2007-02-12 18:05:56 · 2 answers · asked by sandeep s 1 in Business & Finance ➔ Taxes ➔ United Kingdom
No, you compute your taxes as a self-employed individual. This means that you attach schedule C and schedule SE to your return. In addition, one-half of your self-employment tax, 100% of your health insurance premium and any pension or retirement plan contribution you make are all deducted on the fron of your return to arrive at adjusted gross income. From this point you compute your taxes the same as anyone else.
Good Luck!
2007-02-12 22:36:49 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
Tax will be calculated the same. The one big difference is that instead of you paying half of the social security and medicare taxes, and your employer paying the other half, you have to pay the full amount. Also, when you work as a consultant, they do not withhold taxes. Instead, it is up to you to make sure that you have taxes paid in through estimated tax payments.
2007-02-12 18:09:58 · answer #2 · answered by jseah114 6 · 0⤊ 1⤋