Self employed tax
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Hola,
My partner has just gone back to the UK to work for a care agency. She has been told she can earn 7,400 pounds tax free per year. Does that mean she will have to pay the full income tax for a year then reclaim it or she won´t be taxed at all until she has earned over 7,400?
I know this is a Spanish forum, but i thought you may have some UK tax knowledgeable people on board.
Many Thanks,
Amatista
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As an employee in UK one is subject to PAYE, thus the employer stops the tax due each month, according to one's tax code. The tax tables used by the employer show how much tax must be paid. If the earning are below the tax threshold then there would be no tax.
However, one must notify the tax office and get a tax code otherwise, they will be taxed on an emergency code, which will mean tax will be stopped, I believe even on the lowest of earnings.
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Aah yes, I should have said that she will be working on a self employed basis, so does she receive her wages from the agency tax free until she earns over 7,400 pounds, or is that something she would have to claim back after the first tax year?
Thanks,
Amatista
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If one is self emplyed (I believe one must be registered with the tax office anyway) then the employer does not stop any tax, it up to you to declare and pay it..
Hopwever, if you cannot satisfy the 'employer' that you are recognised by the tax offoce as self employed then they will stop tax, I believe on all payments, and you will need to claim it back.-.
I suggest you see (lots of info):- http://www.hmrc.gov.uk/migrantworkers/english.pdf
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