Tax Question

I am studying for my Tax units at the moment and also helping someone else with their accounts and was hoping that someone can help me!!
If someone is self employed doing freelance instructing but also has a job where they are on the payroll and therefore paying NI contributions and PAYE - how are they taxed and what returns do they have to fill in?
Any replies would be greatly appreciated!
Nicky
If someone is self employed doing freelance instructing but also has a job where they are on the payroll and therefore paying NI contributions and PAYE - how are they taxed and what returns do they have to fill in?
Any replies would be greatly appreciated!
Nicky
Comments
However:
They need to have registered as self employed with HMRC
They will then be issued with a notice to complete a tax return
They have to complete the employment pages (using the details on the P60 from their job)
Also the self employment pages with details from their freelancing
Also the main form, where any relevant sections (e.g. interest, dividends, benefits) need completing
Any other sections of the tax return that are relevant.
Register now to do it online, much easier than on paper.
Rather than just enter it I wanted to fully understand what the 'tax' procedure was.
Thanks for replying
Nicky
Everyone has to start somewhere and helping people like this (especially with the backup of an accountant) is a really good way to start getting to know how these things are done.
Good luck in your studies!
She gets self billing invoices with her gross pay. I enter these on QB as invoices and when receive payment enter it accordingly. On a couple of them there is a deduction which simply says NIC - I would presume that this is employee NIC. My question is how would I show these entries on the system - the system needs to see the gross pay and then the deduction.
Think I must be getting old, can't get my head round it!
Any replies greatly appreciated!!
The double entry would be....
Original Invoice:
CR Sales
DR Debtors
Payment (via Customer > Receive Payments):
DR Bank
CR Debtors
There will be a balance due on the invoice equal to the NI.
I think the easiest way to show this in QB, as you have to clear the invoice through the Receive Payments dialog in order to keep the customer ledger straight is to do this:
Post another receive payments to the value of the NI into the bank.
Then post a bank payment the same date, to Drawings. Mark both entries "CONTRA".
The bank will remain balanced and the double entry will be happy.
Hope that helps.
Note it's Drawings, as NI is not a business expense and it doesn't need to be shown in the accounts.
It's worth making a note elsewhere that NI has been deducted and making this info available to the accountant.
The person is a model -so that would make sense why the agency is taking NI contributions.
Thanks
Nicky
Yes, her being a model makes perfect sense then