Problem with tax, need advice ..?

Over the last year i fell into a difficult position with work, i was made redudant around august 06. Since then the same company that made me redunant has been using me as a freelancer every other week, i've constantly been trying to get back into a full time job but finding it difficult for a number of reasons. Since that time i've never really considered myself as self employed, i've always been on the hunt for a new job similar to my previous role. Anyway i've finally come across a lucky break that could get me back on track, i've been offered a job in London that begins soon. My problem is with tax, i've been working freelance for 14 months which i'm guessing means i should be paying tax on the work i've done, because i've never really considered myself as self employed i never gave thought to this in the past. Now that i'm starting my new job i'm worried about where i stand with tax?, will i need to pay tax on the work i've done? and will this effect my new job?

Thanks.

It won't affect your new job, but you will have to tell them that you have not paid any tax so far this financial year.

Then, you need to contact your local tax office and explain what has happened. You should have been registered as self-employed I guess. They are usually very helpful and will not punish you with a fine or whatever if you explain your situation.

You will however have to pay what you owe. No question. And your National Insurance.

It sound like you should have been paying tax as a self employed person - the main distinction comes with how NI contributions are assessed. You need to calcualte how much you have earned, less allowances and request a tax from for the period from your tax office. Your new job should put you back on PAYE which was where you before.

Good luck with the new job.

First, congratulations that things are looking up.
You may not need to worry too much, depending on how much you actually earned. Most people can earn 拢5225 a year before they start paying tax, so if you didn't earn much more than that your tax bill will be manageable. Plus, you get quite a long time to pay it. The best thing is to collect up your proof of earnings and call into your nearest tax office asap to put your mind at rest. They can help you work out what (if anything) you owe them & when you'd need to pay it by.

Whyever did you think you didnt have to pay tax?
The law states that you have to register as self employed within 3 months of starting in business. There is a 拢100 fine for not doing this, so you should now register without delay. The reason for the fine is that, although you don't pay your tax until 31 January follwoing the end of the tax year in which you made your profits, you are liable to pay class 2 NIC's from day 1 of your self employment.
Get all your income and expenditure details together now and prepare to make a return for the year ended 5 April 2007. But certianly register now with HMRC to regularise the sitation.
You don't need to tell your new employer about your slef employment by the way - this is confidential between you and HMRC.