[DAYS_LEFT] days left of your Medeconomics free trial

Subscribe now

Your free trial has expired

Subscribe now to access Medeconomics

Tax if self-employed

I am a salaried GP working six sessions a week and my employer deducts tax from my pay. In August 2008 I also started doing locum sessions for other practices and working for the local out-of-hours service. Tax is not deducted before I am paid. When do I need to pay the tax and how?

The additional locum sessions and out-of-hours work is paid to you gross and you undertake it on a self-employed basis. When you first start self-employment, you are required to register with HM Revenue & Customs (HMRC) within three months or incur a £100 penalty.

If you are not registered I suggest you call the self-employment helpline on 0845 9154515 to register. Once registered, HMRC will issue you with a tax return to complete. To avoid another £100 penalty, you will need to file this online if you have not already sent in a return because the deadline for posting returns was 31 October 2009.

You must to declare all your earned income and any expenses claimed against your self-employed income for 2008/9 on the tax return. You need to file the return by 31 January 2010.

The tax on your self-employed income will be payable by the same date (31 January 2010) together with an estimated payment on account for the 2009/10 tax year. Usually, HMRC sends a payslip near the deadline to enable you to pay your tax.

As you are both employed and self-employed, you may pay more national insurance (NI) than you are required to. To avoid this, you can apply to defer class 4 NI contributions on your self-employed income. Download the application form at HMRC's website (www.hmrc.gov.uk).

Do you have a financial question? Ask our experts

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in

Would you like to post a comment?

Please Sign in or register.

Database of GP Fees

Latest Jobs