How do I file income tax if I’m self-employed? What’s the basic income tax rate?

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basic income tax rate

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If you’re self-employed, you have to pay taxes and National Insurance. It has to be clear whether you’re self-employed or employed. Income tax is deducted at source for employees (PAYE) but if you’re self-employed, you might pay a different amount through a different process.
If you’re self-employed, you must register with HMRC. If you’re filing for the first time, be sure to have your Unique Taxpayer Reference. You have to tell HMRC about your self-employed status as soon as possible as failure to do so can lead to penalties. You’ll have to fill out a Self-Assessment tax return, which is usually around the 31st of January. Before that date, you have to make sure you paid your taxes.
As for the tax rate of the 2018-2019 tax year, you’ll have to pay a basic income tax of 20 percent what you earn if you make anywhere between £11,851 and £46,350.
Employees pay taxes through PAYE which is much easier but for those self-employed, it’s best to let professionals who can provide help with financial management from Atkinsons Chartered Accountants. With them, the entire process will be easy and hassle-free for you, so you can focus on your business.

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