Being self-employed in England

Self Employed as a Restaurant manager in London

The UK has 4.14 million self-employed, a record since 1992. According to the Chartered Institute of Personal Development (CIPD ) , the explosion in the number of self-employed is explained by rising unemployment 8.4 % of the UK population is currently looking for a job.
According to a report published this month by the dedicated human resources organization , increasing the number of self-employed ( + 8% in spring 2008 ) will limit the increase in the number of unemployed. But John Philpott , chief economist at CIPD , said that the new self-employed are not necessarily all entrepreneurs at heart. For many of these workers who have recently updated their account, it is likely that self-entrepreneurship is a temporary solution , pending return to paid employment.

How to become " self-employed "?

That said , the status of self-employed can be a way to make his life more than properly.
To obtain the status of self-employed in the UK , contact the tax authorities , known on this side of the Channel Her Majesty's Revenue and Customs (HMRC ) . Beforehand, you must get a number of British Social Security ( National Insurance number) , if you do not already have one. This process is done with Jobs centers. Once you have your National Insurance (NI ) number and you have verified that your activity corresponds to the status of self-employed , you can register as self-employed on the HMRC website .

Social security contributions and income tax as " self-employed "

If your income is greater than 5,315 pounds per year (about 6,400 euros) in 2011-2012, you must pay social security contributions in the amount of 2.5 pounds per week , or 130 pounds per year (about 150 euros in the year) . This is the Class 2 National Insurance contributions . To this is added a social contribution equal to 5 % of your taxable income (Class 4 National Insurance contributions ) . These social contributions are settled in two payments during the year, together with the rules of the income tax .
Precisely on the income tax , if you are filing a paper return , you have until October 31 following the close of the last fiscal year ( it starts on April 6th and ends on April 5 of the following year). If you choose to make your statement on the Internet , you have until January 31 of the following year. The income tax rates are identical to those that apply to all taxpayers . The only difference is that you can deduct from your taxes a number of business expenses.
Note that the services of the British tax organize training workshops very informative on how to keep its accounts , tax deductible expenses etc. . For more information , contact the nearest office to you .
By cons , know that if you will settle in Britain and acquire a property , it will be more difficult to contract a mortgage as self- employed. You will need to provide your bank last three tax returns, at least .