you and there are certainly plenty of
examples of people who have come unstuck because they’ve
forgotten to put aside money to pay their tax, or kept dipping
into it to keep their business afloat.
Failing to pay your tax is a really serious issue that will land
you a hefty fine or even another spell in prison so we can’t
stress enough how important it is for you to understand what
your responsibilities are and to plan ahead to pay your taxes.
The first thing you need to do, which we’ve already mentioned
above, is register with HM Revenue & Customs within three
months of going self-employed. This is the part of the
government that is responsible for collecting tax from you.
There are a number of different taxes so it’s important to find
out which are relevant to you. HM Revenue & Customs has a
helpline for newly self-employed people – 08459 15 45 15 –
that can give you the help you need. But, to give you a brief
idea, the main taxes you’re likely to come across are:
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