Being self employed and tax and stuff.

[Captain...]

After spending a number of joyless hours on the HMRC website and on hold to their "advice line" I am hoping someone on here has a bit of knowledge about this, every time I try and find out information on the website it just goes round and round in circles.

Baiscally I have been doing a bit of IT contracting in the UK and looks like I will be doing some more, I need to pay tax for what I earnt last financial year, not too much.

The problem is just doesn't seem simple, all I want to do is tell the tax office how much I earnt and then pay my tax, as a contractor I have almost 0 in expenses the companies I work for pay any expenses incurred so I am not worried about that.

I am not sure if this makes me self employed, a sole trader or just some guy that owes tax.

I know a lot of people on my position set up service companies and employ themselves but this is all a tax con, which is a) unethical and b) hard work and would require an accountant to sort it all out.

I am loathe to pay out hundreds of pounds for in essence simple calculations (of which there are plenty of free calculators online) but it is getting to the point now where I am just not getting anywhere with the HMRC.

I need a unique tax ref number and I have 2 different forms to fill in and I am not sure which one I should use as one is for self-employed and one cannot be used for self employed, and I don't really no what I am.

Anybody have any experience with this, and can give me some advice?

Thanks

[Saxondale]

Hope this helps a bit:

http://www.freelanceuk.com/ir35_ir591/index.shtml

[davieG]

I do some freelance assessing and just fill in my earnings on my tax form as other income.

[Bluefoxtim]

I'm in exactly the same position doing IT work and I agree, it's far more complicated than it should be!

You have to register as self-employed within 3 months of starting - if not you may get a fine I think.

On the HMRC website you need to register yourself for self-assessment. You'll then get posted your UTR.

Once you have this, you have to log-in and then send off for an activation code. Very slow and long process!

Not sure what needs to be done now

EDIT: Also got National insurance to consider....