搜索
1,(1)contractofserviceandcontractforservice(2)Factorswhichmaybeimportanttoconsider:One:ThedegreeofcontrolexercisedoverthepersondoingtheworkTwo:whethertheworkermustacceptfurtherworkThree:whetherthepersonwhohasofferedworkmustprovidefurtherworkFour:whethertheworkerprovideshisownequipmentFive:whethertheworkerisentitledtoemploymentbenefitssuchassickpay,holidaypayandpensionfacilitiesSix:whethertheworkerhireshisownhelpersSeven:whatdegreeoffinancialrisktheworkertakesEight:whatdegreeofresponsibilityforinvestmentandmanagementtheworkerhasNine:whethertheworkercanprofitfromsoundmanagementTen:whethertheworkercanworkwhenhechoosesEleven:whethertheworkerworksforanumberofdifferentpeopleororganizationsTwelve:thewordingusedinanyagreementbetweentheworkerandthepersonforwhomheperformswork.(3)applicationoftheaboveprinciplestoKaty:Control/unabletocommittoworkingspecifichours/doestheworkwhenshecan/recordtimespendonclients/self-employmentFinancialRisk/nowsubcontractssmalljobs/recordstimespendoneeachclientsandinvoicestheaccountantsforherhoursworkedatagreedhourlyrate/self-employmentEquipment/thefirmhasgivenKatyoneoftheirPCstodoherwork(1mark)/employmentWorkperformanceandcorrection/nowsubcontractssmalljobs(1mark)/self-employmentHolidaysandsickness/wouldthenhavebeenentitledtoholidayandsicknesspay(1mark)/self-employmentExclusivity/shedoesnootherpaidwork/employmentDecision:Katy’semploymentstatusismoreclosetoSelf-Employmentaccordingtoabovetests2(1)taxablepersons:Individuals,partnersandtrustresidentintheUKarechargedtoincometaxontheirincome.Tobemorespecific,taxablepersonsrefertothosewhocanobtainincome,corporationrevenue,capitalgains,inheritanceandaddedvalue.BothUKandnon-UKresidentsistaxedbecauseinrespectsofhispropertyintheUKandheenjoysthebenefitsofourlawsfortheprotectionofthatproperty.ResidencearethosewhospendsmorethansixmonthsintheUK(183days)orwhohasestablishedpermanentresidentabroadwillberegardedasresidentintheUKiftheyvisittheUKformorethan91daysinthetaxyear.(2)taxyear:taxyearreferstotheperiodfrom6thApriltofollowing5thApril.(3)self-assessmentsystemofsubmittingtaxreturnsandpaymentoftax:One:SelfAssessmentisasystemHMRevenueandCustoms(HMRC)usestocollectIncomeTax.Two:Conditionsforsubmittingtaxreturns:Youneedtosendataxreturnif,inthelasttaxyear:youwereself-employed-youcandeductallowableexpensesyougot£2,500ormoreinuntaxedincome,egfromrentingoutapropertyorsavingsandinvestments-contactthehelplineifitwaslessthan£2,500yoursavingsorinvestmentincomewas£10,000ormorebeforetaxyoumadeprofitsfromsellingthingslikeshares,asecondhomeorotherchargeableassetsandneedtopayCapitalGainsTaxyouwereacompanydirector-unlessitwasforanon-profitorganisation(egacharity)andyoudidn’tgetanypayorbenefits,likeacompanycaryourincome(oryourpartner’s)wasover£50,000andoneofyouclaimedChildBenefityouhadincomefromabroadthatyouneededtopaytaxonyoulivedabroadandhadaUKincomeyougotdividendsfromsharesandyou’reahigheroradditionalratetaxpayer-butifyoudon’tneedtosendareturnforanyotherreason,contactthehelplineinsteadyourincomewasover£100,000youwereatrusteeofatrustorregisteredpensionschemeCertainotherpeoplemayneedtosendareturn(egreligiousministersorLloyd’sunderwriters)-youcancheckwhetheryouneedto.Youusuallywon’tneedtosendareturnifyouronlyincomeisfromyourwagesorpension.IfyougetanemailorletterfromHMRevenueandCustoms(HMRC)tellingyoutosendareturn,youmustsendit-evenifyoudon’thaveanytaxtopay.Three:deadlinesfortaxreturn:TherearedeadlinesforsendingyourSelfAssessmenttaxreturntoHMRevenueandCustoms(HMRC)andpayinganymoneyyouowe.Thelasttaxyearstartedon6April2014andendedon5April2015.SelfAssessmentDeadlineRegisterforSelfAssessmentYoushouldregisterby5October2015PapertaxreturnsMidnight31October2015OnlinetaxreturnsMidnight31January2016PaythetaxyouoweMidnight31January2016Four:Paymentoftax:UnderPAYE,incometaxisnormallypaidovertoHMRCmonthly,17daysaftertheendofthetaxmonth(ifpaidelectronically)or14daysaftertheendofthetaxmonth(ifpaidbycheque).Largeemployerswith250ormoreemployeesmustmakeelectronicpayments.(4)theapplicationofinterest,surchargesandpenalties:DailyinterestischargedonlatepaymentofincometaxunderPAYEbytakingthenumberofdaysbywhichapaymentislateandapplyingtherelevantlatepaymentinterestrate.HMRCmakethechargeaftertheendofthetaxyear.LatepaymentpenaltiesmaybechargedonPAYEamountsthatarenotpaidinfullandontime.Therewillbenopenaltyifthereisonlyasmallunderpayment,andpenaltieswillbechargedonarisk-assessedbasisratherthanautomatically.EmployersarenotchargedapenaltyforthefirstlatePAYEpaymentinataxyearunlessthatpaymentisoversixmonthslate.Theamountofpenaltiesonlatepaymentsdependsonhowmuchislateeachtimeandthenumberoftimespaymentsarelateinataxyear.Themaximumpenaltyis4%theamountthatislateintherelevanttaxmonthandappliestothe11thlatepaymentthattaxyear.Whereapenaltyhasbeenimposedandthetaxremainsunpaidatsixmonths,thefurtherpenaltyis5%oftaxunpaid,withafurther5%iftaxremainsunpaidat12months.Asurchargeof5%willbeappliedtotaxunpaid28daysaftertheduedatewithafurther5%applied6monthsaftertheduedate.3,(1)basisofassessment:peoplewillbetaxedonthefollowin