So, Im looking for some advice or help from UK members here making some earnings through IM. The current personal allowance in the UK is £8,105 / year for 2012/13. I believe that if you earn over that amount in the year, you need to pay taxes of course. I've signed up as self employed (working online doing IM). I had a chat with the guy at the centre and he told me that each year I will get a form or application from them and I need to send it back with how much I have made in the year, and then they will send me back a bill, only if I have gone over the allowance and also how much Il need to pay in tax. My questions: 1) How much do they deduct from the final amount? Is it 10%? 2) Is it really this simple? They send form. I send back how much I've made and that's it? Or do we send proof on how much we've made and so on? Any advice/tips appreciated.