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

When you’re self-employed, you need to pay VAT if your
business is bringing in more than a certain amount a year. To
find out more about VAT, contact HM Revenue & Customs on
0845 010 9000.
National Insurance
Keeping on top of tax
National Insurance is a tax that the government collects from
most people who work. The money goes into the National
Insurance Fund, which is used to pay for benefits such as
pensions. As a self-employed person, you’ll have to pay
National Insurance unless you earn less than a certain
amount. To find out more about National Insurance, contact
the HM Revenue & Customs helpline for newly self-employed
people on 0845 915 4515.
Caution
You also need to be aware that:
• if you employ other people to work for you, you may be
responsible for collecting their tax and passing it on to
HM Revenue & Customs.
• If you buy and sell things overseas, you’ll probably have to
pay taxes to bring them into or out of the country. The
HM Revenue & Customs website has lots of information
to help you.
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