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UK Tax question

Discussion in 'Business & Tax Advice' started by rockandcarter, Oct 9, 2012.

  1. rockandcarter

    rockandcarter Junior Member

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    Hello BHW'ers

    I think i may have put my self in a pickle. I am from the UK and I am going traveling for a good couple of years now. I've been a student ever since last september. Every summer for 2-3 months I work as a self employed stage builder. My boss has always told me never to bother with my tax as I was a student. As I"m no longer a student and relise that it was stupid not to have done previously. However this summer I've earned about 9000 from the stages plus more with IM, so I'm going to have to register as self employed and pay tax. I've kept the majority of my recepts and should be able to make my expenses go under the tax bracket. petrol, tools etc

    The problem is this only just occurred to me now and I fly to KUL this Friday. Have I left it to late?
    Also if I leave money on my ad-sense,CB etc will I have to account for that if I dont cash it out?
    How does an IMer go about paying taxes if there on the move?


    Thanks
     
  2. social engineer

    social engineer Regular Member

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    Im not a tax lawyer or an accountant so dont take this as gospel.

    but isnt there something about not paying tax if you only spend a certain ammount of time in the uk?
     
  3. Icemantaz

    Icemantaz Registered Member

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    Best thing would be to speak to an accountant ASAP. You could always leave your receipts etc with the accountant and then if they need any more details contact you via email?
     
  4. jackens

    jackens Newbie

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    You may run your business upto three months without being registered as self-employed.
    Have you already applied for your National Insurance number?
     
  5. davids355

    davids355 Jr. VIP Jr. VIP Premium Member

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    Definitely I would speak to accountant - you can have initial meeting for very small fee, and they will tell you best direction to go.
     
  6. 0scan0

    0scan0 Jr. VIP Jr. VIP Premium Member

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    If you are planning to be away from UK for some years it's worth changing your nationality to Macedonian and then register a company there, and then you can leave the country and go on your little travel. Why? Because IT company are excemp from tax in the starting period, which is 10 years!!!

    Now this is maybe only worth it if you are planning to make some serious cash.
     
  7. longrun

    longrun Junior Member

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    You don't have a problem. Just find a local accountant, tell him your story and he/she will handle the rest...for a fee.
     
  8. Rockefeller

    Rockefeller Newbie

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    As mentioned above speak to an accountant or two (most offer a free consultation) and pick one that offers the most suitable advice. All paperwork can be done remotely if needed. It sounds like if there is any tax/NI owed it'll quite low as you weren't earning much - for example for this year the Personal Allowance is £8105. so anything earned up to that is tax free, anything over that is taxed at 20% up to £35k.

    Speak to accountant, get it sorted, but don't stress it HMRC are actually pretty reasonable. (no i don't work for them! :)).
     
  9. redclover

    redclover BANNED BANNED

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    Yes meet an accountant to get this solved. Taxes can be a tricky thing.

    RedClover
     
  10. jascoken

    jascoken Senior Member

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    I think you have to out of the country for 9m of the year to avoid UK taxation. Any more than around 90 days means you're probably resident.

    Ltd companies are always a good choice if you can find a modestly cheap accountant for simple work. If you do your own book-keeping it shouldn't cost too much.

    Having a ltd company means that 'it' is earning the money, and in the UK, you'll only pay 20% corporation tax (and that's counted as a tax credit towards any dividends you take out.) The money can be 'left' there until you want to take it. So if you do well, you can stage the income over years.

    As said above, an accountant is the best place to start.
     
  11. solutionz

    solutionz Newbie

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    Hire a CPA to help you fix this mess. Taxes are very hard to understand sometimes especially dealing
    internationally and hiring someone qualified should do the trick!