I have just been made redundant and am thinking of going self employed. Would i be entitled to any tax back?

Answer 1

Depends how much you earn ...

You pay Tax on your total earnings in the Tax year.

Whilst employed you are on PAYE & will have paid Tax each month based on the assumption you are earning 1/12th of you total annual earnings in that month.

So if you have no profits (earnings) for Jan/Feb/Mar your annual total will be less and you will have paid a bit too much Tax - however IR won't know untill you submit your Tax return after the end of the Tax year (i.e after 5 April 2007).

NB- you can ONLY claim back VAT if you are Registered to PAY VAT - you only have to Register once your turn-over reaches some level (check with Customs & Revenue .gov web site).

Answer 2

Well that will depend on your entire income less allowances for the tax year which ends in April, you will have to fill in all the details on your tax return and see what the inland revenue decide, or you could get an accountant to do it for you and he might be able to estimate any tax return .
If you are planning to go self employed what are you planning to do? I was made redundant many years ago and went self employed, but what I found was that I now owned my job and I was always the last to get paid.
If you are open to a suggestion take a look at this web site www.iolair.acnrep.com, here you will see an overview of a business opportunity where you are self employed but have behind you a large team of people who will be desperate to ensure that you are successful, also the remuneration which can become substantial is based on a residual income- ie do a job once and get paid monthly thereafter, rather like writing a book and earning royalties on each sale.

Answer 3

Yes, if you are not employed between now and 5 April 2007, you will be entitled to some tax back. However, if you are self employed between now and 5 April, you must inform the HMRC and NI contributions office and then you must fill out a tax return after April and pay any necessary tax next January 2008.

Answer 4

as a self employed person and therefore someone running your own company, you would be entitled to claim back VAT on business expenses.