Being self employed video
Aaron discusses tax and money as a freelance dance instructor
Produced by Lifetracks
Hitting the dancefloor is both a passion and a profession for Aaron. But how do you manage all the paperwork and tax issues?
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Since taking his first dance class at 16, being a freelance dance instructor is all Aaron has ever wanted to do and through persistence and hard work he's finally made it. Now, six months in to running his own small business, he tells us about the pros and cons of being freelance - and about filling in the self-assessment forms which most freelancers would say is the worst bit of their job.
What next?
- Still confused? Tax Matters has games you can play to learn about self-assessment.
- Check out Register as self-employed and for Class 2 National Insurance contributions with HMRC. Decide if you want to make extra National Insurance contributions in order to qualify for additional benefits.
- Register for VAT with HMRC if you supply goods and services whose value is above £60,000.
- Start keeping all records of incomings and outgoings in a safe place and file them monthly into date order.
- Ask your bank for copies of the summary of annual interest on any accounts you have, as this will have to be declared on your self assessment form (the bank should automatically send you an annual update).
- If you have savings, think about starting an ISA, which allows you to save up to £7200 a year tax-free.
- Consider getting a professional to do the number crunching; check out the Institute of Chartered Accountants for a list of registered accountants.
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