Self Employed

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GYMBUNNY
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Joined: Wed May 17, 2017 7:18 pm
by GYMBUNNY » Wed May 17, 2017 7:44 pm
Hi, I'm currently in an IVA, almost completed year 4. I am currently employed but have been given an opportunity of an new job but would have to be self employed. The work is guaranteed and the monthly amount I would be more than what I am currently earning. I would raise an invoice each month and then have to complete a tax return at the end of the year to pay over tax to HMRC. My earnings each month won't have any deductions but will take me above my monthly allowed earnings limit. How does this work in terms of what i pay over. I currently have to pay 50% of anything earned above my allowed limit, but obviously the amount i'm potentially going to earn is a gross figure so not a true reflection of what I'm really earning if that makes sense?
Any input would be greatly appreciated.
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luluj
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by luluj » Wed May 17, 2017 8:47 pm
Your tax and national insurance payments would need to be calculated and deducted from your gross earnings to provide your net income - it shouldn't in theory have a huge impact.

Any additional income to what your earning now is likely to be considered at next review and may fall under the overpayment clause.

Your IP is best placed to talk you through the changes.
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Foggy
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by Foggy » Wed May 17, 2017 8:49 pm
I was part- time self employed during my IVA and we basically split the S.E earnings three ways being "extra income" in my case: Third for the IVA, third to the taxman ( held on account) and a third was mine. Your IP would have to allow you to keep your expenses and allowances as already agreed, then allow a sum for tax & NI ( which you would hold in an account pending tax returns ) and the balance would be your disposable income -- you would need to re-do your I&E from scratch.
GYMBUNNY
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Joined: Wed May 17, 2017 7:18 pm
by GYMBUNNY » Wed May 17, 2017 9:11 pm
That's great, thank you for your input. I think i was more concerned it would be a no, so I feel slightly better now, We will give them a ring tomorrow and see what they say.
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watzki
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by watzki » Wed May 17, 2017 9:31 pm
When I was self employed everything was calculated when I did a tax return which in turn I sent to my IP.
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