Information
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Document No.
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Document Name (for filing)
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Subcontractor Name / Company Name
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Conducted on
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Prepared by
Information
HMRC Registration Process
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As you are aware from the company introduction you attended at our offices, every Self Employed Contractor must be registered with the HMRC for Tax and National Insurance. If you have already registered please supply the V&G office with your UTR (Unique Tax Reference) Number so we can record this on the file we hold for you. If you have not as yet had time to complete the registration process, we have made arrangements to help guide and assist you through the process of Registration.
At the end of each financial year (the current one ends April 2014) you will need to submit an 'Online Tax Assessment' stating your income and expenses which will determine your tax liability or refund, whichever is applicable.
Clarify Billing
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Clarify Billing will supply you with the use of their online software platform which automatically creates invoices and a remittance advice based on your earnings and transfers these amounts to your basic bookkeeping software within the platform. It also notifies you during the course of the year about all your legal commitments as a 'Self Employed Contractor'. They will request that you submit a statement of your expenses on time (as per the attached example), a statement of which will be produced on the valid information inputted on your platform. Invoices for other customers must also be added to the platform by you; this will help to a compile a true and accurate declaration to the HMRC at the end of the year.
The cost for this service will be charged at £1.90 weekly, please notify V&G as soon as you change contracts to enable us to update your records accordingly.
If you would like to start using their services, simply sign the authorisation to enable V&G to activate your online account with the HMRC and notify you via email of all progress, updates, bulletins and submission deadlines, so you are always fully compliant with the HMRC.
Example of Tax Allowances
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Taxable Items Tax Deduction Annual Limits
Travel - Rail & Tube Tickets £2,000.00
Use of Residence as Office £600.00
Printing, Postage & Stationery £100.00
Telephone, Mobile, Internet £360.00
Computer Software £200.00
Small Hand Tools & Equipment £200.00
Large Tools & Equipment £500.00
Overalls & Work Clothing £200.00
Overalls - Laundry £260.00
Trade Magazines £150.00
Work Insurances (PAI, PL) £300.00
V&G Administration Fee £600.00
Office Secretarial Costs £1,820.00
(e.g.: wife/partner, only if they
are not employed elsewhere)
Office equipment - Computer, £500.00
Printer, iPad, etc.
TOTAL £7,790.00 -
Please be advised that the first £9,440.00 you earn is your 'Personal Tax Free Allowance' and is therefore exempt from taxes.
Example:
Estimated earnings of £300 per week £15,600.00 per year
Less Personal Allowance - £9,440.00 per year
Pre-tax Profits = £6,160.00
Less Estimated Expenses - £6,000.00
AMOUNT TO BE TAXED = £160.00
Additionally:
Class 2 National Insurance (NI) contributions of £2.70 per week will be invoiced directly to you by the HMRC every 6 months.
Only if applicable:
Class 4 National Insurance contributions are based on your profits for the year at a rate of 9% over £7,755 up to £41,450 (2013-2014) and 2% thereafter.
Declaration
Declaration
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I hereby authorise V&G to register me online as a 'Self Employed Contractor' including Self Assessment and National Insurance (NI) contributions with the HMRC.
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Name
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Date of Birth
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NI Number
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UTR Number (if you have registered)
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Residential Address
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Email Address
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Mobile Number
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Signature
