I've just become self-employed. What do I do next?

You should let the Inland Revenue know as soon as possible that you are self-employed using form CWF1. CWF1 is available from your local tax office or the Inland Revenue website.

You should begin keeping records of your business income and expenditure straight away.

We would also strongly recommend that you speak to an accountant as early as possible

When do I have to pay my tax by?

Under the Self Assessment system the latest date by which tax for any tax year can be paid is 31 January following the end of that tax year on 5 April.

In some cases you will also have to make payments on account towards your liability on 31 January and 31 July 
 

What books/records do I need to keep?

Records of all business income and expenditure, together with supporting invoices/receipts.

You can download the FREE M B McGrady & Co Guide to Record Keeping in the Business Startup section of our website

Do I need to register for VAT?

That depends upon whether the product or service that you are supplying is vatable or is exempt from VAT.

If your product or service is vatable you must register if your turnover exceeds, or is expected to exceed the current threshold. (See our Tax Data Card for the current figure).

What is the deadline for filing P35's?

P35's must be filed by 19 May following the 5 April end of the tax year.

Payments however must be made by 19 April

How does the pay and file system for Corporation Tax work?

For smaller companies, the corporation tax liability must be paid by 9 months after the end of the accounting period and the corporation tax return must be filed by 12 months after the end of the accounting period.

Larger companies must pay in quarterly instalments

Is it worth getting a computer to keep my accounting records on?

Answer:  There is no simple right or wrong answer to this question. Ultimately it depends upon the size of your business, the volume of transactions and the suitability of an accounting package to the nature of your business 

Question:  Is my company entitled to audit exemption?

Answer:  That depends upon your company's turnover. The exemption figure has changed rapidly in recent years for both UK and ROI companies and charities. Contact one of our audit managers for details of the current threshold.

Even if turnover is below the threshold, shareholders in the company have the right to require an audit.

The Tax Inspector is making enquiries in to my Tax Return. What should I do?

Unfortunately you cannot ignore an enquiry, because it will not go away!

We would recommend consulting your accountant straight away and if you do not have one, make an appointment to see one.

If I go abroad to work will I still have to pay UK tax?

That depends upon whether or not you cease to be UK resident for tax purposes, which will in turn depend upon a number of factors, such as the duration of your stay abroad etc.